BAT posts double digit growth in profit for half year 2019
Cigarette manufacturer, British America Tobacco (BAT) has reported a Ksh 2.5 billion profit after tax for the half-year ended June 30th, a 25.5 percent growth compared to a similar period last year.
BAT Kenya managing director, MS Beverly Spencer-Obatoyindo said that the cigarette maker’s market share increased by an impressive 3.5%, a growth which was underpinned by the modernization of BAT offers to its consumers.
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“Our manufacturing costs were down by 2 percent, and we are now recycling close to a hundred percent of our waste” added MS Spencer.
However, BAT highlighted some domestic challenges during the half-year period, among them; pressure on consumer spending owing to a 15 percent excise duty hike which impacted affordability of its products.
The other challenge was regulatory uncertainty, where the company said it was engaging the government to provide it with concrete regulatory agendas.
“This year we are targeting savings of close to Ksh 500 Million, which we will re-invest in areas of the business that will drive genuine value growth regionally,” MS Spencer said.
The MD said that BAT was committed to investing in a new Ksh 2.5 Billion factory in Kenya as it prepares to ventures into the production of new distinct nicotine products, among them, e-cigarettes.
The company retaliated that its focus for the 2nd half of the year would be pegged on illicit trade management, regulatory environment, diversifying its investment portfolio and productivity growth.
