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.
Increased taxation, however, offset sales by eight percent ($9.73 million).
Finance costs declined by 52.6 percent to Ksh82 million ($725,663.71) from Ksh173 million ($1.53 million) during the period under review.
The Nairobi Securities Exchange-listed firm noted that illicit cigarette trade continues to prevail and impact the industry.