BRITISH American Tobacco (BATU) has posted a 135% rise in net profit of sh4.2b in the first half 2008, a statement of the companyâ€™s unaudited accounts indicates.
â€œThis is mainly as a result of reduced exchange losses in 2008 compared to 2007, business efficiencies and continued benefits of the change in leaf operations,â€ the statement said.
The improved performance was due to the companyâ€™s business strategy of reducing costs and increasing competitiveness. The companyâ€™s net profit was sh31m in the same period last year.
â€œCigarette sales volumes grew by 10% during the first half of 2008 compared to a similar period in 2007. The growth was mainly due to the launch of new brands, improved distribution and reduction in smuggling cigarettes into the country,â€ Isaac Ampeire, the company secretary, said.
Operating profit increased by 15% to sh6.5b from sh5.7b.
However, leaf export volume shipments dropped by 43% compared to the same period last year. The drop was due to higher opening stocks at the beginning of 2007 which resulted into higher shipments. Gross turnover fell to sh85b from sh106b, while tax revenue was sh25b.
BAT-Uganda gets sh4b profits