BAT Uganda Managing Director, Mathu Kiunjuri during a virtual press conference. British American Tobacco Uganda (BAT Uganda) will give out Shs 15.7 billion (Shs 320 per share) as a first and final dividend to its shareholders for the year ended December 31, 2019.
This is in comparison with Shs 13.7bn as dividends for the previous year where Shs 280 per share was given to the company’s shareholders.
The dividend was approved during a virtual Annual General Meeting (AGM) held Thursday. The meeting ratified Shs 15.7bn and this was paid out on June 19 in line with the company’s 100% dividend pay-out policy.
During a press event on Thursday, BAT Uganda Managing Director, Mathu Kiunjuri said the pay-out was a timely income injection for Ugandan shareholders amidst economic impacts of the COVID-19 pandemic.
Kiunjui revealed that BAT Uganda delivered strong financial results in the year under review.
Gross revenue increased by 7% to Shs 164.3bn, driven by volume growth owing to a revamped portfolio and improved distribution efficiencies.
Profit from operations increased by 13% to Shs 22.4bn as a result of growth in net revenues while total cost of operations increased marginally due to inflationary increases and portfolio transformation expenses.
Profit after tax increased by 14% to Shs 15.7bn.
A revaluation gain of Shs 1.4bn was recognized following an independent revaluation of the Company’s properties in line with its accounting policies.
This year marks 20 years of the Company being listed on the Uganda Securities Exchange (USE).
As has repeatedly been cited previously, Kiunjuri said despite the company’s strong performance in 2019, BAT Uganda remains concerned by the impact of illicit trade in tobacco products.“According to independent third-party research, approximately 19% of cigarettes sold in Uganda are illegal,” he said.“These worrying levels of illicit trade not only impact consumers who unknowingly purchase these products but also government revenues and the legitimate tobacco market”.He said that tax-evaded illegal cigarettes continue to deprive the government in excess of an estimated Ushs 30 billion every year, revenue that is desperately needed to support the country’s economic recovery given the adverse impact of COVID-19.“We call upon the Ugandan authorities to ratify the WHO’s Protocol to Eliminate Illicit Trade in Tobacco Products. Ratification would provide a robust framework for the implementation of global standards in fighting illicit trade, optimising benefits of the Uganda Revenue Authority’s Digital Tracking System (DTS) and helping to tackle illicit financial flows.”BAT Uganda Chairman, Dr. Elly Karuhanga commended BAT Uganda for […]