The Bangladesh Securities and Exchange Commission (BSEC) has declared the removal of the floor price restriction for British American Tobacco (BAT) Bangladesh stock, scheduled for March 4th. The directive, issued on February 6th, specified that the floor restriction for BAT Bangladesh shares would cease the day after the record date, set for March 3rd.
The floor price represents the lowest price designated by the securities regulator at which a stock can be traded. Following its enforcement for 18 months, the commission lifted the restriction for most stocks in January of this year.
Currently, BAT Bangladesh shares have been stagnant at the floor price of Tk518.70 each on the Dhaka bourse since September 2022.
BAT stands as the second-largest company by market capitalization, constituting 6.55% of the Dhaka Stock Exchange’s total valuation, with a current total market cap of Tk28,000 crore.
On February 8th, BAT Bangladesh announced a 100% cash dividend for its shareholders in 2023, marking the lowest dividend in over a decade. The multinational tobacco manufacturer reported a profit of Tk1,788 crore in 2023, a marginal increase from Tk1,787 crore in 2022.
Despite a similar profit, the company declared a dividend representing only 30% of last year’s total profit, a substantial decrease from the 200% cash dividend payout in 2022.
While dividend data for BAT Bangladesh was unavailable before 2010, the company was known for announcing generous dividends over the years.
According to available data, BAT Bangladesh reported earnings per share of Tk33.11 in 2023, a slight increase from Tk33.10 in the previous year.
BAT Bangladesh is scheduled to convene its annual general meeting on March 28th.
Operating factories in Dhaka and Savar, along with a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj, BAT Bangladesh has invested more than Tk1,200 crore over the past three years to enhance production capacity and meet growing demand.
Although detailed annual financial statements are yet to be published, available data indicates that the company’s net turnover for the first nine months of 2023 grew by 10%, reaching Tk6,793 crore. During the same period, domestic cigarette sales witnessed a 10% year-on-year increase, totaling Tk6,493 crore. Additionally, leaf exports surged by 16%, amounting to Tk30 crore in the January-September period of 2023.
BAT exports cigarettes to various countries, with significant markets like China and the Maldives contributing substantially to the company’s global exports.
