British American Tobacco Bangladesh PLC (BATB), the maker of brands such as Benson & Hedges, John Player Gold Leaf, Star and Derby, has published its un-audited financial statements for the nine months ended 30 September 2026 (9M 2026). The company earned a net profit of BDT 5,130.2 million, 28.8% lower than BDT 7,202.6 million in 9M 2025. Earnings per share fell to BDT 9.50 from BDT 13.34.
This is the second straight year of sharp decline. Profit is now 62.2% below the BDT 13,556.8 million earned in 9M 2023.
British American Tobacco | Double-Digit Revenue Decline
Net revenue fell 11.5% to BDT 50,907.7 million from BDT 57,547.1 million. This comes on top of a 17.0% decline in 9M 2025, leaving revenue 26.6% below the peak of BDT 69,373.1 million in 9M 2024.
Revenue stream | 9M 2026 | 9M 2025 | Growth |
|---|---|---|---|
Domestic sale | 46,879.4 | 52,309.8 | -10.4% |
Third party sale | 1,005.4 | – | New |
Finished goods export | – | 1,537.1 | -100.0% |
Tobacco leaf export | 3,022.9 | 3,700.2 | -18.3% |
Total net revenue | 50,907.7 | 57,547.1 | -11.5% |
Source: Company financials. Net revenue in BDT million.
Sales quantity | 9M 2026 | 9M 2025 | Growth |
|---|---|---|---|
Domestic sale (million sticks) | 32,538 | 36,239 | -10.2% |
Third party sale (million sticks) | 419 | – | New |
Finished goods export (million sticks) | – | 424 | -100.0% |
Tobacco leaf export (million kgs) | 5.40 | 7.86 | -31.3% |
Source: Company financials.
Domestic sales, which brought in 92.1% of net revenue, fell 10.4% to BDT 46,879.4 million, almost exactly in line with the 10.2% drop in sticks sold. The domestic business alone accounts for 81.8% of the BDT 6,639.5 million fall in total revenue.
Finished goods export, which earned BDT 1,537.1 million from 424 million sticks last year, brought in nothing this period. A new third party sale line partly filled the gap, adding BDT 1,005.4 million from 419 million sticks. Tobacco leaf export fell 18.3% to BDT 3,022.9 million as export volume dropped 31.3% to 5.40 million kgs.
The third quarter was much weaker. Q3 2026 net revenue fell 24.9% to BDT 12,595.6 million from BDT 16,771.3 million, compared with a 6.0% decline in the first half.
Gross Margin Falls to 41.3%
Gross profit fell 16.1% to BDT 21,041.3 million, faster than revenue, because cost of sales came down only 8.0% to BDT 29,866.4 million. As a result, gross margin dropped to 41.3% from 43.6%. The margin has fallen every year since 9M 2022, when it stood at 54.7%. With fewer sticks going through the factories, fixed production costs are spread over a smaller base, which likely explains part of the squeeze.
In Q3 2026, gross profit dropped 32.1% to BDT 4,988.2 million. Gross margin fell to 39.6% from 43.8%, the lowest third-quarter margin in the last five years.
Rising Expenses and Tax Pull Profit Down
Operating profit fell 27.4% to BDT 13,475.7 million, and the operating margin slipped to 26.5% from 32.3%. The main pressure came from operating expenses, which rose 16.4% to BDT 7,565.6 million even as revenue shrank. Operating expenses now take 14.9% of revenue, up from 11.3% a year ago.
Net finance expenses fell 8.1% to BDT 899.8 million, helped by the full repayment of BDT 9,700.0 million of short-term bank loans that were outstanding at the end of 2025. More importantly, last year’s results carried a one-off head office exit cost of BDT 2,123.8 million, which did not repeat. This kept the fall in profit before WPPF to 18.9%, at BDT 12,630.3 million. Without last year’s one-off charge, the drop would have been 28.6%.
After a WPPF contribution of BDT 631.5 million, profit before tax stood at BDT 11,998.8 million. Income tax expense fell only 9.5% to BDT 6,868.6 million, much slower than pre-tax profit. The effective tax rate therefore rose to 57.2% from 51.3%, which made the decline in net profit steeper than the decline in pre-tax profit.
Net profit came in at BDT 5,130.2 million, and the net margin fell to 10.1% from 12.5%. The core reason behind the fall is volume: BATB sold 32,538 million sticks in the local market, 10.2% fewer than last year and 37.8% fewer than in 9M 2023. Two years ago, the company kept over BDT 19 of every BDT 100 of net revenue as profit; now it keeps about BDT 10.
Q3 2026 was the weakest quarter in the period. Operating expenses jumped 50.4% to BDT 1,920.5 million, cutting operating profit nearly in half (down 49.5%) to BDT 3,067.7 million. Tax took 64.5% of pre-tax profit, against 41.0% in Q3 2025. Net profit for the quarter fell 67.3% to BDT 998.4 million, with EPS of BDT 1.85 against BDT 5.65.
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