Home / Business / BAT Uganda revenue slumps 18% as illicit cigarettes bite profits
The Independent March 3, 2026 Business, In The Magazine
The board of directors proposed a final dividend of Shs 199 per share, down 5% from Shs 210 in 2024, payable July 31 to shareholders on record as of July 24
Kampala, Uganda | THE INDEPENDENT | British American Tobacco Uganda Ltd. saw gross revenue fall 18% in the 2025 fiscal year as the company grappled with a surge in illicit cigarette sales, according to audited results released Feb. 18.
Gross revenue dropped to Shs 67 billion ($17.8 million) from 82.1 billion in 2024, while net revenue slid 21% to 36.3 billion shillings.
The company attributed the decline to a “soaring prevalence” of tax-evaded cigarettes, citing third-party research showing illicit cigarette penetration at 45% by December 2025, up from 34% the previous year. Nearly one in every two cigarettes smoked in Uganda is now illicit, the company said, translating into an estimated 53 billion-shilling annual loss in government revenue.
Total comprehensive income fell 19% to Shs 9.8 billion Yet, tax contributions rose 4% to 46.4 billion shillings, supported by capital gains from the sale of a non-strategic asset. Operating costs fell 21% to 24 billion shillings due to lower sales volumes and tighter cost management. Despite these efficiencies, net asset value dropped sharply to Shs 32.5 billion from Shs 49.3 billion in 2024.
The board of directors proposed a final dividend of Shs 199 per share, down 5% from Shs 210 in 2024, payable July 31 to shareholders on record as of July 24.
BAT Uganda called for a multi-agency government response, particularly at the South Sudan border, to tackle illicit imports. The company noted that contraband products often lack digital tax stamps and graphic health warnings, allowing them to be sold at steeply discounted prices.
Paul Mbuga, company secretary, said the figures highlight the dual challenges facing legal tobacco firms: protecting revenue streams while advocating for stronger regulatory enforcement to curb smuggling and safeguard public health.
