British American Tobacco Kenya plc (BAT Kenya) remained bullish even as businesses complained of the Covid-19 economic effects, that slashed down most companies’ profits.
BAT’s profit after tax for the year ending December 31, 2021, improved by 18 percent to Ksh6.5 billion driven by the increase in net revenue, effective cost management and offset by higher corporation tax in line with rate changes.
During the year, a property valuation exercise was done resulting in a gain of Ksh1.2 billion in other comprehensive income.
Net revenue jumped marginally to Ksh25.4 billion as increased taxation ate into gross sales.
Gross revenue increased by 3 percent to Ksh40 billion. This was primarily driven by pricing benefits in the domestic market. This revenue growth was marginally reduced by lower export sales, attributable to slower economic recovery in some of our key markets.
Contribution to Government revenues Taxes in the form of Excise Duty, VAT, Pay As You Earn (PAYE) and Corporation Tax increased by Ksh2 billion (13 percent) to Ksh18 billion as a result of the inflationary increase in Excise Duty rates, as well as the VAT and Corporation Tax rate changes effected in January 2021.
The growth in gross revenue was offset by a Ksh1.1 billion (eight percent) increase in Excise Duty and Value Added Tax (VAT), following inflationary increases in Excise Duty rates and VAT rate changes. Consequently, net revenue Increased marginally by 0.4 percent to Ksh25.4 billion.
The Board of Directors has proposed a final dividend of Ksh50 per share to be recommended for approval by shareholders at the Annual General Meeting to be held on May 24, 2022.
The final dividend, when added to the interim dividend already paid, gives o total dividend of Ksh53.50 per share.
BAT has 100 million issued shares and exercises a policy of distributing the bulk of its net earnings (82.5 percent) to shareholders in form of dividends.