British American Tobacco Uganda'' Profits Before Tax Slipped 8.32%

Source from:  East African Business Week 03/18/2014

British American Tobacco Uganda (BATU) profits before tax slipped 8.32% in the last financial year.

This followed the expenses of closing the Kampala Processing plant in June 2013.

According to the financial statement that was released by the company last week, profits also went down as a result of the farmer legal action Ush35 billion (about $13.86 million) pay-out.

'Profits before tax consequently decreased to Ush 15.65 billion ($ 6.2 million) from Ush 17.07 billion ($6.76 million) in 2012. Notably, compared to the provision made for decommissioning and farmer case costs for the company's half year results, the final costs were higher by 30.57%', reads the company statement in part.

But published Audited Financial results for the 2013 show an improvement in the company's revenues.

Revenue went up by 11.36% from Ush 242.5 billion ($ 96.01 million) in the 2012 financial year to Ush270.1 billion ($106.91million) in 2013. They were supported by increasing leaf export volumes and better pricing of exports.

A drop in cigarette sales, the introduction of import duty on imported cigarettes and a 43% weighted average increase in cigarette excise tariffs announced in June 2013 were also cited among the reasons for lower profitability. Contributions to government of Excise Duty, Value Added Tax, Import Duty and Income tax dipped by 13.7% from the 2012 financial year to Ush63 billion ($24.94m) for the 2013. Enditem