BAT Kenya's First Half Pretax Profit Up 14.2 pct

Source from:  Reuters 07/08/2011

NAIROBI, July 7 (Reuters) - British American Tobacco Kenya posted a 14.2 percent rise in pretax profit for the first six months of the year, buoyed by higher sales. Pretax profit rose to 1.6 billion shillings ($17.83 million) from 1.4 billion shillings in the six months ending June 2011, the company said. Gross turnover rose by 50 percent to 9 billion shillings from 6 billion shillings in same period of a year before, while total turnover rose by 3.1 billion shillings to 9 billion shillings, the cigarette manufacturer said. "Profit before tax improved by 14 percent reflecting higher domestic and export volumes, the impact of cut rag (semi-processed leaf) exports offset by lower domestic pricing and resultant margins arising from the need to protect our competitive position," BAT said in a statement. The company said underlying revenue on domestic and export cigarettes grew 15 percent reflecting higher total volumes coupled with an exchange rate benefit on exports revenue. Earnings per share rose to 11.65 shillings from 10.23 shillings in the first half of 2010, the company said. BAT has proposed to pay an interim dividend of 3.50 shillings per 10 shillings ordinary share. Enditem