British American Tobacco (BAT) South African branch shareholders are set to receive a net dividend of about R10.64 a share.
The giant tobacco group manufactures cigarettes, vapes, and nicotine pouches. This includes popular brands as Vuse vape products, VELO modern nicotine pouches and traditional cigarettes, including Dunhill, Peter Stuyvesant and Rothmans, among others.
The group experienced a 15.8% loss amounting to £4-billion (approximately R94-billion) as they see an increase in smokeless products, which had contributed 19.8% to revenue of £12-billion.
Traditional combustible volumes continue to fall. In South Africa, BAT announced the closure of Heidelberg manufacturing factory, citing that the illicit cigarette trade has taken over 75% of the local market.
READ: British American Tobacco expects drop in cigarettes production
The tobacco group said its November quarterly dividend would be paid on November 6 to shareholders registered on its UK main register, and October 2 for shareholders registered on the South African branch register.
BAT declared an interim dividend of 245.04 pence per ordinary share for the year ended December 2025, which is being paid in four equal instalments of 61.26 pence a share.
For shareholders on the South African branch register, the sterling dividend has been converted into rand based on closing rate on September 17. This translated into gross dividend of about R13.30 per ordinary share.
READ: How to decode Big Tobacco’s illicit trade fiction
BAT said 20% South African dividends tax of 266.07 cents will be withheld from the payment for shareholders who are not exempt. This leaves a net dividend of R10.64 a share.
The dividend is regarded as a foreign dividend for South African dividends tax purposes, with the source of the income being the United Kingdom.
- British American Tobacco South African branch shareholders will receive a net dividend of approximately R10.64 per share.
- BAT experienced a 15.8% loss equivalent to £4 billion, with smokeless products contributing 19.8% to the group's £12 billion revenue.
- The company announced the closure of its Heidelberg manufacturing factory in South Africa due to illicit cigarette trade dominating over 75% of the local market.
- The November quarterly dividend will be paid on November 6 for UK main register shareholders and October 2 for South African branch register shareholders.
- A 20% South African dividends tax of 266.07 cents will be withheld from payments to non-exempt shareholders, with the dividend treated as foreign income from the UK.
