KAMPALA – British American Tobacco Uganda Limited has announced its half year results for the
six months ended 30 June 2019; posting gross revenues of UGX 86.2 billion and a
profit before tax of UGX9.7 billion.
Commenting on the results, BAT Uganda Managing Director, Mathu Kiunjuri reported that in the first half of 2019, gross revenue increased by 17%
to UGX 86.2 billion driven by growth in volumes due to distribution efficiencies and portfolio transformation.
“Profit from operations increased by 11% to UGX9.8 billion due to the growth in revenues, partly offset by higher cost of operations.
Accordong the mid year financial statement, of copy of which has been obtained by the website, profit before tax increased by 9% to UGX9.7 billion in line with growth in revenues, offset by finance lease costs recognised in line with revised accounting standards.
“Our contribution to Government revenues in the form of Excise Duty, Value Added Tax and Corporation Tax increased by 19% to Ushs 50.2 billion. However, illicit trade in tax-evaded tobacco products continues to pose a threat to Government revenues and shareholder value.”
On his part, BAT Uganda Chairman, Hon. Elly Karuhanga said the tobacco firm remains committed to building a sustainable partnership with the
Government of Uganda, contributing to economic growth and delivering value for its shareholders.
“Whilst we applaud the Government of Uganda for steps taken to address the cost of doing business in this market, we reiterate that the trade in illicit tax-evaded cigarettes continues to pose a threat to the legitimate tobacco industry and sustainability of Government revenues.
According to third party research findings, the market saw an increase in illicit tax-evaded cigarette sales in the first quarter of this year, standing at 22.2%.
This official say translates to an estimated loss in Government revenue of UGX 30 billion annually.
“We therefore continue to engage the relevant Government agencies to tackle illicit trade in cigarettes and put in place necessary measures to protect legitimate businesses and safeguard government revenues.”