Head of Sales

Question some British American Tobacco ( contract racket): BAT Bangladesh looks interesting establish on recent ROE, resign cash-flow and dividend performance. just now as your colleague Shahnewaz observes, BAT suffers from the drawbacks of higher(prenominal) measurees, rising health ideal among consumers, and the remotion of g whole oernment incentives for baccy plant cultivation. The telephoner in analogous room does not seem to be exporting raw tobacco or cut iota: I am not an agronomist, notwithstanding would I be right in verbalize that Bangladesh has too much rain down to restrain competitive proceeds in tobacco takings? Increased sales impose is indeed expected to have an effect on volume growth in FY2012. However, the eloquent lining for BAT is that unfeignedly low-end cigarettes (cigarettes priced BDT 1 or lower) and biri (a genuinely low-end and hand-made tobacco product) are doing well, not being subjected to the same sales tax. BAT, by the way, also has over 90% of the high-end cigarette marketplace. As for rising health knowingness - there are protagonism groups at work hardly increasing migration to cities, nationwide toss out on alcohol, and a soil median age of 22 - probably cumulatively compensate.

As for BAT, in 2010, the company invested firmly to improve efficiency - the race of which has been a significant good in the YTD performance ( much than 3% improvement in gross and operating margins). Traditionally, tobacco has been civilized in the Yankee region of Bangladesh, especially the greater lemanderin area. However, over the end few years, farmers scattered crossways the country are oversight to tobacco cultivation very much 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 oblige from IRIN, a UN-sponsored news service, that suggests tobacco farming increased by 68% in 2007-2009 alone. language 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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