, NAIROBI, Kenya, Feb 28 – British American Tobacco (BAT) Kenya has recorded a 13 percent increase in net profit to Sh3.72 billion in 2013 full year results from Sh3.2 billion recorded in 2012.
Gross turnover increased by 5 percent to Sh31.9 billion from Sh30.5 billion recorded in 2012 while operating profit grew by 13 percent to Sh5.7 billion driven by revenue growth and productivity savings.
Contribution to government revenue went up by 11 percent to Sh14.5 billion with the increase driven by improved domestic performance and by concerted efforts on mitigating illicit trade with the support of relevant government agencies.
Net revenue increased slightly by 1 percent to Sh19.6 billion from Sh19.4 billion recorded in 2012 with 56 percent of net revenue from domestic business recording Sh10.9 billion while exports recorded Sh8.7 billion.
The firm’s Managing Director Chris Burrell announced that its subsidiaries in Uganda has closed its green leaf plant in Kampala as well its subsidiary in DRC Congo whose factory is set to stop its operations next month in bid to improve effectiveness and reduce costs.
“In June 2013 BAT Uganda announced the closure of our green leaf plant in Kampala which has been integrated and consolidated into our Thika plant. Also, manufacturing in Kinshasa will cease from March and the bulk of the volume for the Congolese market will be provided by our Nairobi factory,” he said.
The company invested over Sh1 billion in the period under review in the Nairobi manufacturing hub to enhance capabilities and drive cost competitiveness of the factory.
The company seeks to engage the government on an optimal excise regime.
“As BAT we feel that a single tier excise regime is the optimal excise regime for Kenya. We are not there yet and it is important to note that where there are shocks on increase there is a direct correlation with increases in illicit trade,” he said.
He noted that Western Kenya and Rift Valley markets have been problematic due to an overwhelming increase in illicit trade.
The firm’s directors have recommended a final dividend of Sh33.50 per ordinary share.