BAT Shareholders To Receive Ksh 30 Per Share As Dividend

British American Tobacco Kenya plc has announced its full-year results for the year ended 31 December 2019; posting gross revenues of 39.8 billion shillings, after-tax profit of 3.9 billion shillings and a contribution to Government revenue of 18 billion shillings.

The Company recommends a final dividend of 30.00 shillings per share for their shareholders, payable net of Withholding Tax to shareholders on the register on at the close of business on 20 March 2020. The total dividend for 2019 will be 33.50 shillings per share.

“I am extremely pleased by the business’ resilient performance, which is reflected in the recommendation by the Board of Directors of a final dividend of KSh 30.00 for 2019. The total dividend for 2019 will be KSh 33.50 per share,” BAT Chairman George Maina said.

Commenting on the results, BAT Kenya Managing Director, Beverley Spencer-Obatoyinbo said: “I am pleased to report that BAT Kenya’s business continues to show resilience and deliver sustained shareholder value, despite the difficult operating environment in Kenya and in many of our export markets.”

Gross revenue increased by 9.1 percent, driven by excise-led pricing on cigarettes in Kenya, increased cut rag (semi-processed tobacco) sales into Sudan and the introduction of new category revenue in Kenya following the launch of BAT’s new oral nicotine pouch, which does not contain tobacco. Profit before tax reduced despite the revenue growth, primarily due to the anticipated impact of the solatium compensation contribution and a 20 percent increase in excise duty rates during 2019.

The launch of BAT’s oral nicotine product category was a major milestone for the Business in 2019 and a significant first step “on our journey towards transforming the tobacco industry. Given the high incidence of oral stimulant use amongst smokers, we believe that this new product category will provide a viable alternative to smoking. As such, we are looking to invest 2.5 billion shillings in building the first-of-its-kind factory in Africa for the manufacturing of our oral nicotine pouch.”

‘The factory would serve as a major export hub for Africa and beyond. It is an investment that speaks to Kenya as a destination for foreign direct investment and our commitment to the manufacturing agenda.”