BATBC posts highest revenue in 10 years!
BATBC posted the highest revenue in 10 years! Unfortunately, their bottom line performance fell short despite their spectacular topline. Here’s how:
- In Q2 CY23, BATBC reported c22% revenue growth driven by c10% cigarette volume growth, c7% average cigarette price growth and increase in tobacco leaf export.
- Gross margin fell by 672bps yoy to c50%. Operating profit margin declined by 1,049bps yoy to c40% in this quarter.
- Gross margin contraction and OPEX rise offset revenue growth and resulted in flat earnings growth.
What does the future hold for this blue-chip firm bottom line performance?
