By Our Reporter
Shareholders of British American Tobacco (BAT) Uganda are set to earn a total of Ushs 36.8billion as dividends accruing from the company’s exceptional financial performance in the year ended 31st December2014. In the previous financial year, the company paid Ushs 6.9 billion to its 1,304 shareholders.
Following the performance, the board of directors has recommended a final dividend of Ushs 748 per share compared to Ushs 141 per share paid last year.
In his remarks at the company’s 15th Annual General Meeting held at Sheraton Kampala on 7th May 2015, Dadson Mwaura, the Managing Director BAT Uganda said, the company will pay the dividend in line with its policy of 100% dividend pay-out, subject to withholding tax, on or before June 15th 2015 to shareholders on the register as at the close of business on 28th May 2015.
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In 2014, the business registered a profit after tax of Ushs 36.8 billion that is 240% higher than the Ushs 10.8 billion recorded in 2013. It also recorded an overall growth in net revenue of 27% from Ushs 213 billion in 2013 to Ushs 270 billion in 2014. The growth is attributed to an increase in both leaf and cigarette volume sales.
In his remarks after the meeting, Fred Tumwesigye, a Non-Executive Director on the BAT Board who chaired the AGM on behalf of BATU Board Chairman Elly Karuhanga, observed BATU’s performance was affected by the full year impact in 2014 of the 40% increase in excise tax on cigarettes that took effect on 1st July 2013, offset by the profits from the sale of its Kampala Green Leaf Threshing Plant site. The industry also faced a growing incidence of illicit trade and further depreciation of the Uganda shilling, beside the threat of increasingly stringent regulatory regimes.
“Despite difficult economic factors, the business has registered a strong performance and continues to deliver sustainable business growth.
