BAT posts lowest dividends in its history as its profits plummet

Earnings per share decreased by 67 percent last year

British American Tobacco (BAT), the country's largest tobacco company, is paying only 30 percent cash dividends to shareholders after a collapse in profits.

This means shareholders will receive a dividend of Tk 3 for each share, which is the lowest payout in the company's history.

The company's board of directors set the dividends for the accounting year ending Dec 31, 2025, according to information disclosed on the Dhaka Stock Exchange (DSE) on Tuesday.

Previously BAT had paid dividends of 300 percent in 2024, 100 percent in 2023, 200 percent in 2022, 275 percent in 2021, and 600 percent and 200 percent in bonus shares in 2020.

The company's annual general meeting (AGM) will be held on Apr 30 to approve the dividend declared this time. The record date has been set for Apr 1.

BAT’s earnings per share (EPS) last year were only Tk 10.80, down from Tk 32.42 in the previous year. This means earnings per share fell by 67 percent.

The company says that the main reason for the decline in profit was the increase in operating expenses due to falling revenue, inflationary pressures and increased activities in some business sectors.

Moreover, in July 2025, British American Tobacco closed its Dhaka factory and transferred its plant, machinery and cigarette production equipment to its Savar factory.

The cigarette manufacturer has reported that the operating profit is Tk 7.15 billion lower than the previous year, including the cost of factory closures, relocation and restructuring.

BAT’s 60-year-old headquarters and factory operations were closed down in Dhaka's Mohakhali DOHS and moved to Ashulia from Jul 1 last year after the government declined to renew the lease.

BAT was first listed on the stock market in 1977.

The total number of BAT shares available in the market is 540 million. Of these, 72.91 percent are held by entrepreneurs and directors. Of the remaining shares, general investors hold 8.79 percent. In addition, institutional investors hold 14.43 percent and foreigners hold 3.23 percent. An additional 0.64 percent is held by the Bangladesh government.