British American Tobacco Kenya's H1 pre-tax profit jumps by 14% to 2.56B shillings after cigarette manufacturing contracts bring in higher revenue; gross turnover rises 11% to 16.9B shillings
July 11, 2014
(Business Daily (Kenya))
– British American Tobacco Kenya posted a 14 per cent jump in first-half pre-tax profit to Sh2.56 billion ($29.22 million), thanks to higher revenue from contracts to manufacture cigarettes for other companies.
The firm, a unit of London-listed British American Tobacco, said gross turnover rose 11 per cent to Sh16.85 billion due to an increase in the manufacturing orders. The company makes cigarettes for other firms, as well as its own-brand cigarettes.
Most of its manufacturing contracts are from the Democratic Republic of the Congo. It spent Sh500 million during the period to expand capacity at its Nairobi factory in order to be able to handle the extra orders. Earnings per share rose to Sh17.93 from Sh15.66 , BAT Kenya said.
The region's biggest cigarette maker held its interim dividend at Sh3.50 per share compared with the same period in 2013, it said in a statement.
BAT Plc, the parent company, makes cigarettes, smokeless snus and cigars. The company has over 44 cigarette factories in 39 countries. In addition to cigarettes, BAT Plc makes cigarillos, roll-your-own and pipe tobacco.