British American Tobacco Kenya plc (BAT Kenya) reported a net profit of KES 6.9 billion for the year ended 31 December 2022, a 6.3 per cent growth compared to the KES 6.4 billion net profit reported in the same period last year.
Revenue increased by 9% to KES 27.4 billion, driven by growth in export sales and pricing benefits on domestic and export sales.
The total cost of operations increased by 9% to KES 17.5 billion, attributable to higher input costs partly offset by productivity savings.
Gross profit was up by 7% KES 9.9 billion from KES 9.3 billion in 2021, in line with increased revenue offset by a higher cost of operations.
Cash generated from operations increased to KES 9.2 billion from KES 8.6 billion due to improved profitability and gains from prudent cash management.
Lastly, Taxes in the form of excise duty, VAT, Pay As You Earn (PAYE), and corporation Tax increased by 3% to KES 18.5 billion, reflecting higher excise duty rates and profitability.
Despite the challenging operating environment characterised by steep and frequent excise tax increases, high inflation, prolonged drought and significant pressure on consumer purchasing power, the company delivered a strong performance.
Sustained investment in our people, a consumer-centric brand portfolio, effective trade partnership and cost efficiencies in our Nairobi-based regional manufacturing hub enable our business to remain competitive.BAT
BAT’s Board of Directors proposed a final dividend for the year ended 31 December 2022 of KES 52 per share to be recommended for approval by shareholders at the annual General meeting to be held on 15 June 2023.
In addition, BAT stated that they are looking forward to making progress on their strategy to build a better tomorrow with their Health, Environment, Social and Governance(HESG) agenda at the centre of their business.