BAT has recorded a 22 per cent rise in profit after tax, this is according to its latest results.
The company earned Ksh4.1 billion in 2018 up from Ksh3.3 billion PAT earned in 2017. The good performance was credited to increased sales of semi-processed tobacco, excise-led pricing of its products, and a drop in finance cost.
Better working capital management led to less need for overdraft facilities which translated to a 32 per cent drop in finance costs.
The company experienced a 9 per cent rise in operation costs due to increased investment in portfolio, changes in the work place and increased sales of semi processed tobacco.
Cases of illicit cigarette trade increased to 14.1 per cent in 2018 from 12.4 per cent in 2017 which negatively affected the sale of BAT products in Kenya and subsequently the amount of tax BAT paid to the government.
The board of directors has proposed a final dividend in respect of the year ended 2018 of Ksh31.50 per share to be approved by shareholders on its May AGM.
The final dividend when added to the interim dividend already paid , gives a total of Ksh35 per share.
