British American Tobacco posts solid earnings in tough operating environment

British American Tobacco Company has managed to post a 2 per cent increase in gross revenue despite facing a tough operating environment in Kenya. The company's gross revenue reached Ksh41.2 billion, showcasing resilience in the face of challenges. However, profits took a hit, declining by 19 per cent to Ksh8 billion. Chrispin Achola, the Managing Director of BAT Kenya, shared insights on the company's performance and the factors influencing their financial results. The business environment in Kenya presented various obstacles, including high taxation and currency devaluation, impacting BAT's profitability. Uncertainties surrounding consumer affordability, increased taxes, and the prevalence of illicit trade were highlighted as key challenges the company faced. Despite these hurdles, BAT Kenya remains focused on innovation and adapting to changing consumer preferences. The company introduced new products like nicotine pouches branded Velo, which have shown promising revenue contributions. With a significant portion of their products destined for export markets, BAT has navigated currency fluctuations by leveraging foreign exchange benefits to offset import costs. Looking ahead, BAT Kenya is proactively addressing risks related to excise duties, regulatory changes, and supply chain disruptions to sustain its business success. By prioritizing consumer affordability, engaging with regulatory bodies, and optimizing operational efficiencies, BAT Kenya aims to reinforce its position in the market and drive sustainable growth.