Cigarette plant on the BAT manufacturing unit. FILE PHOTO | NMG

Cigarette producer BAT Kenya has reported a 6.3 % internet revenue progress to Sh6.89 billion within the yr ended December 2022, the third consecutive yr of improved efficiency.

The corporate proposes to pay its shareholders a remaining dividend of Sh52 per share. When added to the Sh5 interim dividend for the six-month to June interval, it brings the whole payout to Sh57 per share, the best BAT has paid in its historical past.

The dividend can be paid on or about June 15 to shareholders on its register by Might 26.

The entire dividend payout will quantity to Sh5.7 billion, up from Sh5.35 billion final yr.

The cigarette maker’s outcomes launched on Thursday confirmed the online revenue improved from Sh6.48 billion final yr as income grew.

Complete income rose by eight % from Sh25.43 billion to Sh27.38 billion, pushed by progress in export volumes and a pricing profit on home and export gross sales.

BAT’s working prices elevated by 9 % to Sh17.5 billion, with the Nairobi Securities Change-listed agency linking this to increased enter prices.

“The corporate delivered a powerful efficiency regardless of the difficult working setting characterised by steep and frequent excise tax will increase, excessive inflation, extended drought and important strain on shopper buying energy,” stated BAT.

The cigarette maker outcomes present that it collected Sh14.87 billion as excise obligation and worth added tax (VAT) on behalf of the Kenya Income Authority (KRA), in contrast with Sh14.62 billion within the earlier yr.

The excise obligation and VAT, added to pay-as-you earn and company tax, took complete tax funds to Sh18.5 billion, a rise of three % on increased excise obligation charges and elevated earnings.

BAT says the excise obligation tax charge has, between November 2021 and November final yr, elevated by 21.3 %, piling strain on shoppers.

The agency says the tax hikes have seen clients downgrade to lower-priced manufacturers and fuelled elevated illicit commerce in tax-evaded cigarettes.

BAT defined that third-party analysis confirmed illicit commerce is now at 26 %, denying KRA about Sh6.5 billion yearly attributable to a shrinking official market.

“We proceed to name for elevated sources and enforcement to be deployed by the federal government in opposition to illicit commerce in tobacco merchandise,” stated BAT.

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