British American Tobacco Kenya Plc (BAT Kenya) experienced a decline of 18.8% in net profit for the fiscal year 2023.
The company’s net profit dropped from KSh 6.9 billion in 2022 to KSh 5.6 billion in 2023.
The decrease in profit was due to factors such as affordability issues, illicit trade, and regulatory uncertainty.
“2023 was a very challenging year characterized by significant economic turbulence across both our domestic and export markets. Geopolitical disruptions, cost of living pressures, currency devaluation, rising interest rates and tax increases adversely impacted the trading environment,” disclosed the company.
The gross sales of BAT Kenya also decreased by 2%, reaching KSh 41.2 billion in 2023, while the cost of operations increased by 1%, totalling KSh 17.6 billion.
In addition, BAT Kenya’s revenue also declined to KSh 25.6 billion in 2023 from KSh 27.4 billion in 2022. Furthermore, the earnings per share (EPS) for BAT decreased to KSh 55.68 in 2023, down from KSh 68.92 in 2022.
The Board of Directors has proposed a final dividend for the year ending 31 December 2023 of KSh 45.00 per share, to be recommended for approval by shareholders at the Annual General Meeting to be held on 26 June 2024.
When added to the interim dividend already paid, the final dividend gives a total dividend of KSh 50.00 per share.
The dividend, subject to withholding tax, will be paid on or about 26 June 2024 to the shareholders on the register at the close of business on 24 May 2024.
