BAT Kenya 2025 Results Breakdown

Why BAT Remains NSE’s Longest-Standing Dividend King (And How Smart Investors Still Make Capital Gains)

By My Wealth Guide KE

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📌 Introduction

British American Tobacco Kenya Plc (BAT Kenya) has released its audited results for the year ended 31 December 2025.

Despite revenue pressure caused by rising illicit trade, the company delivered:

• Higher profits
• Stronger earnings per share
• Increased dividends
• Improved cash position
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This confirms what many experienced NSE investors already know:

BAT is one of the most consistent dividend-paying stocks in Kenya’s market history.

But beyond dividends — there is also capital gains opportunity if you understand how to trade it strategically.

📊 BAT Kenya 2025 Financial Summary 

Item	2025	2024	Change
Net Revenue	23.2 Bn	25.7 Bn	-10%
Operating Profit	7.5 Bn	7.3 Bn	+2%
Profit Before Tax	7.7 Bn	6.5 Bn	+18%
Profit After Tax	5.25 Bn	4.48 Bn	+17%
Earnings Per Share (EPS)	52.46	44.83	+17%
Total Dividend Per Share	70	50	+40%
Closing Cash Position	6.2 Bn	5.4 Bn	+15%

📈 What Happened in 2025?

1️⃣ Revenue Declined (-10%)

Revenue fell due to:

• Illicit cigarette trade now at 45% of market
• Reduced domestic sales volumes

Illicit trade remains the biggest structural threat to BAT.

2️⃣ Profits Increased Strongly

Even with lower revenue:

• Costs dropped by 15%
• Finance income improved (no major forex losses)
• Strong export sales (~50% of revenue)
• Oral nicotine pouch sales resumed in H2

This pushed:

• Profit Before Tax up 18%
• Profit After Tax up 17%
• EPS up 17%

This shows strong operational discipline.

💰 Dividend – Why BAT Is the NSE Dividend King

Total dividend declared: Final Divided: Ksh 60, Interim Ksh 10 (Already paid), KSh 70 per share full year

This is:

• One of the highest consistent payouts on the NSE
• 40% higher than 2024
• Backed by strong cash flow

Dividend payout total: KSh 7.0Bn
Profit after tax: KSh 5.25Bn

Yes — payout is slightly above earnings, meaning part came from retained earnings.

But BAT has historically maintained strong reserves and disciplined capital structure.

This is why many long-term income investors consider BAT the longest-standing reliable dividend stock on the NSE.

🏦 Balance Sheet Strength

• Shareholders’ funds: KSh 15.5Bn
• Cash: KSh 6.2Bn (improved)
• Low long-term debt
• Strong working capital

This is a financially stable, cash-generating business.

🧠 How Smart Investors Make Money With BAT

🔹 Strategy 1: Dividend Yield Strategy

• Buy when dividend yield becomes very attractive
• Accumulate during market fear
• Position before book closure (if momentum builds)

Hold for dividend + potential price recovery.

🔹 Strategy 2: Price Cycle Strategy

BAT typically:

• Falls after book closure
• Consolidates
• Recovers gradually
• Spikes during yield hype cycles

Experienced traders:

• Accumulate during weakness
• Sell into strength
• Re-enter during pullbacks

BAT rewards patience — not chasing spikes.

🔹 Strategy 3: Long-Term Wealth Compounding

If you reinvest BAT dividends yearly:

• You compound income
• You increase share count
• You benefit from capital appreciation cycles

This is slow wealth building — but powerful.

⚠️ Risks to Watch

• Illicit trade expansion (45% market share)
• Regulatory tightening
• Volume decline
• Dividend sustainability if profits shrink

🎯 Final Verdict

• Revenue pressure exists
• Strong profit growth
• Excellent cost control
• Massive dividend increase
• Strong balance sheet

This is not a hype stock.

This is a mature cash-generating company with regulatory risk — but very strong income profile.

📌 Who Should Consider BAT?

• Dividend investors
• Conservative wealth builders
• Portfolio stabilizers
• Tactical traders who understand yield cycles

Not ideal for:

• Short-term momentum chasers
• High-growth seekers

🔥 My Wealth Guide KE Take

BAT remains:

• NSE’s longest-standing dependable dividend counter
• A strong income stock
• A tactical capital gains opportunity if price cycles are respected

Buy fear. Sell strength. Reinvest dividends. Play liquidity — not emotion.

📲 For deeper breakdowns and trading strategy guidance:

WhatsApp: 0723384775
Free training available.

My Wealth Guide KE
Independent Research. Education First.