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[2008-06-03] BATU makes sh6b profit
BRITISH American Tobacco (BATU) has posted a net profit of sh6.1b in 2007 after two years of losses. James Mulwana, the chairman, told shareholders at the annual general meeting at the Sheraton Kampala Hotel that the company had a bright future.
Mulwana explained that the company made the profits because it embarked on new strategies last year that begun from improving leaf operations during production to the market.
The leaf exports grew by 57% in 2007, while cigarette sales grew by 12% as a result of improved distribution and enhanced partnership with the Government in the fight against illicit trade.
Mulwana said the impact of the unstable exchange rates for the US dollar had greatly affected the company.
Most of the expenses, including borrowing, were in dollars, while the daily expenditure was in local currency, which is subjected to foreign exchange fluctuations all the time.
The company also had to employ a financial controller.
