BATB sees stocks drop despite higher profits
Stocks of British American Tobacco Bangladesh (BATB) dropped although it announced higher profits in the first quarter (January-March) of 2021.
Its stocks closed 1.25 per cent lower at Tk 553 yesterday.
The BATB's sales rose by around 11 per cent to hit Tk 9,554 crore in the first quarter of this year, fueling the company's profits in turn.
During the January-March period, the listed multinational cigarette maker's profits surged 27 per cent to Tk 387 crore year-on-year.
The company's earnings per share (EPS) increased as well compared to the same period last year due to growth in volume and cost optimisation, the BATB said in its financial report.
Its EPS stood at Tk 21.51 this year while it was Tk 16.87 a year earlier.
The company issued two stocks against each owned in the form of stock dividend for 2020 but it was not credited to the shareholders' account before March 31 and so, the bonus share was not included in accounting the EPS.
However, had the bonus shares been issued as of March 31, the EPS would have been Tk 7.17. The cigarette maker's operating expense rose four per cent to Tk 234 crore, according to the financial report.
Listed with the Dhaka bourse since 1977, the BATB's sponsors hold around 73 per cent of its shares.
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