British American Tobacco (BAT) Kenya has recorded an 8.38% growth in profit for the six months ending June 30, 2015. The firm’s net earnings rose from Ksh1.79 billion to Ksh1.94 billion.
This has been largely contributed by increased earnings from tobacco exports following depreciation of the kenya shilling. “Net revenue from sales were almost flat, expanding by a marginal 2.33 per cent that is from Ksh10.31 billion to Ksh10.55 billion June 2014,” read a part of BAT financial statement.
The company operations income rose from Ksh500 million to Ksh2.7 billion. This was attributed by the growth in underlying performance and benefits of working capital management initiatives.
Cigarette market is globally facing a harsh regulatory regime due to hazardous effects which comes with smoking.
Locally, the firm is opposed to regulations that will see 2% of sales revenue contributed to a proposed fund to cater for those suffering from effects of smoking, and publishes warning graphics on cigarette packages.
“We are committed to engaging transparently with relevant stakeholders to ensure regulations are balanced, evidence-based and do not lead to unintended consequences such as increased illicit trade,” said BAT in a statement.
The company paid KSh6.80 billion in excise duty and value added tax during the period, barely unchanged from KSh6.54 billion remitted 12 months earlier.
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