Shareholders of BAT Uganda have approved UGX 10.3 billion (UGX 209 per share) as a first and final dividend for the year ended 31st December 2022, during the Company’s 23rd Annual General Meeting (AGM) held today, 6th July 2023. The dividend, which is in line with the Company’s 100% dividend pay-out policy, will be paid net of withholding tax on 1st August 2023.
During the AGM, the Company also celebrated its 95th year of operation in Uganda.
Mathu Kiunjuri, the BAT Uganda Managing Director, said that while the business’ fundamentals remained solid as evidenced by the company’s sustained investment in the country for 95 years, “the increasing incidence of illicit trade in Uganda remains a major threat to the sustainability of our business going forward”.
“During 2022, the incidence of illicit cigarettes saw a spike, from 23.8% in December 2021 to 29.4% in the same period in 2022. The consequent shrinkage of the legitimate market, significantly impacts the sustainability of Government and industry revenues,” said Mr. Kiunjuri.
“It is estimated that the Government loses up to UGX 30 billion annually to the illicit cigarette trade. Third-party research indicates that most of the illicit cigarettes are being either misdeclared for export but find their way back into the local market, or smuggled in from neighbouring countries and beyond. Uganda is also increasingly becoming a source of illicit cigarettes in regional markets such as Kenya. Additionally, we continue to witness rampant non-compliance with the Tobacco Control Act, 2015 with unscrupulous traders selling cigarettes without the mandated graphic health warnings as well as the sale of flavoured cigarettes,” he added.
While the “illicit trade situation is dire”, Kinjuri applauded the Uganda Revenue Authority (URA) for the significant gains and efforts thus far in fighting the vice, but said that: “for meaningful and lasting impact, it is critical that Government redoubles its efforts, including ramping up multistakeholder and cross-border collaboration to ensure effective enforcement and enhancement of anti-illicit trade regulations.”
Hon. Dr. Elly Karuhanga, the company’s Board Chairman, underscored the company’s socio-economic contribution to Uganda over the 95 years and reiterated the need to fully enforce the “ tobacco control laws across the industry to address the prevalence of non-compliant and illicit tobacco products in the market.”
Inside Uganda’s Property Market: Broll Uganda’s Moses Lutalo on Sector Realities and the Signals Investors Can’t Ignore“We are delighted to mark 95 years since BAT started operations in Uganda. We are proud of our contribution to the socio-economic development of the country, including supporting the livelihoods of over 30,000 Ugandans in our value chain, delivering sustained value to approximately 1,200 local (East African) shareholders and through sustained payments to the exchequer as one of Uganda’s leading taxpayers. As we work to accelerate the transformation of our business going forward, we will continue to contribute transparently to the national dialogue on sustainable fiscal and regulatory frameworks, “ he said.
“Looking ahead, I am certain that we have the right strategy, people and products, to continue delivering sustained value for our shareholders and build A Better TomorrowTM for our stakeholders,” Karuhanga concluded.
About BAT Uganda
BAT Uganda is a member of the BAT Group, a leading multi-category consumer goods business, with brands sold in more than 180 markets. BAT began operations in Uganda in 1928. BAT Uganda has been listed on the Uganda Securities Exchange (USE) since 2000 and has 1,232 shareholders, of whom approximately 1,208 are local (East Africa) shareholders.
The Company is in the business of distribution and sale of cigarettes in Uganda.
