BAT Bangladesh sees 2% drop in profit

British American Tobacco Bangladesh Company Ltd (BATBC) faced a slight fall in profit as leaf exports softened.

In the July-September quarter of 2024, the company made a net profit of Tk 397 crore, which is nearly 2 percent lower than Tk 405 crore of the same period last year. 

"Earnings per share decreased from the same period last year driven by lower leaf export," according to a disclosure on the Dhaka Stock Exchange (DSE) website.

However, the company's solid cash flow signals strong operational resilience amidst the export challenges.

Its earnings per share (EPS) also edged down to Tk 7.35 from Tk 7.52, primarily impacted by lower leaf export volumes.

Shares of BATBC, a blue chips stock, soared 5.40 percent to Tk 364.8 as of 11:58 am today, highlighting a strong investor sentiment despite a decline in profit. 

Despite the hit to exports, BATBC's net operating cash flow per share (NOCFPS) surged to Tk 26.17 for January-September 2024, which the company cited to stronger cash collection from higher domestic sales. 

The tobacco manufacturer declared an interim cash dividend of 150 percent, equating to Tk 15 per share, as the company mentioned in its unaudited financial results for the third quarter.