BAT Uganda's '08 Profit Halves on Weak Local Unit

Source from:  Reuters 03/17/2009

British American Tobacco Uganda on Monday said profit slid 51 percent in 2008 compared with 2007, undermined by a weak local unit. Audited results for the east African nation's biggest tobacco grower and processor showed pretax profit fell to 4.62 billion Uganda shillings ($2.28 million) in 2008 from 9.46 billion shillings in the previous year. "The significant depreciation of the shilling in the second half of the year required revaluation of dollar borrowings … leading to significant exchange losses," the company said in a statement. Uganda's shilling fell steeply late last year on the global financial crisis as foreign investors pulled out dollars to cover positions at home. Improved distribution and a government crackdown on illicit trade saw the company's sales volumes increase 8 percent from volumes in 2007, it said. Enditem ($1=2026.0 Ugandan Shilling)