KAMPALA, Uganda — British American Tobacco Uganda Ltd. reported an 18% decline in gross revenue for the 2025 fiscal year, as the company struggled against a sharp rise in the illicit cigarette trade.
According to audited results released Feb. 18, gross revenue fell to 67 billion Ugandan shillings, down from 82.1 billion shillings in 2024. Net revenue dropped more significantly, falling 21% to 36.3 billion shillings.
Paul Mbuga, company secretary, issued the report on behalf of the board. The annual general meeting for shareholders is scheduled for July 2.
The company attributed the downturn to lower sales volumes driven by a “soaring prevalence” of tax-evaded cigarettes. Third-party research cited in the report indicated that illicit cigarette incidence reached 45% by the end of December 2025, up from 34% the previous year.
Nearly 1 in every 2 cigarettes smoked in Uganda is now illicit, according to the company. This shift resulted in an estimated annual loss of 53 billion shillings in government revenue.
Despite the drop in sales and a 19% decrease in total comprehensive income to 9.8 billion shillings, the company’s tax contributions rose 4% to 46.4 billion shillings. The increase was driven by capital gains tax following the sale of a non-strategic asset.
The board of directors proposed a final dividend of 199 shillings per ordinary share, a 5% decrease from the 210 shillings paid in 2024. The dividend is subject to withholding tax and is scheduled for payment on July 31 to shareholders on the register as of July 24.
Operating costs for the firm decreased 21% to 24 billion shillings, which the company credited to prudent cost management and lower sales volumes. However, the company’s net asset value saw a significant decline, dropping from 49.3 billion shillings in 2024 to 32.5 billion shillings at the end of 2025.
In its outlook, BAT Uganda called for a multi-agency government approach to enforce tobacco control laws, particularly at the border with South Sudan. The company noted that illicit products often lack digital tax stamps and graphic health warnings, allowing them to be sold at significantly lower prices than legal alternatives.
