Kampala, Uganda | ISAAC KHISA | High operating profits coupled with lower financing costs helped the tobacco maker, British American Tobacco, to record a 77% rise in net profit to Shs6.2bn for the half year ending June 30.
The latest financial results shows that the company recorded an increase in the operating profit from Shs 5.3bn in June last year to Shs 8.8bn this year due to lower costs attributable to the absence of one-off incurred costs in the first half of 2017 to support compliance with the Tobacco Control Act, 2015.
On the other hand, financing costs dropped from Shs 291million to Shs 103million during the same period under review.
The Uganda Securities Exchange listed firm recorded a relatively flat revenue of Shs 73.7bn and the value added tax standing at Shs 40.4bn.
Nicholas Edimu, the company secretary on behalf of the Board of Directors said they are still engaging with the government on how to improve the tobacco business environment.
“Our engagement with the relevant government agencies continue to advocate for a more stable taxation regime, reduction in the illicit trade incidence and regulation that are sound, evidence based and that have gone through a formal consultative process, “he said
The firm has declared an interim dividend of Shs 126 per share, up from Shs 71 in the previous year.