BM Desk :  BAT Bangladesh has announced an 81% decrease in net profit and a 23% reduction in revenue for the second quarter of this year compared to the same quarter last year.

As per the company’s unaudited financial report, the profit for this quarter was Tk97 crore, a drop from Tk512 crore the previous year. Revenue decreased to Tk2,213 crore from Tk2,891 crore during the same timeframe.

In the first half of 2025, the company reported a net profit of Tk415 crore, with earnings per share (EPS) recorded at Tk7.69.

In its report, the company cited increased inflationary pressures and the temporary shutdown of its Dhaka factory as reasons for the decline in both revenue and profit.

Since 1964, BAT Bangladesh has been leasing its factory premises from the Dhaka Cantonment Board. Each lease lasts for 30 years, with the possibility of renewal for a maximum of 90 years.

The company sought to renew the lease for the remaining 30 years; however, after the board refused to extend it, BAT Bangladesh commenced legal action to assert what it believed were its contractual rights.

On May 29, the Appellate Division, presided over by Chief Justice Syed Refaat Ahmed, rejected BAT Bangladesh’s appeal, which contested a prior High Court ruling concerning the lease dispute.

Previously, on December 12 of the previous year, the High Court had also dismissed the company’s writ petition challenging the cantonment board’s decision not to renew the lease for the Mohakhali DOHS land.

BAT Bangladesh operates three factories located in Mohakhali, Savar, and Manikganj, along with a green leaf trash plant in Kushtia.

The first factory in Bangladesh (then known as East Pakistan) was established in 1949 at Fauzdarhat in Chattogram, followed by the second factory of Pakistan Tobacco Company in Mohakhali in 1965.

After the independence of Bangladesh, the company was renamed Bangladesh Tobacco Company Limited, and in 1998, it rebranded itself as British American Tobacco Bangladesh, aligning its corporate identity with other entities within the BAT Group.

A spokesperson for BAT Bangladesh stated today that they are in the process of ensuring a seamless transition to a new head office.

He informed media, “BAT Bangladesh had a 90-year lease from the Cantonment Board since 1964, which could be extended every 30 years. Following the Supreme Court’s Appellate Division ruling on May 29, our request to extend the lease was denied. We respect the esteemed Supreme Court’s decision and are coordinating with the Bangladesh Army to vacate the premises by mid-July 2025.”