British American Tobacco Kenya (BAT Kenya) has reported a decline in profits for the six months ended June 2024.
The company’s turnover dropped by 6.47% to Ksh19.64 billion, while operating profit fell by 2.96% to Ksh3.77 billion.
Profit before and after tax both declined by 24.31% to Ksh3.05 billion and Ksh2.14 billion, respectively.
“The operating landscape was characterised by geo-political disruptions, inflationary pressures and currency volatility. During the period, the Kenya Shilling recorded a significant appreciation (approximately 22 per cent) against the United States Dollar (our exports trading currency) which resulted in substantial foreign exchange losses,” said Waeni Ngea, BAT Kenya Company Secretary.
| British American Tobacco (BAT) Kenya Plc Summarized Income Statement | |||
| Income Statement | H1’2023 | H1’2024 | Y/Y Change |
| Kshs (bn) | Kshs (bn) | ||
| Gross Sales including Indirect Taxes | 21.0 | 19.6 | (6.5%) |
| Excise Duty and Value-Added Taxes | (7.9) | (7.9) | 0.6% |
| Net Revenue | 13.1 | 11.7 | (10.7%) |
| Cost of operations | (9.2) | (7.9) | (14.0%) |
| Profit from operations | 3.9 | 3.8 | (3.0%) |
| Net Finance Costs | 0.1 | (0.7) | (596.6%) |
| Profit Before Income Tax | 4.0 | 3.1 | (24.3%) |
| Income Tax Expenses | (1.2) | (0.9) | (24.3%) |
| Profit After Tax | 2.8 | 2.1 | (24.3%) |
| Dividend Per Share | 5.0 | 5.0 | 0.0% |
| Earnings Per Share (Kshs) | 21.4 | 28.2 | 32.1% |
Source: British American Tobacco (BAT) Kenya Plc H1’2024 Financial Report
“These factors significantly increased the cost of doing business, adversely impacted consumers’ disposable incomes and drove legitimate volume contraction and downtrading,” she added.
Despite the downturn, the company maintained its interim dividend at Ksh5.0 per share.
The interim dividend, which is subject to withholding tax, will be paid on or about 27 September 2024 to shareholders on the register as at the close of business on 30 August 2024.
