Earnings Report /
Bangladesh

BAT Bangladesh: Q3'22: 39% yoy NPAT growth due to increase in cigarette volume and leaf export

  • EPS stood at BDT 7.60 in Q3 22 and stood at BDT 24.5 in 9M 21 driven by 38% growth in revenue.

  • Domestic revenue grew by 27% driven by 22% volume increase and 5% price hike.

  • Gross margin fell 332 bps yoy to c52.6% in Q3 CY22 which was partially offset by 166 bps drop in Opex/sales in Q3 CY22.

IDLC Securities
7 November 2022
Published byIDLC Securities
  • 39.4% NPAT growth in Q3 CY22; 9M profit increased by 13.6% yoy. Major reasons are 38% growth in revenue. EPS in Q3 22 stood at BDT 7.60 against BDT 5.45 in Q3 21. In 9M 2022, EPS stood at BDT 24.5 against BDT 21.58 in 9M 21.

  • Upstanding revenue performance driven by volume growth. Domestic revenue grew by 27% driven by 22% volume increase and 5% price hike. Export revenue from tobacco leaf sales grew by 523.4%, reaching c10% of Q3 CY22 sales. Growth in domestic cigarette volume may be because of gain in market share and higher consumption. Growth in tobacco leaf export may be driven by relatively cheaper price of tobacco because of c17% BDT depreciation against USD.

  • Profitability: Gross margin fell substantially by 332 bps yoy to c52.6% in Q3 CY22. It was partially offset by 166 bps drop in Opex/sales in Q3 CY22. Operating profit margin declined by 166 bps YoY to 39.9% in Q3 CY22.

  • Effective tax rate stood at 46.1% in Q3 2022, 230 bps decline from Q3 2021.