BAT announced a minimal 3.10% y/y increase in Revenues to KES 40.05Bn lower than our projected 5.0% y/y increase driven by export sales (-2% y/y) declines after regulatory challenges in Uganda and Somalia outweighing muted growth in domestic sales (+1% y/y). However, EPS beat our expectations by growing 17.50% to KES 64.83 on the back of declines in operating expenses (-9.53% y/y) and finance costs (-52.65% y/y). The board of directors proposed a final dividend of KES 50.00 taking the total FY'21 dividend to KES 53.50. As such we revise our target price to KES 521.15 representing an 11.43% upside and total return of 22.79%, inclusive of dividends, on the current share price of KES 468.00 as at 17th February 2022.
