BATU’s profit declines by 20% in 2016
On 10th May 2017, British American Tobacco Uganda (BATU), the makers of Safari and Sportsman cigarettes, reported a 20% decline in its net profits to Ugx 7.8 billion in 2016 down from Ugx 9.8 billion in 2015, hurt by a 7% and 13% decline in cigarette volumes and revenues respectively.
At its 17th Annual General Meeting (AGM) held on Wednesday 10th May 2017, the board of directors recommended a final dividend of Ugx159 per share which was absconded by the company’s shareholders at the same AGM.
Mr DadsonMwaura, the BATU managing director noted that “despite the decline in profits, the company’s spearhead product; Sportsman cigarettes registered a 32% growth rate and 1%volume growth for its global drive brand – Dunhill while delivering a net profit of Ugx7.8 billion.”
“We will pay the dividends in line with the company policy of 100 per cent dividend pay-out. The dividends will be paid on or before June 21 to shareholders on the company’s share register as at the close of business on May 31.” Added DadsonMwaura.
On the Uganda Securities Exchange (USE), BATU registered strong performance posting a share price of Ugx30,000 per share on the USE as at December 31, 2016, compared to Ugx22,980 as at December 31, 2015.