BATBC: 3Q23 Earnings Update

BATBC BD posted EPS of BDT 7.52 registering 1.1% YoY negative growth during 3Q23 and posted EPS of BDT 25.11 registering 2.4% YoY growth during 9M23.

BATBC BD’s net revenue declined by 7.6% YoY during 3Q23 driven by 0.2% YoY negative growth in domestic sales volume, 54.7% negative growth in leaf export volume, and 2.9% negative growth in net price per stick.

During 9M23, BATBC BD’s revenue grew by 10.3% YoY driven by 7.6% YoY growth in domestic sales volume, 2.2% growth in net price per stick, and 28.3% YoY growth in net price per kilogram from leaf export.

During 9M2023, domestic sale and export of leaf contributed 95.6% and 4.4% to net revenue respectively.

BATBC BD’s gross margin fell by 242 bps during 3Q23 and 685 bps during 9M23 while net profit margin rose by 144 bps during 3Q23 and fell by 154 bps during 9M23.

Opex decreased 38.3% YoY during 3Q23 but increased 13.4% YoY during 9M23, which impacted the bottom line positively in 3Q23 and negatively in 9M23.

Net finance expenses decreased 34.1% YoY during 9M23, partially offsetting increased cost of sales and opex.