BATBC announces decade-low dividend of 30%

The British American Tobacco Bangladesh Company (BATBC) has disclosed a significant reduction in its annual shareholder payouts, marking a historic low for the business. 

The board of directors of the multinational cigarette producer today announced a 30 percent cash dividend for its shareholders for 2025 and the decision follows a substantial drop in net profits, forcing the firm to deviate from its typically generous financial distributions. 

Historical data indicates that while the company previously issued substantial dividends, the current 30 percent cash offering is the weakest performance seen in over 10 years. 

Even the relatively low returns reported in 2023 – 100 percent – were significantly higher than the current figures shared on the Dhaka Stock Exchange. 

The BATBC usually provides between 400 percent and 600 percent cash dividend, according to company data available since 2015 on the DSE website. 

According to a disclosure by the company, its earnings per share plunged by around 67 percent year-on-year to Tk 10.81, compared to Tk 32.42 the previous year. 

However, the company did not provide any reason for such a drop in profit. Along with profit, its net asset value per share also fell to Tk 102 from Tk 106.8 the previous year. 

Today at the DSE, the tobacco company’s stock was traded at Tk 266, almost a two-year low for the company’s shares.