BAT shareholders to pocket Ugx 37billion
The over 1300 shareholders of British American Tobacco (BAT) Uganda have all the reasons to smile. They are set to earn Ugx 36.7 billion as dividends following BAT’s exceptional financial performance for year ended 31 December 2014.
In 2013, the shareholders where paid Ugx 6.9 billion. All shareholders at the close of business on 28th May 2015 will be paid final dividend of Ugx 748 per share. BATU shares on USE are very competitive trading at an average of Ugx 8,525 per share.
The company’s strong performance comes on the back of stronger financial performance in 2014. During the year, the business registered a profit after tax of Ugx 36.8 billion that is 240% higher than Ugx 10.8 billion recorded in 2013.
The company which recently restructured recorded an overall growth in net revenue of 27% from Ugx 213 billion in 2013 to Ugx 270 billion in 2014. Management attributed this growth to increase in both leaf and cigarette volume sales. In his remarks, Fred Tumwesigye, a Non-Executive Director observed that BATU’s performance was affected by the full year impact in 2014 of the 40 percent increase in excise tax on cigarettes that took effect on 1s July 2013, offset by profits from sale of its Kampala Green Leaf Threshing plant Site.
He observed that the industry was also faced a growing incidence of illicit trade estimated at 15% of total cigarette market in Uganda and further depreciation of the Uganda shilling, beside the threat of increasingly stringent regulatory regimes Dadson Mwaura, BAT’s managing Director underpinned the company’s support for regulation of the industry. He however, said the regulation should be reasonable, balanced, evidence-based and enforceable.
‘ ‘We together with the rest of the tobacco industry stakeholders would like to see effective regulation that meets public health objectives, respects our legal rights, does not impede our ability to compete and does not damage live hoods, such as those of farmers, traders and those employed in the sector. We are transparent about what we think and will continue to engage for fair and balanced regulation’’ he added.
Alpha Capital Partners