BAT Kenya Profits Up To 6.89 Billion Shillings

BAT Kenya has made a 6.3 percent net profit growth to 6.89 billion shillings in the year ended December 2022. This is the third year in a row that the cigarette manufacturer has been posting some impressive numbers.

During the year under review, total revenue rose by 8 percent to 27.38 billion shillings from 25.43 billion shillings. This was driven by growth in export volumes and a pricing benefit on domestic and export sales. The operating costs increased by 9 percent to 17.5 billion shillings on higher input costs.

At the same time, the company collected 14.87 billion shillings as excise duty and value-added tax (VAT) on behalf of the Kenya Revenue Authority (KRA). The excise duty and VAT, added to pay-as-you-earn and corporation tax, took total tax payments to Sh18.5 billion.

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“The excise duty tax rate has, between November 2021 and November last year, increased by 21.3 percent, piling pressure on consumers,” said the cigarette maker in a statement.

With the profits, BAT Kenya has proposed to pay its shareholders a final dividend of 52 shillings per share. This, added to the 5 shillings paid as interim dividends for the six-month to June period, brings the total payout to 57 shillings per share.

The board has announced that the dividend will be paid on or about June 15 to shareholders on its register by May 26. The total dividend payout will amount to 5.7 billion shillings, up from 5.35 billion shillings last year.

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BAT Kenya has become the second big corporate in Kenya to protest the increase of excise duty by the Kenya Revenue Authority (KRA) which is likely to hurt businesses further coupled with the high cost of doing business in the country.

The new excise duty is expected to come into effect in March this year.