NSE-listed British American Tobacco Kenya (BAT) has posted a solid rebound in earnings for the year ended 31 December 2025, with profit after tax rising 17 per cent to KSh 5.25 billion, up from KSh 4.48 billion a year earlier.
Pre-tax profit advanced 18 per cent to KSh 7.7 billion, while earnings per share improved to KSh 52.46 from KSh 44.83. The board has proposed a final dividend of KSh 60 per share, bringing the total payout for the year to KSh 70 per share. That translates to roughly KSh 7 billion in distributions, a figure that slightly exceeds the year’s net earnings.
The stronger bottom line came despite a 10 per cent dip in net revenue to KSh 23.2 billion, down from KSh 25.7 billion in 2024. Gross sales, inclusive of indirect taxes, declined to KSh 35.9 billion from KSh 41.1 billion. Management attributed much of the revenue pressure to the surge in illicit cigarette trade, now estimated at 45 per cent of the local market, up from 37 per cent last year.
Exports, which account for about half of total revenue, held steady. Sales of oral nicotine pouches resumed in the second half, helping cushion the slowdown.
Tight cost management proved decisive. Total operating costs fell 15 per cent to KSh 15.7 billion, supported by efficiency measures and lower volumes. Operating profit edged up 2 per cent to KSh 7.48 billion. A swing to finance income of KSh 196 million from a finance cost of KSh 829 million in 2024 further strengthened earnings, aided by currency stability and improved cash stewardship.
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Cash generated from operations reached KSh 8.6 billion, with net operating cash flow at KSh 6.6 billion after tax and interest. Closing cash balances rose 15 per cent to KSh 6.2 billion. Total assets remained largely unchanged at KSh 23.6 billion, while shareholders’ funds stood at KSh 15.5 billion following dividend payments made during the year.
Key Figures
| Metric | 2025 | 2024 | YoY |
|---|---|---|---|
| Gross Sales incl. Indirect Taxes | 35.95 Bn | 41.08 Bn | -12.5% |
| Net Revenue | 23.19 Bn | 25.72 Bn | -9.8% |
| Cost of Operations | 15.72 Bn | 18.40 Bn | -14.6% |
| Operating Profit | 7.48 Bn | 7.31 Bn | +2.2% |
| Finance Income / (Cost) | 196 Mn | -829 Mn | Turnaround |
| Profit Before Tax | 7.67 Bn | 6.48 Bn | +18.3% |
| Profit After Tax | 5.25 Bn | 4.48 Bn | +17.0% |
| Earnings Per Share | 52.46 | 44.83 | +17.0% |
| Net Cash from Operations | 6.64 Bn | 7.83 Bn | -15.2% |
| Cash and Cash Equivalents | 6.22 Bn | 5.39 Bn | +15.4% |
| Current Assets | 13.90 Bn | 13.59 Bn | +2.3% |
| Total Assets | 23.59 Bn | 23.65 Bn | -0.3% |
| Working Capital | 7.70 Bn | 7.57 Bn | +1.7% |
| Shareholders’ Funds | 15.49 Bn | 15.73 Bn | -1.6% |
| Total Dividend Per Share | 70 | 50 | +40.0% |
The numbers paint a familiar corporate paradox. Revenue shrinks, margins hold, profit grows. It is a reminder that in mature industries, survival often hinges less on expansion and more on ruthless discipline. Illicit trade may be gnawing at volumes, but cost control and financial prudence have kept the dividend engine humming.
