BAT Kenya shareholders to receive record dividend on profit rise
British American Tobacco (BAT) Kenya shareholders will receive a dividend payout of Ksh.50 per share after its net profit surged by 18 percent for the year ended December 31, 2021.
Net profit increased to Ksh.6.48 billion from Ksh5.51 billion in 2020, driven by a property valuation gain of Ksh.1.2 billion and a relatively favourable trading environment as the government eased COVID-19 restrictions.
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.
Gross revenues rose by three percent to Ksh.40 billion from Ksh38.84 billion, fueled by pricing gains in the domestic market, while the cost of operations declined to Ksh16.05 billion from Ksh17.75 billion.
“This revenue growth was marginally reduced by lower export sales, attributable to slower economic recovery in some of our key markets,” said BAT Kenya.
Increased taxation, however, offset sales by eight percent Ksh.1.1 billion.
Finance costs declined by 52.6 percent to Ksh.82 million from Ksh.173 million during the period under review.
The Nairobi Securities Exchange-listed firm noted that illicit cigarette trade continues to prevail and impact the industry.