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BAT reports a rise in net profit to hit Sh2.7bn

NAIROBI, Kenya, Jul 16 -British American Tobacco has recorded a net profit of Sh2.7 billion for the half financial year ended June 30, 2020.
BAT company secretary Kathryne Maundu in a statement announced that the firm saw its profits rise from Sh2.5 billion it recorded in a similar period, despite a tough economic environment hammered by the coronavirus pandemic.
“The company demonstrated resilience amidst the disruption of the COVID-19 pandemic which worsened in already challenging external environment,” said Maundu

However the cigarette maker saw it’s unaudited financial results of it’s gross revenue drop by 13.6 percent to hit Sh16.6 billion from Sh19.2 billion it had registered in June 2019.
“This was driven by lower domestic and export revenue reflecting the adverse economic impact of COVID-19 pandemic and the impact of the excise led price increases at the beginning of the year on consumer affordability and illicit trade incidence in Kenya, ” she added.
On the cost side, BAT spent Sh6.8 billion due to lower sales volumes, productivity, savings initiatives and prudent cost management.
Tax to the government on the other hand in the six months to June droped by Sh1.9 billion to hit Sh7.4 billion in line with lower domestic volumes and changes in tax rates effected by the government to mitigate adverse effects of the COVID-19 pandemic.
“Illicit trade continues to impact industry revenue and deny government in excess of an estimated Sh2.5 billion per annum in revenue, ‘ reads the firm’s statement.
BAT has also retained its interim dividend at Sh3.50 per share.

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