Africa-Press – Kenya. British American Tobacco (BAT) Kenya has posted an 18.2 per cent increase in profit after tax for the year ended December 31, amid growth in revenue.
The Nairobi Securities Exchange (NSE) listed firm has reported a net profit of Sh6.5 billion, up from Sh5.5 billion in 2020 the previous year.
This was driven by the increase in net revenue, effective cost management and offset by higher corporation tax in line with rate changes, management notes.
“The growth in profitability is reflected in higher earnings per share (+18%), aligned to our commitment to deliver sustainable shareholder value,” it says in its financials.
Gross revenue increased by three per cent to Sh40 billion, primarily driven by pricing benefit in the domestic market.
This revenue growth was however marginally reduced by lower export sales, attributable to slower economic recovery in some of the key markets.
The growth in revenue was off set by a Sh1.1 billion (8%) increase in excise duty and VAT , following the inflationary increases in excise duty rates and VAT changes.
Consequently, net revenue increased marginally by 0.4 per cent to Sh25.4 billion.
During the year, a property valuation exercise was done in line with the company’s accounting policy, resulting in a gain of Sh1.2 billion in other comprehensive income.
The board has proposed a final dividend in respect of the year ended December 2021 of Sh50 per share to be recommended for approval by shareholders at the Annual General Meeting set for May 24.
The final dividend, when added to the interim dividend already paid, gives a total dividend of Sh53.50 per share.
This translates to a record Sh5.3 billion , the highest payout in its history.
It paid Sh18 billion to the government inform of taxes- excise duty , VAT, Pay As You Earn(PAYE) and corporation tax, which increased by Sh2billion.
The increase came as a result of the inflationary increase in excise duty rates, as well as the VAT and corporation rate changes effected in January 2021.
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