Despite a troubled Ugandan economy, shareholders of British American Tobacco Uganda (BAT Uganda) are set to earn a total of Ushs 7.8 billion as dividends for the year ended 31st December 2016. Following the 2016 financial performance, the Board of Directors recommended a final dividend of Ushs 159 per share which was approved by the Company’s shareholders at its 17th Annual General Meeting (AGM) held in Kampala today.
In his remarks, the Managing Director of BAT Uganda, Mr. Dadson Mwaura, said the company will pay the dividends in line with its policy of 100% dividend pay-out. The dividends will be paid on or before 21st June 2017 to shareholders on the company’s share register as at the close of business on 31st May 2017.
Commenting on business performance, Mr Mwaura said, “In 2016, BAT Uganda overcame a general decline in cigarette volumes and revenues by 7% and 13%, respectively. The Company also maintained a strong market position coupled with 32% volume growth for its flagship brand – Sportsman and 1% volume growth for its global drive brand – Dunhill while delivering a profit after tax of Ushs 7.8 billion.
On revenue performance, he said “the Company did not record any revenues from its Leaf operations following the closure of the Leaf arm of the business in 2014. This was mainly due to a less that optimal return on investment from this aspect of the business. This move consequently improved our financing leverage and registered reduced debt financing costs by 90%.”
BAT remained consistently competitive on the Uganda Securities Exchange (USE), posting a share price of Ushs 30,000 per share on the Uganda as at 31st Dec 2016, compared to Ushs 22,980 as at 31st December 2015.
