British American Tobacco Kenya plc announces Full Year 2016 results

British American Tobacco Kenya plc announced its full year results for the year ended 31 December 2016, posting gross revenues of Shs 36.7 billion, after tax profit of Shs 4.2 billion and a record contribution to Government revenue of Shs 19.2 billion. The company’s shareholders will receive a total dividend of Shs 43 per share.

Commenting on the results, Managing Director of BAT Kenya, Keith Gretton, said:

Managing Director of BAT Kenya, Keith Gretto

“On the domestic market, we grew market share despite the adverse impact of excise led price increases on sales mix. Our global drive brands continue to record a strong performance.

We remain a key player in Kenya’s economy through our tax contributions standing at a record Shs 19.2 billion in the form of Excise Duty, Value Added Tax (VAT), Pay as You Earn (PAYE) and Corporation Tax.

The Nairobi factory remains a manufacturing hub for our operations with over 60 percent of our production supplying 13 countries in the region. In 2016, the export business generated USD 88 million for the Kenyan economy.”

Commenting on the financial performance, BAT Kenya Finance Director, Philip Lopokoiyit said:

“Gross revenue increased by 2 percent to Shs 36.7 billon driven by higher domestic revenues following excise led prices increased offset by lower contract manufacturing costs.  Excise duty and VAT increased by 24 percent to Shs 16.8 billion driven by significantly higher Excise Duty following the implementation of a single tier Excise regime on 1 December 2015.

Our cost of operations reduced by 9 percent to Shs 13.3 billion through stringent cost management, productivity and overheads savings. We undertook a reorganisation in the second half of 2016 which cost Shs 338 million following implementation of new ways of working in the factory and to further mitigate the cost base.

Finance Director, Philip Lopokoiyit

Profit after tax reduced by 15 percent to Shs 4.2 billion, indicating the impact of a decline in net revenue offset by lower costs. Cash generated from operations increased significantly by 41 percent to Shs 8 billion reflecting enhanced working capital management during the year.”

Looking ahead to 2017, Managing Director Keith Gretton said:

“We will continue to invest in a fit for future portfolio and enhance the competitiveness of our factory to deliver sustained value for our shareholders.”