Bangladesh among BAT’s lucrative Asia-Pacific markets
February 27, 2011 11:20 am
Bangladesh’s increased cigarette sales, both in volume and value, has placed it among top four markets of cigarette giant, British American Tobacco Group, in Asia and the Pacific.
According to a statement of the company issued in London, Bangladesh was among its top four very good performing Asia-Pacific markets.
It also said that the company’s global turnover in the current calendar year already reached £14.9 billion or $25 billion.
It said that Bangladesh and the three other countries in Asia and the Pacific contributed significantly to the good global business performance of BAT.
‘In Asia-Pacific, profit was up £184 million to £1,332 million as a result of strong performances in Japan, Australia, New Zealand and Bangladesh,’ the company said in the statement.
It said that in the markets across Asia-Pacific the sales of BAT, which has operations in 35 countries, increased by two per cent to 188 billion pieces, due mainly to increases in sales in Bangladesh and Vietnam.
‘Bangladesh achieved significantly higher market share. Operating profit was higher, reflecting improved volumes and the impact of excise-led price increases, as well as a tight control on costs,’ the statement said.
BAT officials in Dhaka, however, declined to share the statistics of business in Bangladesh for the calendar year 2010.
They said that the company’s performance during the year would be announced at the annual general meeting of the publicly listed company next month.
At the Dhaka Stock Exchange the BATB shares sold for Tk 630 on Thursday, an intra day rise of 0.16 per cent.
According to the company’s financial statement for January-September 2010 as posted on its website shows that its gross turnover during the nine months, taxes included, amounted to Tk 4,812 crore (US$677 million), up 22 per cent over the corresponding period of the previous year.
BATB’s increasing earnings from the export of tobacco leafs also contributed to swelling its overall turnover.
Industry watchers expect BATB’s gross annual turnover to be around $1 billion this calendar year.
In terms of the value of sales, BATB remains the largest tobacco company in Bangladesh with its pricey brands like Benson & Hedges, Gold Leaf having strong market penetration and the low priced brands, particularly Star have, good market share.
With annual sales of nearly three billion sticks, retailed at Tk six a stick, Benson & Hedges, BATB produces and markets in the country under an arrangement, remains the leader of the premium market segment. Retailers sell a packet of 20 sticks of Benson and Hedges for Tk 110, though the retail price is written as Tk 104.
Tobacco industry analysts say BATB’s premium brands were likely to face competition from the new entrant Marlboro of Philip Morris USA, the world’s largest tobacco company.
Marlboro entered the Bangladesh market in partnership with Dhaka Tobacco Industry, a concern of local tobacco giant Akij Group.
With its popular low priced brands, particularly Navy, Akij is the second major player in the country’s cigarette market. Akij remains the undisputed leader in bidi segment.
Industry watchers said that the country’s cigarette market was growing defying government policy to discourage tobacco consumption.
Bangladesh’s annual cigarette sales are now estimated at more than Tk 10,000 crore.