Uganda: BAT Posts Shs3.5 Billion in Profits

Source from:  AllAfrica.com 09/02/2010

Kampala - British American Tobacco shareholders will net month earn Shs70 per share as dividends. The rewards will come on the back of growth in the company's profit after tax to about Shs3.5 billion during the first half of this year compared to Shs1.9 billion earned during the same in 2009. The earnings were announced by Mr Isaac Ampeire, the BATU company secretary on Monday. "The dividend which is subject to withholding tax will be paid on October 10, 2010 to shareholders on the register at the close of business on September 30, 2010," he said in a statement. In Uganda, dividends of shareholders attract withholding tax of 10 per cent. BATU is listed on the Uganda Securities Exchange -the stock market, so, an investor can buy shares at the prevailing market price to be a beneficiary of the dividends before the deadline. On Monday, the BATU share price stood at Shs330. Dividend returns to the shareholders from the company's operations during the first half of 2010 will be higher by more than half the Shs40 which was paid out during the same period last year. Mr Ampeire attributed the improvement in the BATU profitability to an increase in processed leaf tobacco exports to international markets. Earned Shs132b During the year, BATU earned about Shs132 billion as revenue from both leaf exports and cigarette sales in the country according to the unaudited financial results of the company. While leaf tobacco shipments rose by more than a half, cigarette sales declined. "Cigarette sales volumes were lower by 33 per cent during the first half of 2010 compared to similar period in 2009; mainly due to the full impact of retail price increase on the Safari brand undertaken in the last quarter of 2009," Mr Ampeire explained. Enditem