The British American Tobacco, Uganda
Tel: (+256) 312 200 100 | Fax: (+256) 414 256 425
Web: www.bateac.com
Address: P O Box 7100, Kampala, Uganda  BAT shareholders receive record Shs37b dividend After posting its highest net profit since it was listed on the Uganda Securities Exchange, British American Tobacco is paying the entire Shs36.7b profit to shareholders. The shareholders, at an Annual General Meeting (AGM), approved the dividend after the company’s performance.Mr Dadson Mwaura, the managing director BATU, told shareholders that payment is in line with their 100 per cent dividend policy.The bulk of this dividend will be going to British American Tobacco Investments, Precis and Kingsway Fund, all international companies that hold 70 per cent, 20 per cent and 8 per cent shareholding, respectively in BATU. The other 1,301 shareholders will take the remaining 2 per cent of the dividends. Read more ▪  BATU declares no dividends as exorbitant taxes erode profits Exorbitant taxes are not only taking a toll on British American Tobacco Uganda (BATU), a legally licensed tobacco firm, but are also among the reasons why the company’s shareholders will not be entitled to interim dividends.According to unaudited results the company registered a revenue decrease of six per cent, a dip attributed to among others, taxes on tobacco. Equally affected are the profits from operations, which decreased by 50 per cent, as reflected in the half year BATU unaudited accounts.According to BATU, the drop in revenue by six per cent is mainly as a result of timing in export leaf shipments while the decrease in operations profits by 50 percent primarily due to the impact of higher cigarette excise duties following the 43 per cent weighted average rate increase coupled with the imposition of import duties. Read more ▪ The tobacco industry leaders in Uganda have expressed concern about the new legislation to regulate the industry saying it might suffocate tobacco farming and investments in the country.Representatives of the industry have said they support the proposed Tobacco Control Bill 2014 bill but warn that it produces an unintended effect of banning tobacco growing instead of regulating the industry and consumption of cigarettes.They therefore want sections of the bill reviewed before it is passed by Parliament. The industry leaders made the call on Thursday during a meeting with Members of Parliament. It was held at Sheraton Kampala Hotel. Present were nervous tobacco farmers other stakeholders.In 2012/13 tax contributions from the tobacco sector amounted to sh105b and leaf exports earned over sh200b. Over sh81b is paid to farmers in crop purchase and transporters get over sh20b.Jonathan D’Souza, managing director British American Tobacco Uganda said Clause 49 of the Bill seeks to abolish the Tobacco (Control & Marketing) Act without replacing it with any law. Read more ▪ The debate on tobacco consumption and sale in Uganda has taken another twist as the MP for Vurra County in Arua, Dr Sam Okuonzi, called for the amendment of the Tobacco Control Bill (TCB) to allow Uganda continue reaping from the crop.“Tobacco is a health hazard but it is also an economic crop. We need to balance the economy with health to make sure that we get the best out of the two worlds. Tobacco has a big market not just in Uganda but even abroad. There are at least a billion people in the world who are looking and hungering for tobacco,” Mr Okuonzi said while attending the Parliamentary Committee on Health last week. According to the WHO, more than one billion people worldwide will still use tobacco products by 2050, while an estimated 800,000 Ugandan adults currently use it. Read more ▪ Farmers to lose Shs3b as BAT suspends operations in Kigezi More than 709 farming households will be without a steady household income worth about Shs2.7 billion after British American Tobacco Uganda (Batu) announced that they are suspending tobacco growing operations in North Kigezi Area.In a March 21 letter addressed to the Resident District Commissioner Kanungu and copied to the district tobacco inspector and Chief Africulture Officer, Batu managing director Jonathan D’Souza said the decision was mainly driven by higher costs of production.“Due to higher costs of production, tobacco growing has become increasingly less economically viable. This is primarily driven by the increasing cost of wood fuel,” said Mr D’Souza.“We would normally start contacting farmers in the area during May, however due to the economics of this operation, compounded by uncertainty around the sector..., we regret to inform you that we will not be contracting farmers in Kihihi for the 2014/15 season,” he added. Read more ▪ More than 15,000 farmers in the Bunyoro-Mubende and West Nile tobacco growing regions have earned a total of Shs52b from their sales of tobacco to British American Tobacco Uganda (BATU) this year.Following the closure of the buying season in Bunyoro-Mubende, BATU has paid out Shs36b to 10,200 farmers for their crop. This one follows the West Nile buying season, where 4,700 farmers were paid Shs16b. Read more ▪ BATU pays out Shs 36 billion to farmers British American Tobacco Uganda (BATU) has paid out Shs 36 billion to 10,200 farmers in the Bunyoro-Mubende tobacco growing region for their crop, Jonathan D’Souza.The farmers in the districts of Kibaale, Hoima, Masindi, Kiryandongo, Kiboga and Kyankwanzi grew and sold 10 million kilograms to the Tobacco Company in line with their contract commitments.The Company, which is also listed on the Uganda Securities Exchange (USE) invested Shs10 billion in supporting the farmers during the season.Read more ▪    Sudhir sells BATU shares to British investors City business Mogul, Sudhir Ruparelia has sold all his shares in British American Tobacco Uganda (BATU) for nearly twice their market value to British THS Kingsway fund. Sudhir made sh11.8b from the sale of 2,985,726 shares for sh4, 000 per share. The shares were selling at sh2, 600 on two days before. The deal comes hot on the heels of a profit warning by BATU. The company’s financial books indicate a fall in half year after tax profits to sh4.9b from sh8.1b. "The profit warning is a short term thing, the British investors are looking at the long term,” a source privy to the deal said. This is the second biggest deal closed on the Uganda Securities Exchange since the sale of dfcu bank shares to Dutch investors for sh111.9b in May. Read more ▪ |