BUREAU CHIEF
KAMPALA –Hey there! Exciting news for shareholders of BAT Uganda! They recently approved a handsome dividend payout of Shs 10.3 billion (that’s Ushs 209 per share) during the company’s 23rd Annual General Meeting held on July 6. This dividend, following their 100% dividend pay-out policy, will be paid out to shareholders on August 1, 2023, after deducting the withholding tax.
On top of this great news, the AGM was also a special occasion as BAT Uganda celebrated its remarkable 95th year of operation in Uganda. Quite an achievement, right?
During the meeting, Mathu Kiunjuri, the Managing Director of BAT Uganda, addressed some concerns. He acknowledged that while the company’s business fundamentals remain strong, they face a growing problem of illicit trade in Uganda. The incidence of illicit cigarettes has spiked from 23.8% in December 2021 to 29.4% in the same period in 2022. This not only poses a threat to the sustainability of their business but also impacts the government and industry revenues due to the shrinkage of the legitimate market.
It’s estimated that the government loses up to Shs 30 billion each year to the illicit cigarette trade. Research suggests that most of these illicit cigarettes are either misdeclared for export and find their way back into the local market, or they are smuggled in from neighboring countries and beyond. Uganda has even become a source of illicit cigarettes in regional markets like Kenya. Moreover, there’s a rampant non-compliance issue with the Tobacco Control Act of 2015, with unscrupulous traders selling cigarettes without the required graphic health warnings and even offering flavored cigarettes.
Despite the concerning situation, Kiunjuri believes that the Uganda Revenue Authority (URA) has made significant progress so far. However, to make a lasting impact, the government needs to step up its efforts. This includes strengthening collaboration among various stakeholders across borders to ensure effective enforcement and enhancement of anti-illicit trade regulations.
On another positive note, Hon. Dr. Elly Karuhanga, the Chairman of BAT Uganda, expressed great delight in reaching the milestone of 95 years of operations in Uganda. He emphasized the company’s contribution to the country’s socio-economic development, such as supporting the livelihoods of over 30,000 Ugandans in their value chain. They’ve also delivered sustained value to approximately 1,200 local (East African) shareholders and have been one of Uganda’s leading taxpayers. Moving forward, BAT Uganda aims to accelerate the transformation of its business while actively participating in discussions on sustainable fiscal and regulatory frameworks. The urgent need for full enforcement of tobacco control laws across the industry is a priority to tackle the prevalence of non-compliant and illicit tobacco products in the market.
Looking ahead, Karuhanga is confident that BAT Uganda has the right strategy, talented people, and innovative products to continue delivering sustained value for their shareholders and build a better future for all stakeholders. Exciting times lie ahead!
Just a little background on BAT Uganda: It’s a member of the BAT Group, a prominent consumer goods business operating in more than 180 markets. BAT first started its operations in Uganda way back in 1928. Since 2000, BAT Uganda has been listed on the Uganda Securities Exchange (USE) and boasts 1,232 shareholders, with the majority being local (East African) shareholders. They primarily focus on the distribution and sale of cigarettes within Uganda. With a strong heritage, renowned brands, innovative product offerings, and a talented workforce, BAT Uganda continues to make progress and build on its success.
