Exploring How BAT Bangladesh Achieved a Profit of Tk 17,879 Million in 20232 min read

British American Tobacco Bangladesh aka BAT Bangladesh achieved a profit of Tk 17,878.7 million in 2023, overcoming substantial macroeconomic obstacles. The business environment in Bangladesh presented significant challenges in 2023, including currency devaluation and foreign currency issues, which restricted the company’s growth. As a result, the profit margin for 2023 saw a minimal increase of 0.04% compared to the previous year. Here are the critical insights from the 2023 financial statements.

Double-Digit Growth in Gross Revenue

Despite facing economic challenges, British American Tobacco Bangladesh successfully met good volume targets in 2023. This accomplishment led to an 11.7% year-over-year increase in gross revenue.

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This achievement was primarily driven by an 8.5% year-on-year increase in domestic stick sales. However, British American Tobacco Bangladesh experienced a decline in its leaf export business and finished goods exports. Specifically, leaf exports saw a 22.2% decrease compared to the previous year, and the company recorded no revenue from stick exports.


The High and Premium segments faced challenges in maintaining their market position, as their prices have been increasing for six consecutive years. In contrast, the Low segment saw a 9% growth in 2023. This trend is reflective of a broader market behavior where consumers are shifting towards lower-segment brands in response to rising prices.
In 2023, British American Tobacco Bangladesh’s leading brand, Benson & Hedges, experienced a 9% year-on-year decrease, attributed to consumer downtrading and reduced consumption due to successive price hikes. Similarly, John Player Gold Leaf saw a 12% decline in the same period. Conversely, the Star brand witnessed notable growth in 2023, assuming consumers shifted from John Player Gold Leaf and Royals to Star, resulting in an 18% increase in volume for the brand. The lower-tier brand portfolio of BAT Bangladesh, which includes Royals of London, Derby, Hollywood, and Pilot, saw a growth of 9% in 2023.Read more: Unilever Plans 7,500 Job Cuts and Spin-off of Ice Cream Arm, Including Ben & Jerry’s

However, despite these shifts in consumer preferences, Net Revenue (excluding Supplementary Duty and VAT) saw a modest rise of 8.8% year-on-year, primarily due to an increase in Supplementary Duty and VAT expenses, which went up by 12.6% compared to 2022.

White and Brown Minimalist Real Estate Business Card44Nominal Gross Profit Growth

In 2023, British American Tobacco Bangladesh’s Gross Profit saw a slight increase of 0.6% year-on-year, impacted by a significant rise in the cost of sales. The cost of sales surged by 17.9% year-on-year, attributed to currency devaluation and challenges related to foreign currency. Consequently, the Gross Profit margin decreased from 52.5% in 2022 to 48.5% in 2023.

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Minimal Increase in Profit

Profit growth was virtually stagnant at 0.04% over the previous year, primarily due to increased expenses related to Supplementary Duty (SD) & Value Added Tax (VAT), rising cost of sales, and operating expenses. In 2023, the operating expenses of British American Tobacco Bangladesh escalated by 9.1% year-on-year, reaching Tk 9,468.8 million. Consequently, the company’s operating profit saw a 1.5% decrease year-on-year, amounting to Tk 35,033.9 million in 2023.

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