British American Tobacco Bangladesh the largest cigarette company in Bangladesh published its Q1 financial report for the year 2022. Net revenue of the company declined by 4.4% YoY from Tk 20,420.6 Mn in Q1’21 to Tk 19,530.2 Mn in Q1’22. The decrease in net revenue is mainly driven by 5.2% de-growth in domestic stick sales. Profit after tax grew by 7.7% YoY from Tk 3,872.0 Mn in Q1’21 to Tk 4,169.5 Mn in Q1’22.
Net Revenue of the company declined by 4.4% YoY mainly driven by de-growth in domestic sales. Domestic sale which is the main contributor of revenue for BAT has declined by 5.2% YoY from Tk 20,093.1 Mn in Q1’21 to Tk 19,056.1 Mn in Q1’22. Total sticks sold locally declined by 8.8% YoY in Q1’22. Export sale of sticks (finished goods) declined by 15.3% YoY and leaf export increased by 46.7% YoY.
Profit after tax of BAT increased by 7.7% YoY from Tk 3,872.0 Mn in Q1’21 to Tk 4,169.5 Mn in Q1’22. The growth is profit is mainly due to 30.7% lower operating expenses compared to same period last year. Total opex was Tk 1,626.9 Mn in Q1’22 which was Tk 2,348.5 Mn in Q1’21. As a result operating profit increased by 6.3% YoY from Tk 8,400.2 Mn in Q1’21 to Tk 8,932.1 Mn in Q1’22.
Q1’22 has not been a great quarter for British American Tobacco Bangladesh as its revenue declined mainly due to lower consumption in domestic market.
The company’s gross profit margin and average price per stick sold (domestic) indicates that BAT have enjoyed some growth in mid to higher end products. Average price sold is likely to trend upwards with the rising urbanization and higher purchasing power. The company’s efficient cost management allowed the company to grow in terms of profit in this quarter.
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