BATU posts Shs7.8 billion shareholder profits

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Downside. Mr Fred Tumwesigye, the nominated chairman for this year’s AGM, said the business performance was affected by the economic downturn which is evidenced by an indicative 30 basis point drop in the GDP growth rates from 2015 to 2016. Others were a slowdown in agriculture, cutbacks in fiscal expenditure, reduction in cross border commerce and a depreciation of the Shilling.

Kampala. British American Tobacco Uganda (BATU) has registered a 20 per cent decline in profitability from a Shs15 billion profit before tax in 2015 to Shs11 billion profit before tax in 2016. This generated a net profit of Shs7.8 billion after tax in 2016 down from Shs9.8 billion in 2015.
Following this the board of directors recommended a final dividend of Shs159 per share which was approved by the company’s shareholders at its 17th Annual General Meeting (AGM) held in Kampala on Wednesday. Last year the board recommended a dividend share price of Shs413.
Mr Dadson Mwaura, the BATU managing director said the company will pay the dividends in line with its policy of 100 per cent dividend pay-out. The dividends will be paid on or before June 21 to shareholders on the company’s share register as at the close of business on May 31.

Mr Mwaura said BATU overcame a general decline in cigarette volumes and revenues by 7 per cent and 13 per cent, respectively. The company also maintained a strong market position coupled with 32 per cent volume growth for its flagship brand - Sportsman and 1 per cent volume growth for its global drive brand - Dunhill while delivering a profit after tax of Shs7.8 billion.”
“Our share performance has remained consistently competitive on the Uganda Securities Exchange (USE), posting a share price of Shs30,000 per share on the USE as at December 31, 2016, compared to Shs22,980 as at December 31, 2015,” Mr Mwaura said.
BATU registered a 4 per cent increase in tax remittances from Shs71b in 2015 to Shs74b in 2016.