BAT Uganda celebrates 20 years of listing on USE

BAT Uganda yesterday celebrated its 20th anniversary of listing on the Uganda Securities Exchange through a bellringing ceremony hosted by the Uganda Securities Exchange (USE).

Following USE’s commencement of trading in 1998, BAT was amongst the first companies to list, which it did through an IPO in 2000.

During the ceremony, BAT Uganda also unveiled its new evolved strategy and purpose as well as a new corporate brand identity.

BAT Uganda Managing Director, Kirunda Magoola said: “Whilst BAT has been on the USE for 20 years, the Company has operated in Uganda for over 90 years. We take pride in this rich history and heritage, on the back of which we have continued to offer sustained and superior value to our shareholders.”

He said as BAT marks its 20th USE anniversary it is an opportune time to touch on what tomorrow holds.

At the function, BAT unveiled an evolved corporate strategy and purpose which is to build “A Better Tomorrow” for its stakeholders.

"This is an ambition to reduce the health impacts of our business by providing adult consumers with a choice of innovative and viable products with reduced risk. Unfortunately, it is not all rosy in our industry. Despite our proven commitment to driving investment and business growth as well as contributing to Uganda’s socio-economic development through sustained tax remittances to the exchequer, we are still grappling with a difficult trading environment. This is most significantly characterised by the illicit trade in cigarettes," Magoola said.

He called upon government to ratify the World Health Organisation (WHO’s) Protocol to Eliminate Illicit Trade in Tobacco Products (ITP).

BAT Uganda chairman, Dr Elly Karuhanga said: “Our business has grown from strength to strength over the last 20 years. Recently, BAT registered a 7% revenue growth to Shs 164.3 billion and a post-tax profit increase of 14 % to Shs 15.7 billion in 2019 compared to 2018. Our superior performance on the USE is also testimony to this. In the last three years alone, we have seen continued growth in dividend pay-outs to our shareholders, with Shs 246 per share at the end of 2017, to Shs 280 per share and Shs 320 per share for end of 2018 and 2019 respectively."

The USE Chief Executive Officer Paul Bwiso said BAT Uganda was the second company to list on the Uganda Securities Exchange (USE) following the divestiture of government in Uganda.

The listing journey of BAT Uganda started on 28th June 2000 when its Initial Public Offer (IPO) opened. A total of 4.9 million shares were offered at Shs 1,000 each. The IPO was oversubscribed by 5 percent and attracted various retail and institutional shareholders. The company was listed on the exchange on October 3 2000.

Over the past 20-years, the company’s share price has grown from an IPO Price of Shs 1,000 to Shs 30,000 per share with market capitalisation of Shs 1.5 trillion. The BAT counter has traded over Shs 28 Billion in turnover over the past 20-years.