British American Tobacco Kenya (BAT Kenya) has reported a decline in profit for the first half of 2024. The company’s turnover fell by 6.47%, totalling Ksh19.64 billion, while operating profit decreased by 2.96% to Ksh3.77 billion.
Both pre-tax and post-tax profits saw a significant drop, with declines of 24.31% to Ksh3.05 billion and Ksh2.14 billion, respectively.
Waeni Ngea, Company Secretary at BAT Kenya, attributed the downturn to a challenging operating environment marked by geopolitical disruptions, inflation, and currency volatility. Notably, the Kenya Shilling appreciated by approximately 22% against the US Dollar, leading to substantial foreign exchange losses.
Despite the financial setbacks, BAT Kenya has maintained its interim dividend at Ksh5.0 per share. This dividend, subject to withholding tax, will be distributed on or around 27 September 2024 to shareholders on record as of 30 August 2024.
Summary of Financial Performance for H1 2024
- Gross Sales (Including Indirect Taxes): Ksh19.6 billion (down 6.5% from H1 2023)
- Net Revenue: Ksh11.7 billion (down 10.7%)
- Cost of Operations: Ksh7.9 billion (down 14.0%)
- Profit from Operations: Ksh3.8 billion (down 3.0%)
- Net Finance Costs: Ksh0.7 billion (up 596.6%)
- Profit Before Tax: Ksh3.1 billion (down 24.3%)
- Income Tax Expenses: Ksh0.9 billion (down 24.3%)
- Profit After Tax: Ksh2.1 billion (down 24.3%)
- Dividend Per Share: Ksh5.0 (unchanged)
- Earnings Per Share: Ksh28.2 (up 32.1%)