British American Tobacco Kenya (BAT) posted a 41 per cent growth in profit for the year ended December 31, 2020, to Ksh.5.5 billion from Ksh.3.9 billion in 2019.
The higher earnings were attributed to a lower cost base and reduced tax liabilities following relief on corporation tax by the government.
“Net revenue increased by five per cent to Ksh.25.3 billion, driven by higher export revenues and lower excise duty and value-added tax (VAT), which reflects the impact of the decline in domestic sales volumes and the reduction in the rate of VAT in April 2020,” BAT said in a statement on Thursday.
‘Accelerating transformation – Growth in New Categories and Group earnings despite COVID-19'.
Our 2020 preliminary results for the year ended 31 December are available now.
— BAT (@BATplc) February 17, 2021
Its revenues reduced by two per cent to Ksh.38.8 billion with its domestic sales slumping by 24 per cent from the effects of the COVID-19 pandemic.
“Last year saw our domestic performance take a significant hit, with volumes declining by 24 per cent, as consumers responded to affordability challenges resulting from the impacts of Covid-19 by flocking to the illicit market, ‘BAT MD Crispin Achola said.
The board has recommended a Ksh.41.50 final dividend payment to be approved by shareholders at its Annual General Meeting (AGM) on May 12.
Its current share price is Ksh 484.75. The BAT stock closed its last trading day (Friday, February 19, 2021) at Ksh 484.75 per share on the Nairobi Securities Exchange, recording a 10.23% gain over its previous closing price of Ksh 439.75.
BAT began the year with a share price of Ksh 361.00 and has since gained 34.28% on that price valuation, ranking it 1st on the NSE in terms of year-to-date performance.