Tracing illicit products to source is required to safeguard the legitimate tobacco industry, company executives say Kampala, Uganda | JULIUS BUSINGE | British American Tobacco Uganda (BAT Uganda) shareholders on July.23 approved Shs15.7billion or Shs320 per share as the final dividend for the year ended December 31, 2019.
The dividend was paid on June.19 in line with the company’s 100% dividend pay-out policy amidst the negative impact of the COVID-19 pandemic.
The AGM was held electronically owing to COVID-19 government and World Health Organisation restrictions on public gatherings.
This year marks 20 years since BATU was listed on the Uganda Securities Exchange.
BAT Uganda sells cigarettes chosen by Uganda’s adult smokers with a variety of high quality cigarette brands sold in the market. It partners with over 30,000 trade and businesses in the country.
According to the company’s financial statements for 2019, gross revenue increased by 7% to Shs164.3billion, driven by volume growth owing to a revamped portfolio and improved distribution efficiencies.
Profit from operations increased by 13% to Shs22.4billion as a result of growth in net revenues.
Total cost of operations increased marginally due to inflationary increases and portfolio transformation expenses. Consequently, profit after tax increased by 14% to Shs15.7 billion, according to the financial statements.
BAT Uganda Managing Director, Mathu Kiunjuri said despite the company’s strong performance in 2019, BAT Uganda remains concerned about the impact of illicit trade in tobacco products.
According to independent third-party research, approximately 19% of cigarettes sold in Uganda are illegal.
“These worrying levels of illicit trade not only impact consumers who unknowingly purchase these products but also government revenues and the legitimate tobacco market,” Kiunjuri said.He added that tax-evaded illegal cigarettes continue to deprive the government in excess of an estimated Shs30billion every year.Company executives argued that this lost revenue is desperately needed to support the country’s economic recovery given the adverse impact of COVID-19. Fighting illegal cigarettes As a solution, BAT executives are calling upon the Ugandan authorities to ratify the WHO’s Protocol to Eliminate Illicit Trade in Tobacco products.They said that ratification would provide a robust framework for the implementation of global standards in fighting illicit trade, optimizing benefits of the Uganda Revenue Authority’s Digital Tracking System (DTS) and helping to tackle illicit financial flows.In a statement, BAT Uganda Chairman, Elly Karuhanga commended the BAT Uganda for its resilience and delivering strong business results on the back of a challenging operating environment.“BAT Uganda continues to contribute to Uganda’s socio-economic […]
