- BAT Kenya Plc’s net profit increased by 7.4 per cent through the first six months of the year, moving up to ksh.2.9 billion from ksh.2.7 billion in the same period the previous year
- The firm’s operating expenses have increased by 15.1 per cent to a total of sh. 9.9 billion as a result of rising input costs caused by difficulties in the global supply chain
- BAT’s gross revenues for the period were recorded at Ksh.21.9 billion, which is 8.4 percentage points higher than the Ksh.20.2 billion reported in June of last year
The net profit of tobacco manufacturer BAT Kenya Plc increased by 7.4 per cent through the first six months of the year, moving up to ksh.2.9 billion from ksh.2.7 billion in the same period the previous year.
The higher tobacco prices on the local market and increased export volumes, which occurred against the backdrop of increased excise duty rates, were the primary contributors to the company’s better earnings.
As a consequence, BAT’s gross revenues for the period were recorded at Ksh.21.9 billion, which is 8.4 percentage points higher than the Ksh.20.2 billion reported in June of last year.
The increased revenues have helped to offset the rising operations cost as well as the increased tax burden over the course of the past six months.
The firm’s operating expenses have increased by 15.1 per cent to a total of sh. 9.9 billion as a result of rising input costs caused by difficulties in the global supply chain.
However, cumulative taxes increased by 2% to a total of sh9.4 billion, which reflects higher exercise duty charges and increased profitability.
The increased tax liability that BAT faces is a result of recent hikes in exercise duty rates, one of which will be a five per cent rise in November 2021.
After a 10% increase in the rate of excise duty took effect in July of 2022, it is anticipated that the impact of the higher duty will continue to have a significant influence on the second half of the year.
The Board of Directors of BAT has approved a proposal to pay an interim dividend of Ksh.5 per share, which would amount to a total pay-out of Ksh.500 million and would be distributed on or around 16 September.
According to a statement released by the BAT Kenya Company Secretary, Kathryne Maundu, “the interim dividend, which will be paid on or about 16 September 2022 and will be subject to withholding tax, will be paid to shareholders who were on the register at the close of business on 12 August 2022.”
BAT Group is a Top employer in Africa
in January 2022, the Top Employers Institute honoured BAT Kenya by recognising the company as a top employer in Kenya and Africa for the fifth year in a row.
The recognition follows the announcement that the BAT Group has been named the Global Top Employer for 2022 in three regions: Africa, Asia Pacific, and Europe. Additionally, the BAT Group has been named the Top Employer in 33 countries throughout Africa, Asia Pacific, Europe, the Middle East, and Latin America.
About BAT Kenya
British American Tobacco Kenya plc is a company that was initially known as British American Tobacco Kenya Limited.
It is situated in Kenya and is involved in the production as well as selling of tobacco products, including cigarettes. Over ten of the company’s brands are currently available to consumers in the Kenyan market. The factory that the company has located in Nairobi makes a wide variety of goods and distributes them to a number of different needs.
The plant owned by the company serves as a production hub for the countries located in Eastern Europe, the Middle East, and Africa.
Dunhill, Embassy, and Sportsman are some of the brands that the company offers. In addition, the company makes Rothmans available to customers in Kenya. Other goods provided by the company include the mentholated convertible cigarette known as the Dunhill Release, the differentiated menthol cigarette known as the Embassy Fresh, and the capsule offer known as the Dunhill Switch.
In Thika, the company has a Green Leaf Threshing production facility. The company is wholly owned by British American Tobacco Plc, which is the parent company.