BAT Kenya Half-Year Results: KSh 10.00 Interim Dividend Signals Earnings Resilience
BAT Kenya Shows Resilience and Growth in First Half of 2025
BAT Kenya plc has reported a strong financial performance for the first six months ended 30 June 2025, demonstrating resilience amidst a challenging economic environment. The company's strategic initiatives and prudent financial management have led to notable improvements across key financial indicators.
Performance Highlights
For the first half of 2025, BAT Kenya achieved a gross revenue of KShs 18.5 billion. The total cost of operations saw a decline of 6% to KShs 7.5 billion, attributed to effective cost management, reduced hard currency input costs, and productivity savings. This efficiency contributed significantly to the 42% increase in profit before tax, which reached KShs 4.3 billion.
Net revenue remained stable at KShs 11.7 billion, driven by strategic pricing in the domestic market, although offset by a lower transactional exchange rate on export revenues. Operating profit increased by 12% to KShs 4.2 billion. A remarkable improvement was noted in interest income, which soared by 114% to KShs 0.1 billion, a stark contrast to an exchange loss of KShs 0.7 billion in the prior period, largely due to the stability of the Kenya Shilling against the US Dollar. Basic and diluted earnings per share stood at KShs 29.83, reflecting the company's enhanced profitability.
The company also generated KShs 3.6 billion in cash from operations, underscoring its strong liquidity position.
Interim Dividend Declaration
In a positive development for shareholders, the Board of Directors of BAT Kenya plc has approved an interim dividend of KShs 10.00 per share for the year ending 31 December 2025. This dividend is scheduled to be paid on or about 26 September 2025, to shareholders registered as of the close of business on 29 August 2025.
- To track upcoming dividends, visit ApexHub Insights - Upcoming Dividends.
What This Means for Investors
The strong financial performance and the declaration of a substantial interim dividend send a positive signal to investors. The significant increase in profit before tax and operating profit indicates effective management and operational efficiency, even in a tough macroeconomic climate. The improved interest income due to Kenya Shilling stability also highlights a more favorable financial landscape for the company.
For investors, the KShs 10.00 interim dividend demonstrates BAT Kenya's commitment to returning value to its shareholders. This consistent dividend payout, combined with robust financial health, positions BAT Kenya as an attractive investment in the Kenyan market. The company's ability to maintain stable net revenue and increase profitability amidst external headwinds suggests a resilient business model capable of navigating market complexities. Investors can look forward to potential long-term value creation given the company's solid performance and shareholder-friendly policies.
- To track upcoming dividends, visit ApexHub Insights - Upcoming Dividends.