The Board of Directors of British American Tobacco (BAT) Kenya plc has announced the unaudited financial results for the six months ended June 30, 2025.
BAT has increased the interim dividend by 100% to Ksh10.00 per share from Ksh5.00 in 2024 after recording Ksh4.3 billion during this period.
The Company said the decision is in line with their commitment to deliver sustained shareholder returns and underscoring solid underlying business performance.
“The interim dividend, which is subject to withholding tax, will be paid on or about September 26, 2025 to shareholders on the register as at the close of business on 29 August 2025,” BAT said.
BAT net revenue remained stable at Ksh11.7 billion driven by the benefit of strategic pricing in the domestic market, offset by the impact of a lower transactional exchange rate on export revenues.
Total cost of operations declined by 6% from Ksh7.9 billion in 2025 to Ksh 7.5 billion.
The Company said the reduction reflects prudent cost management, reduced hard currency input costs on account of lower dollar/Kenya shillings exchange rates and the benefit of productivity savings initiatives.
BAT Kenya earnings
Operating profit increased by 12% from Ksh3.7 billion in 2024 to Ksh4.2 billion, in line with stable net revenue and lower total cost of operations.
Profit before tax increased by 42% from Ksh3 billion in 2024 to KShs 4.3 billion driven by lower finance costs and improved operational efficiency.
BAT recorded Ksh1.3 billion income tax expense resulting in a profit after tax of Ksh2.9 billion.
This is a 39% increase from the Ksh2.1 billion recorded in 2024.
BAT earned an interest income of Ksh0.1 billion representing a significant improvement of 114% compared to an exchange loss of Ksh0.7 billion in the prior period.
“This is attributable to the stability of the Kenya Shilling against the US Dollar during the period,” the Company said.
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Operations Environment and Future Plans
The Board said BAT demonstrated resilience in a tough macro-economic environment across its export and domestic markets, delivering robust underlying performance.
According to the Board, the export markets faced considerable headwinds, including adverse weather conditions, geopolitical tensions and currency devaluation.
It revealed that export sales volume was marginally higher, reflecting the benefit of favourable geographical mix despite these challenges.
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However, reported export revenues were adversely impacted by a lower transactional exchange rate between the Kenya Shilling and United States Dollar.
“We are confident in the resilience of our underlying business, proven strategy and ability to sustainably deliver shareholder value. We remain committed to our corporate purpose to create A Better Tomorrow by building A Smokeless World through offering alternative innovative products, including modern oral nicotine pouches,” the Board said.
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