British American Tobacco Records KSh 4.2 Billion Profit after Tax

British American Tobacco has released its 2016 Financial Year results posting 4.2 billion shillings in terms of profits after tax, 15 percent lower than what was realized in the year 2015.

The company, in the results audited by KPMG, recorded 5.9 billion shillings in profits before tax from 7.1 billion shillings recorded in the year 2015 at the same time.

The company, however, realized a 2 percent increase in in gross revenue standing at 36.7 billion shillings, an in increase in cash generated from operations by 2.3 billion shillings to 8.0 billion shillings and an increase by 3.1 billion shillings in contribution to government revenues to 19.2 billion shillings.

The company’s management has proposed a dividend of 43 shillings per share for the shareholders as it looks forward to a fruitful 2017.

According to the statement released, the cost of operations by the company reduced by 9 percent to 13.3 billion shillings through what the management called “stringent cost management, productivity and overhead savings.”

Finance costs on the other hand reduced by 45 percent to 295 million shillings “principally due to lower foreign exchange related losses and interest expenses during the year.”

BAT now has a net working capital of 12.2 billion shillings being an increase from 12.1 a year before with profits from operations reducing from 7.67 billion shillings to 6.54 billion shillings.

Many companies are expected to release their 2016 financial results between this month of February and that of March with early signs of many running into losses due to the prevailing economic situation, coupled with the rising inflation being high.

The banking sector is also expected to release the full year financial results between February and March. Yesterday, Barclays Bank of Kenya became the first lender to release the financial results which were largely affected by the interest capping law.