BAT half year profit unchanged at KSh.2.7 billion
Published on: July 22, 2021 04:23 (EAT)
Manufacturer British American Tobacco Kenya (BAT) has posted Ksh.2.7 billion as its half year profit through six months to June 2021. This to equal earnings posted at the same stage last year from increased sale revenues amidst rising operating costs including taxes. BAT’s net revenues were up 19 per cent at Ksh.12.5 billion driven by the recovery of domestic sales volumes. Taxes in the form of excise duty, VAT and income tax meanwhile increased by Ksh.1.8 billion to Ksh.9.2 billion in line with higher domestic sales volumes and higher corporation and VAT rates. Similarly, the total cost of operations increased by 27 per cent to Ksh.8.6 billion driven primarily by new investments in portfolio transformation. BAT’s cash generation bounced back in the period having increased by nearly 10-fold to Ksh.3.6 billion after the enhancement of working capital management initiatives. Subsequent to the steady profitability, the board of BAT has approved a Ksh.3.50 interim dividend per share, the same shareholder pay out as last year. The interim dividend will be paid on September 16.