Tobacco manufacturer BAT Kenya Plc has posted a Kes 2.9 billion net profit for the first half of the year, a 7.4 percent growth compared to Kes 2.7 billion posted in the same period last year.
The improved earnings for the firm were attributed to pricing benefits in the domestic market and growth in export sales following economic recovery in some of its key markets.
Over the period, BAT’s gross revenue increased by 8 percent to Kes 21.9 billion serving as a buffer to the increased operational costs and higher taxes during the period.
BAT Kenya’s total cost of operations increased by 15 percent to Kes 9.9 billion primarily driven by higher input costs due to global supply chain challenges.
Further, taxes in the form of Excise Duty, VAT, Pay As You Earn (PAYE) and Corporation Tax increased by 2 percent to Kes9.4 billion reflecting the higher excise duty rates.
The increased tax rates were brought about by the recent increases in excise duty rates of 5 percent in November 2021, and 10 percent effective July 2022.
The Board of Directors approved an interim dividend in respect of the year ending 31 December 2022 of Kes 5.00 per share.
“The interim dividend, which is subject to withholding tax, will be paid on or about 16 September 2022 to shareholders on the register at the close of business on 12 August 2022,” said BAT Kenya Company Secretary, Kathryne Maundu in a statement.
