Hiding factory closure info: BATBC loses Tk 1,382cr in market value in a day
The closure of British American Tobacco Bangladesh Company Limited’s (BATBC) Dhaka factory and a sharp drop in quarterly profits have triggered a major market backlash – wiping Tk 1,382 crore off the company’s market capitalisation in a single day.
The plunge came after BATBC disclosed in its Q2 financial report, published on the Dhaka Stock Exchange (DSE) on Sunday, July 27, that the shutdown of its Mohakhali factory had significantly impacted its April-June earnings.
This revelation raised serious concerns among investors and regulators about delayed disclosure of price-sensitive information.
BATBC had earlier informed the DSE on June 19 that its factory in the DOHS area of Mohakhali, Dhaka, would be closed from July 1, with operations shifting to Deora, Dhamsona, and Balibhadra Bazar in Ashulia.
However, the company only cited the closure as a factor in its Q2 profit decline after the financial results were released leading to accusations that it withheld critical information from investors during the reporting period.
The controversy began earlier this year when Paribesh Banchao Andolan (PBA) called on the government on May 14 to remove the tobacco factory from the residential DOHS area due to environmental and health concerns. Sources suggest the closure process began as early as May, though the company did not publicly acknowledge its financial impact until weeks later.
When Jago News contacted a senior BAT official for clarification, the source, speaking on condition of anonymity, admitted: “Although the factory was fully shut down in July, the closure process started in May.”
Pressed on why this was not disclosed earlier as price-sensitive information, the official declined to answer directly, saying: “Send your questions in writing. We will respond officially.”
The questions were later submitted via WhatsApp to the official’s PR contact, Redwan of Four Third PR, who acknowledged receipt and promised a response. Over an hour passed, no reply came. When followed up, Redwan said: “We have not yet received any response from BAT.”
The financial fallout is stark. BATBC’s profit per share in Q2 (April–June) 2025 was just Tk 1.80 – a dramatic drop from Tk 9.48 in the same quarter last year.
It marks the lowest quarterly profit in the company’s history since its listing on the DSE in 1977.
For the first half of the year (January-June), profit per share fell to Tk 7.69, down from Tk 17.14 in the same period of 2024.
Investors have expressed frustration over the lack of timely disclosure.
“They never said the factory closure would affect Q2 results,” said one institutional investor. “We were misled.”
DSE Chairman Mominul Islam acknowledged the gravity of the situation: “This is a serious incident. Either the company was unprepared, or it will lose in court. They only disclosed the information on June 25 – after a court ruling. The disclosure should have been more transparent and timely.”
Under DSE rules, companies are required to disclose any event that could materially affect share prices, immediately, as price-sensitive information.
The market reacted swiftly. On July 27, BATBC’s share price plummeted from Tk 321.80 to Tk 296.20 – a drop of Tk 25.60 (7.96%) – erasing Tk 1,382.4 crorefrom its total market value in a single session.
BATBC, manufacturer of global brands like Benson & Hedges, Dunhill, Rothmans, Gold Leaf, Lucky Strike, and Kent is the world’s second-largest tobacco company by sales.
It has long maintained a dominant presence in Bangladesh’s market.
The company has 540 million shares listed on the DSE. Of which 72.91% shares ae held by promoters and directors, 8.15% by retail investors, 14.11% by institutions, and 4.19% by foreign investors.