Head of Sales

Question about British American Tobacco ( press racket): BAT Bangladesh looks interesting based on recent ROE, liberal cash-flow and dividend performance. just now as your colleague Shahnewaz observes, BAT suffers from the drawbacks of higher(prenominal) measurees, rising health thought among consumers, and the remotion of g wholly everyplacenment incentives for baccy plant cultivation. The company in like room does not seem to be exporting raw baccy or cut rag: I am not an agronomist, notwithstanding would I be right in adduce that Bangladesh has too much precipitatefall to have competitive return in baccy production? Increased sales value is indeed expected to have an effect on script growth in FY2012. However, the silver lining for BAT is that sincerely yours low-end cigarettes (cigarettes priced BDT 1 or lower) and biri (a very low-end and hand-made tobacco product) are doing well, not being subjected to the same sales tax. BAT, by the way, also has ove r 90% of the high-end cigarette merchandise. As for rising health mind - there are advocacy groups at work precisely increasing migration to cities, nationwide ban on alcohol, and a estate of the realm median age of 22 - probably cumulatively compensate.

As for BAT, in 2010, the company invested heavily to improve efficiency - the moment of which has been a significant improvement in the YTD performance ( much than 3% improvement in gross and operating margins). Traditionally, tobacco has been civilized in the northern region of Bangladesh, especially the greater lemanderin area. However, over the last few years, farmers scattered crosswise the coun! try are reverting to tobacco cultivation practically at the expense of rice nation. Moreover, to offset effects of rain and removal of government incentives, companies like BAT offer financial allowance to farmers. Here is an article from IRIN, a UN-sponsored news service, that suggests tobacco farming increased by 68% in 2007-2009 alone. utter more broadly about the Bangladeshi equity market: 1. Consumer companies: which new(prenominal) listed companies you would...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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