BAT Kenya Plc, a tobacco manufacturer, reported a Sh2.9 billion net profit for the first half of the year, a 7.4% increase over the Sh2.7 billion reported in the same period last year.
The firm’s improved earnings were attributed to pricing advantages in the domestic market and increased export sales as a result of economic recovery in some of its key markets.
BAT’s gross revenue increased by 8% to Sh21.9 billion during the period, acting as a buffer against increased operational costs and higher taxes.
The company’s total cost of operations increased by 15% to Sh9.9 billion, primarily due to higher input costs as a result of global supply chain challenges.
Additionally, taxes such as Excise Duty, VAT, Pay As You Earn (PAYE), and Corporation Tax increased by 2% to Sh9.4 billion, reflecting higher excise duty rates.
The high tax rates were caused by recent increases in excise duty rates of 5% in November 2021 and 10% effective July 2022.
The Board of Directors approved a Sh5.00 per share interim dividend for the fiscal year ending December 31, 2022.
“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.
