BAT Kenya Posts KSh 2.7bn Half Year Profit After Unprecedented Year

British American Tobacco Kenya (BAT)'s net income rose by 0.71% in the first half of the year, according to figures published on Thursday.
  • Gross revenues +22% to Kshs 20.3B –
  • Net Revenue +19% to Kshs 12.5B
  • Cost of operations +27%
  • Operating Profit +4%
  • Profit before tax +5% to Kshs 3.9B
  • PAT Kshs 2.7Bn
  • EPS Kshs 26.98

BAT Kenya‘s net income rose by 0.71% in the first half of the year increasing by KSh19 million to KSh2.69 billion for the six months to June.

The higher earnings were attributed to increased sales volumes.

“Gross revenue increased by 22 per cent to Ksh 20.3 billion driven by the recovery of domestic sales volumes, excise-led price increases and sustained momentum on export sales,” the cigarette maker said in its results.

The company added that its growth in domestic sales was partly offset by the five per cent rise in excise duty that was effected in October 2020 and the change in value-added tax in January 2021.

“This triggered price increases which generated additional pressures on consumer affordability resulting in downgrading to lower-priced brands and a high incidence of illicit trade,” said BAT.

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Operational costs rose by 27 per cent to KSh8.6 billion driven by higher volumes of cigarettes sold and investment in portfolio transformation.

Finance costs dropped to KSh49 million from KSh81 million incurred in the previous similar half year.

The board has approved an interim dividend of KSh3.50 per share amounting to KSh350 million. 

The interim dividend will be paid on 16 September 2021 to shareholders on the register at the close of business on 12 August 2021.

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