BAT Uganda Profits Drop by 53.8 Pct

Source from:  REUTERS 09/22/2009

British American Tobacco Uganda said net income tumbled 53.8 percent to shs1.95 billion for the first half of 2009, down from shs4.21 billion　in the first six months of 2008. Operating profit grew 84 percent for the six months to June, Uganda's biggest tobacco grower and processor said in a statement, but high interest rates and devaluation of the local currency hurt overall profits. However, cigarette sales volumes grew by 8 per cent during the first half of 2009 compared to the previous period, according to the company. "The volume growth was mainly driven by sustained improvement in distribution efficiency and gains from government efforts in curbing illicit trade," the statement said. The company also recorded a drop of 20 per cent in leaf exports in 2009 compared to 2008 due to a change in shipment policy. Enditem