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BATU to pay shareholders Shs10.2bn dividend

 

Elly Karunga BAT board Chairman (middle) at a past BATU event. PHOTO INDEPENDENT/ P. KAGENDA

Kampala, Uganda | THE INDEPENDENT | Cigarette dealer, British American Tobacco Uganda, will pay its shareholders Shs 209per share, translating into Shs 10.2billion as dividend. This is nearly 50% lower compared to Shs 19.9billion paid in 2020 due to a drop in profit.

BATU pays 100% of its profit as dividends to shareholders as the current anti-tobacco law restricts it from any form of corporate social responsibility or advertising to tame cigarette smoking.

BAT Uganda Managing Director, Mathu Kiunjuri said they are happy to have made a profit resulting in a dividend payout to our shareholders amidst the difficult trading environment.

“BAT Uganda’s business fundamentals remain strong, and the company’s commitment to Uganda is unwavering,” he said.

He said notwithstanding the easing of COVID-19 restrictions, there has been slow economic recovery with consumer disposable incomes remaining low which continues to impact product uptake and so is the reduction in sales volume, revenues and profitability.

“(However) we continue to make progress on implementing our strategy to build A Better Tomorrow with our health, environment, social and governance (HESG) agenda at the center of our business,” he said.

BAT Uganda Chairman, Elly Karuhanga said the company believe that a stable regulatory environment is crucial for sustainable business and economic growth.

“Whilst we acknowledge and appreciate the government’s efforts to address illicit trade, more needs to be done. We therefore continue to urge the relevant authorities to enforce the Tobacco Control Laws wholistically across the industry,” he said.

He said the company is optimistic about the future as it is confident about the initiatives in place to secure a better performance and ensure delivery of superior returns for our shareholders.

“With the right products and the right people, working hard to ensure our strategy is executed effectively and efficiently, I look forward to many successful years ahead for our business,” he said.”

 

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