Uganda: BATU to Pay its Highest Dividend

Source from:  The Observer 05/14/2015

British American Tobacco (BAT) Uganda has announced that it will pay out Shs 36.8bn or Shs 748 per share in dividend for 2014, its highest ever.

The pay-out is an improvement from the dividend of Shs 6.9bn or Shs 141 per share that the company gave to its 1,304 shareholders for 2013.

Fred Tumwesigye, BATU's non-executive director, said the company would pay out the dividend by June 15 to any shareholder who will be on BATU's book by May 28. He was speaking during the company's annual general meeting last week.

"The dividend payment comes on the back of strong financial performance by the company last year," he said. BATU registered a profit after tax of Shs 36.7bn for 2014 compared to Shs 10.8bn recorded in 2013.

Tumwesigye also said the company recorded a growth in the sales for leaf and cigarettes. Dadson Mwaura, BATU's managing director, told the press after the AGM that while BATU recorded an increase in revenue, the company was affected by the 40 per cent increase in excise tax on cigarettes that was introduced in 2013.

"We, together with the rest of the tobacco industry stakeholders, would like to see effective regulation that meets public health objectives, respects our legal rights, and does not impede or damage livelihoods of farmers, traders and those employed in the sector," he said.

Mwaura observed that the company was transparent and would continue to advocate for fair and balanced regulation. BATU paid Shs 69bn in excise and value added tax in 2014, which was a 21 per cent increase compared to the 2013 figure.

BATU's share on the Uganda Securities Exchange is trading at the highest price compared to any other locally-listed firm; it is currently going for Shs 8,525. Enditem