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[2008-07-22] BAT profits grow despite high taxes
British American Tobacco (BAT) has announced five per cent growth in pre-tax profits for the six months period ending June 30 as analysts predict better earnings despite tax hikes and a ban on smoking.
The cigarette maker’s profits before tax grew marginally to Sh1.128 billion from Sh1.078 in a similar period last year.
Gross turnover jumped 16 per cent to Sh8.2 billion from Sh7.1 billion while Excise duty and VAT increased 28 per cent to Sh3.5 billion from Sh2.8 billion over the same period. Income tax expenses grew four per cent to Sh338 million from Sh325 million.
"The six month period to June 30 was extremely challenging following post-election turmoil. Inflation rates rose to levels unseen in the recent past putting further pressure on businesses across the country," the company said in a statement yesterday.
During the period under review, contract manufactured volumes grew by three per cent while domestic sales volume remained flat.
