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BAT FY15 PAT Ksh. 5Bn earnings up 17%
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Aguytrying
#11 Posted : Friday, February 26, 2016 5:25:34 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
moneydust wrote:
mulla wrote:
Pesa Nane wrote:
Aguytrying wrote:
Someone explain to me like a 2 year old. Why does this company pay out all its profits as dividends? Doesn't it need money for renovations, maintenance and expansion?

Seem to be taken care of...

Quote:
In 2015, the Company completed the roll out of a new instance of SAP, our Entreprise Resource Planning platform. This is in line with our strategy to simplify business structures and further integrate processes. Anticipated benefits include enhancing business information for decision making and providing opportunities for further cost savings.


@aguytrying.....Even me I don't understand. The purpose of a company is to make profits so if you dish out everything you make what's your purpose??


They have already achieved their purpose by making the huge profits..dishing out all the profits in dividends just means they dont need the money.It is also a sign of how confident they are of their business ie They will always make money to pay a dividend


That's very wishful thinking from them. Even 1 bn could tucked away for a rainy day. Or the reserves are also too many. Hope it has nothing to do with the main shareholder using it as a cash cow, anyway as long As it is fed properly And taken to hospital when sick. We cant complain. 400-500 on this stock is a mirage. Wacha wakio ndani wa enjoy
The investor's chief problem - and even his worst enemy - is likely to be himself
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murchr
#12 Posted : Friday, February 26, 2016 5:33:00 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
Aguytrying wrote:
moneydust wrote:
mulla wrote:
Pesa Nane wrote:
Aguytrying wrote:
Someone explain to me like a 2 year old. Why does this company pay out all its profits as dividends? Doesn't it need money for renovations, maintenance and expansion?

Seem to be taken care of...

Quote:
In 2015, the Company completed the roll out of a new instance of SAP, our Entreprise Resource Planning platform. This is in line with our strategy to simplify business structures and further integrate processes. Anticipated benefits include enhancing business information for decision making and providing opportunities for further cost savings.


@aguytrying.....Even me I don't understand. The purpose of a company is to make profits so if you dish out everything you make what's your purpose??


They have already achieved their purpose by making the huge profits..dishing out all the profits in dividends just means they dont need the money.It is also a sign of how confident they are of their business ie They will always make money to pay a dividend


That's very wishful thinking from them. Even 1 bn could tucked away for a rainy day. Or the reserves are also too many. Hope it has nothing to do with the main shareholder using it as a cash cow, anyway as long As it is fed properly And taken to hospital when sick. We cant complain. 400-500 on this stock is a mirage. Wacha wakio ndani wa enjoy



Wishful thinking yet they've been doing it for years?
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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jerry
#13 Posted : Friday, February 26, 2016 6:23:38 PM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
mulla wrote:
Pesa Nane wrote:
Aguytrying wrote:
Someone explain to me like a 2 year old. Why does this company pay out all its profits as dividends? Doesn't it need money for renovations, maintenance and expansion?

Seem to be taken care of...

Quote:
In 2015, the Company completed the roll out of a new instance of SAP, our Entreprise Resource Planning platform. This is in line with our strategy to simplify business structures and further integrate processes. Anticipated benefits include enhancing business information for decision making and providing opportunities for further cost savings.


@aguytrying.....Even me I don't understand. The purpose of a company is to make profits so if you dish out everything you make what's your purpose??

My problem is very different. Why do people smoke so that BAT can make profit? Someone said smoking is a luxury and that's the reason for high taxation in cigarettes. Does it mean we are so reach that we'll always have something to spare for luxurious things like smoking?
The opposite of courage is not cowardice, it's conformity.
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Pesa Nane
#14 Posted : Friday, February 26, 2016 7:02:01 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
Aguytrying wrote:
moneydust wrote:
mulla wrote:
Pesa Nane wrote:
Aguytrying wrote:
Someone explain to me like a 2 year old. Why does this company pay out all its profits as dividends? Doesn't it need money for renovations, maintenance and expansion?

Seem to be taken care of...

Quote:
In 2015, the Company completed the roll out of a new instance of SAP, our Entreprise Resource Planning platform. This is in line with our strategy to simplify business structures and further integrate processes. Anticipated benefits include enhancing business information for decision making and providing opportunities for further cost savings.


@aguytrying.....Even me I don't understand. The purpose of a company is to make profits so if you dish out everything you make what's your purpose??


They have already achieved their purpose by making the huge profits..dishing out all the profits in dividends just means they dont need the money.It is also a sign of how confident they are of their business ie They will always make money to pay a dividend


That's very wishful thinking from them. Even 1 bn could tucked away for a rainy day. Or the reserves are also too many. Hope it has nothing to do with the main shareholder using it as a cash cow, anyway as long As it is fed properly And taken to hospital when sick. We cant complain. 400-500 on this stock is a mirage. Wacha wakio ndani wa enjoy


@aguy
1. Retained Earning grew to Ksh 6.4Bn from Ksh. 5.6Bn (tucking away)
2. Roll out of SAP (investing in IT and efficiency tools)
3. Pay out ratio was only 18% at HY (Rainy day prudence)
4. Unbelievable profit margins (must rain again tomorrow) ie
-Operating profit margin - 42.3% (was 60.6% previous year)
-Pre tax margin - 39.2%
-PAT margins - 27.3%

Figures D&B
Pesa Nane plans to be shilingi when he grows up.
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Gatheuzi
#15 Posted : Friday, February 26, 2016 8:03:20 PM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
jerry wrote:
mulla wrote:
Pesa Nane wrote:
Aguytrying wrote:
Someone explain to me like a 2 year old. Why does this company pay out all its profits as dividends? Doesn't it need money for renovations, maintenance and expansion?

Seem to be taken care of...

Quote:
In 2015, the Company completed the roll out of a new instance of SAP, our Entreprise Resource Planning platform. This is in line with our strategy to simplify business structures and further integrate processes. Anticipated benefits include enhancing business information for decision making and providing opportunities for further cost savings.


@aguytrying.....Even me I don't understand. The purpose of a company is to make profits so if you dish out everything you make what's your purpose??

My problem is very different. Why do people smoke so that BAT can make profit? Someone said smoking is a luxury and that's the reason for high taxation in cigarettes. Does it mean we are so reach that we'll always have something to spare for luxurious things like smoking?

Wrong. Smoking is a disease and with no easy cure for that matter. BAT has enough patients to keep it "healthy" for a long time.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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shocks
#16 Posted : Friday, February 26, 2016 10:29:07 PM
Rank: Member

Joined: 3/15/2009
Posts: 362
Aguytrying wrote:
Someone explain to me like a 2 year old. Why does this company pay out all its profits as dividends? Doesn't it need money for renovations, maintenance and expansion?

depreciation and amortization charges take care of renovations and maintenance I think they are not too keen on expansion.
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Chaka
#17 Posted : Saturday, February 27, 2016 9:52:09 AM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Gatheuzi wrote:

Wrong. Smoking is a disease and with no easy cure for that matter. BAT has enough patients to keep it "healthy" for a long time.

a cigarette is the "medicine" for the chronic "disease" called smoking..
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  | | Edit by user: Saturday, February 27, 2016 10:02 AM | Reason: Not specified
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