British American Tobacco Bangladesh’s Sales Grew By 22.2%1 min read
British American Tobacco Bangladesh the largest cigarette company in Bangladesh published its Q3 financial report for the year 2021. Net revenue of the company increased by 22.2% YoY from Tk 43,442.0 Mn in 9M’21 to Tk 53,081.9 Mn in 9M’21. The increase in net revenue is mainly driven by a 23.5% growth in domestic stick sales. Profit after tax grew by 32.6% YoY from Tk 8,721.6 Mn in 9M’20 to Tk 11,563.7 Mn in 9M’21.
Net Revenue of the company grew by 22.1% YoY mainly driven by growth in domestic sales. The domestic sale which is the main contributor of revenue for BAT has grown by 23.5% YoY from Tk 42,164.8 Mn in 9M’20 to Tk 52,054.3 Mn in 9M’21. The domestic sale growth was mainly driven by 17.9% YoY growth in total sticks sold in Bangladesh. Export sale of sticks (finished goods) and leaf export decreased by 86.9% and 1.6% YoY.
Profit after tax of BAT increased by 32.6% YoY from Tk 11,563.7 Mn in 9M’20 to Tk 8,721.6 Mn in 9M’21. The growth is mainly driven by an increase in Gross Profit Margin. Gross Profit Margin increased from 52.9% in 9M’20 to 56.2% in 9M’21. Operating costs increased by 31.0% YoY.
The long-term future looks bright for British American Tobacco since the company is growing consistently annually. Even the purchasing decision of buying cigarettes didn’t get impacted due to the third lockdown for Covid-19. The company’s gross profit margin and average price per stick sold (domestic) indicate that BAT has enjoyed some growth in mid to higher-end products. The average price sold is likely to trend upwards with the rising urbanization and higher purchasing power.
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