British American Tobacco aka BAT Bangladesh the largest cigarette company in Bangladesh posted its quarterly report for the period Jan’21-Mar’21. Net Revenue of the company increased by 12.8% YoY from Tk 18,098.5 million in Q1’20 to Tk 20,420.6 million in Q1’21.
The increase in net revenue is mainly driven by growth in domestic sales and leaf export sales. Profit after tax of the company also grew by 27.5% YoY from Tk 3,036.9 million in Q1’20 to Tk 3,872.0 million in Q1’21.
Net Revenue of the company grew by 12.8% YoY mainly driven by growth in domestic sales and leaf export sales.
The domestic sale which is the main contributor of revenue for BAT has grown by 12.7% YoY from Tk 17,822.4 million in Q1’20 to Tk 20,093.1 million in Q1’21. The domestic sale growth was mainly driven by 6.7% YoY growth in total sticks sold in Bangladesh. Export sale of sticks (finished goods) and leaf export increased by 38.7% and 18.1% YoY respectively.
Profit after tax of BAT increased by 27.5% YoY from Tk 3,036.9 million in Q1’20 to Tk 3,872.0 million in Q1’21. The growth is mainly driven by an increase in Gross Profit Margin and low growth in operating costs. Gross Profit Margin increased from 49.0% in Q1’20 to 52.6% in Q1’21. The operating costs only grew by 4.5% YoY from Tk 2,246.5 million in Q1’20 to Tk 2,348.5 million in Q1’21. Opex compared to sales decreased from 12.4% to 11.5% of the net revenue.
Read more: Tobacco prices rise in Budget 2021-2022.
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 coronavirus pandemic. Hence, we believe even though there has been lockdown for the larger part of the second quarter (Apr’21-Jun’21) BAT will be able to maintain good growth in the upcoming quarter as well.