BAT Kenya posts Ksh25.7bn revenue in FY’24

BAT Kenya, one of the leading tobacco companies in the region, recently announced its full-year 2024 results, revealing a modest 1% growth in net revenue, reaching a total of Ksh25.7 billion. Despite facing a significantly challenging operating environment, the company managed to showcase resilience and strategic maneuvering to mitigate various headwinds throughout the year. In a recent exclusive interview with CNBC Africa, BAT Kenya Managing Director, Crispin Achola discussed the main factors contributing to the 19% decline in profit before tax, emphasizing the impact of foreign exchange losses and challenging market conditions. Achola elaborated on the challenges faced in both domestic and export markets, highlighting key strategies implemented to navigate through the hurdles. The company experienced cost inflation, lower consumer purchasing power, and supply disruptions in the domestic market, along with forex scarcity, adverse weather conditions, and supply chain disruptions in export markets. Despite these challenges, BAT Kenya leveraged smart pricing strategies, cost efficiencies, and product innovations to maintain shareholder value and declare dividends at the same level as the previous year when profitability was higher. Looking ahead, Achola shared insights on future sustainability initiatives and revenue growth opportunities, including productivity initiatives, regulatory advancements for oral nicotine pouches, and anticipated recovery in export markets. The company remains optimistic about the outlook for 2025, buoyed by strategic planning and a commitment to delivering shareholder value.