Uganda: BAT Pays Shs 22 Billion to Shareholders

Source from:  The Observer (Kampala) 06/01/2012

British American Tobacco (BAT) Uganda's board of directors has confirmed a dividend payment of Shs 450 per share for the year 2011 -bringing the total dividend payment to Shs 22bn to its 1,424 shareholders. Addressing shareholders during the company's Annual General Meeting (AGM) last week, the company's board chairman, James Mulwana, said: "We are inspired by the good results and are pleased that even under the challenging economic times, we are able to see our shareholders enjoy a good return on their investment." According to Mulwana, this has been achieved by minimizing operational costs and increasing productivity through flexibility, creativity and innovation, which has resulted into the company's outstanding performance with a 22 percent increase in operating profits for the year 2011. The dividend, which is subject to withholding tax, will be paid before June 15 to shareholders on the register at the close of business on April 30, 2012. This dividend reflects a 97 percent increase compared to the one paid out in 2010, which was Shs 228 per share. BAT Uganda's good performance also contributed significantly to the economy in foreign exchange earnings to the tune of $48.5 million, and Shs 64bn in taxes, a significant increase from Shs 49bn in 2010. BAT Uganda's managing director Alain Schacher attributed the positive business performance to the launch of a three-year Strategic Leadership Agenda to improve the business sustainability. BAT Uganda currently has 25,000 farmers who produce up to 18 million kilogrammes of tobacco annually. Recently, the company upgraded its system of paying farmers for tobacco leaf from cash payments to commercial bank transactions. "We are promoting payments through banks as a way of encouraging a saving culture, improving financial security within tobacco farming communities," Schacher said. Besides, the company also stepped up its campaign on food security in all the tobacco farming communities. In 2011, the company spent over Shs 300m to procure hybrid maize seeds which were distributed free of charge to all its contracted farmers. Another Shs 200m was spent on procuring food parcels for over 7,000 West Nile-based farmers who were significantly affected by drought. The company markets four cigarette brands: Dunhill, Rex, Sportsman and Safari on the Uganda market, accounting for 80 percent market share. Enditem