B Mirror Report: British American Tobacco (BAT) Bangladesh’s profit tumbled sharply in 2025, falling to Tk 5.84 billion  the lowest since the company was listed on the stock exchange amid sluggish sales, higher excise duties and one-off expenses linked to the closure of its Dhaka factory.

The cigarette maker witnessed a 67 per cent year-on-year decline in profit, according to price-sensitive information disclosed on Monday.

As a result, earnings per share (EPS) dropped significantly to Tk 10.81 in 2025, down from Tk 32.42 in the previous year.

The steep fall in annual profit was largely driven by a fourth-quarter loss of Tk 1.37 billion during the October–December period.

Reflecting the weak performance, the company’s board declared a 30 per cent cash dividend for 2025  the lowest in its history since listing in 1977. Shareholders will receive Tk 3 per share against the annual EPS of Tk 10.81. In contrast, BAT paid a 300 per cent cash dividend in 2024.

With 540 million outstanding shares, the company will distribute Tk 1.62 billion in dividends to its investors.

Due to the reduced payout, BAT’s dividend yield declined to 1.13 per cent in 2025, marking another historic low.

The company has yet to publish detailed financial statements. Attempts to contact Company Secretary Syed Afzal Hossain for comment were unsuccessful.

Market analysts attributed the profit slump to extraordinary costs related to the shutdown of the Dhaka factory. Akramul Alam, head of research at Royal Capital, said the additional expenses stemming from the factory closure significantly impacted earnings.

He also noted that rising input costs and increased excise tax payments added further pressure. However, the company was unable to fully pass on the higher costs to consumers due to inflationary constraints, which weighed on the bottom line.

BAT Bangladesh shut down its Dhaka factory last year after the Supreme Court dismissed its appeal to extend the land lease agreement. Production activities were subsequently shifted to Ashulia.

The company incurred Tk 2.12 billion in one-off exit costs during the first nine months through September last year. Additionally, it invested Tk 2.97 billion to expand the capacity of its Savar factory to ensure smooth production following the relocation.

Although the company has not yet disclosed its full-year revenue for 2025, its revenue for the nine months through September dropped 17 per cent year-on-year to Tk 57.55 billion.

BAT is scheduled to hold its annual general meeting (AGM) on April 30, while the record date for dividend entitlement has been fixed for April 1.

The company markets several popular brands, including Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Lucky Strike, Derby, Pilot, Flag and Hollywood.

Meanwhile, BAT’s share price edged up 0.45 per cent to Tk 266.1 on the Dhaka Stock Exchange (DSE) on Monday. The earnings disclosure was made after market hours.