FEATURED STORY

BAT Kenya Smokes Competition to Post Ksh6.5B Profit

Share
BAT Kenya
During the year, a property valuation exercise was done resulting in a gain of Ksh1.2 billion in other comprehensive income. [Photo/ Courtesy]
Share

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.

Read: Telco Wars: Chiloba Battles Safaricom Over Lower Rates

>>> BAT Kenya CEO Resigns

Written by
FRANCIS MULI -

Editor and writer, Francis Muli has a passion for human interest stories. He holds a BSc in Communication and Journalism from Moi University and has worked for various organisations including Kenya Television Service. Email:[email protected]

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
Affordable Housing Project
FEATURED STORY

Govt Puts Up For Sale 4,888 Affordable Housing Units: Here’s The Full List And How To Buy

The government has put up for sale 4,888 affordable housing units across...

Geraldine Sande, Channel Sales Leader for Schneider Electric East Africa
FEATURED STORY

How Working With ‘Glocal’ Original Equipment Manufacturers Can Empower East Africa’s Channel Partners For Success

Channel partners in East Africa, including resellers, distributors, system integrators and panel...

Treasury CS John Mbadi
FEATURED STORY

Understanding Tax Amendment Bills: How The New Laws Will Affect Kenyans

The government has announced several amendments to the existing tax laws to...

Prime Cabinet Secretary and Cabinet Secretary for Foreign & Diaspora Affairs
FEATURED STORY

Inside Kenya’s 60 Years of Diplomatic Journey

Kenya is set to commemorate 60 years of diplomacy this week starting...