BAT -14.49% in 1 Month Due to Bangladesh Q3 Profit Drop

British American Tobacco (BAT) reported a 23% year-on-year decline in profits for the third quarter of 2025 in Bangladesh, driven by a sharp sales slump and increased operational costs. The multinational tobacco firm recorded a profit of Tk 3.05 billion for the July–September period, down from Tk 3.97 billion during the same period in 2024. Earnings per share (EPS) also dropped to Tk 5.65 from Tk 7.35 a year earlier.

The company cited a significant drop in sales volume, higher excise duties, and additional costs due to the closure of its Dhaka factory as key factors behind the profit decline. BAT Bangladesh’s overall net sales for the quarter fell by 18% year-on-year to Tk 16.77 billion. This decline was exacerbated by a 20% drop in local sales to Tk 52.31 billion, though leaf exports rose 78% to Tk 3.70 billion.

Operational challenges were further compounded by one-off exit costs of Tk 2.12 billion during the first nine months of the year and a 15% rise in operating costs. Additionally, finance expenses increased by 21%, and excise duty costs rose by 14%, both of which contributed to the company’s weakened bottom line. The net operating cash flow per share turned negative Tk 21.70 for the January–September period, down from positive Tk 26.17 in the same period the previous year. The net asset value per share also declined to Tk 105.22 from Tk 113.82.

Despite the profit decline, BAT Bangladesh maintained its market presence with a diverse portfolio of brands including Benson & Hedges, John Player Gold Leaf, and Lucky Strike. The company’s stock closed at Tk 254.9 on the Dhaka Stock Exchange, reflecting a modest 0.31% gain compared to the previous trading day.

The earnings report highlights the vulnerability of BAT’s business in Bangladesh to external factors such as regulatory changes and operational disruptions. The closure of its Dhaka factory and the subsequent relocation have had a lasting impact on the company’s cost structure and profitability. Analysts project that without significant improvements in sales performance and cost management, the company could face continued earnings pressure in the near term.

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