BAT Kenya to pay record dividend as profit rises

BAT Kenya to pay record dividend as profit rises

Summary

  • Net profit increased to Ksh6.48 billion ($57.34 million) from Ksh5.51 billion ($48.76 million) in 2020, driven by a property valuation gain of Ksh1.2 billion ($10.6 million) and a relatively favourable trading environment as the government eased Covid-19 restrictions.
  • The Nairobi Securities Exchange-listed firm noted that illicit cigarette trade continues to prevail and impact the industry

British American Tobacco (BAT) Kenya has proposed to pay its shareholders a dividend of Ksh50 ($0.44) per share after its net profit surged by 18 percent for the year ended December 31, 2021.

This brings the total dividend payout to Ksh53.50 ($0.47) per share following an interim Ksh3.50 ($0.03) awarded during the year.

The payout is the highest ever in the history of the cigarette maker. Last year, it paid Sh45 per share.

Net profit increased to Ksh6.48 billion ($57.34 million) from Ksh5.51 billion ($48.76 million) in 2020, driven by a property valuation gain of Ksh1.2 billion ($10.6 million) and a relatively favourable trading environment as the government eased Covid-19 restrictions.

Gross revenues rose by three percent to Ksh40 billion ($353.98 million) from Ksh38.84 billion ($343.71 million), fueled by pricing gains in the domestic market, while the cost of operations declined to Ksh16.05 billion ($142.03 million) from Ksh17.75 billion ($157.07 million).

“This revenue growth was marginally reduced by lower export sales, attributable to slower economic recovery in some of our key markets,” BAT Kenya said.

Source: The East African

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