British American Tobacco Bangladesh aka BAT Bangladesh, the largest cigarette company in Bangladesh posted its half-yearly report for the period Jan’21-Jun’21. Net Revenue of the company increased by 25.1% YoY to Tk 38,411.8 million in H1’21 from Tk 30,704.8 million in H1’20. The increase in net revenue is mainly driven by 25.8% YoY growth in domestic sales. Profit after tax of the company also grew by 43.6% YoY from Tk 6,003.4 million in H1’20 to Tk 8,620.0 million in H1’21.
Revenue Analysis | BAT Bangladesh
Net Revenue of BAT Bangladesh grew by 25.1% YoY mainly driven by growth in domestic sales. The domestic sale which is the main contributor of revenue for BAT has grown by 25.8% YoY from Tk 30,190.8 million in H1’20 to Tk 37,969.5 million in H1’21. The domestic sale growth was mainly driven by 20.6% YoY growth in total sticks sold in Bangladesh. Export sale of sticks (finished goods) and leaf export decreased by 90.7% and 42.0% YoY.
Profit Analysis | BAT Bangladesh
Profit after tax of BAT increased by 43.6% YoY from Tk 6,003.4 million in H1’20 to Tk 8,620.0 million in H1’21. The growth is mainly driven by an increase in Gross Profit Margin and low growth in operating costs compared to gross profit. Gross Profit Margin increased from 52.8% in H1’20 to 56.3% in H1’21. Operating costs increased by 27.3% YoY whereas the gross profit increased by 33.6%.
Future Ahead | BAT Bangladesh
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 second lockdown for Covid-19. Hence, we believe that the company will not be impacted due to the 3rd phase of lockdown in the coming quarter. The company is also focusing on export opportunities by deciding to invest Tk 3,222.0 million to set up a factory in Savar.