AfricaBusiness & FinanceZimbabwe

BAT’s first 9 months revenue up 31% on price hikes and export earnings

By Almot Maqolo

Spread the love

British American Tobacco Zimbabwe says its inflation adjusted revenue rose 31% in the first 9 months of 2020 compared to the same period last year backed by price increases as well as the topline generated from the export of cut-rag tobacco.

The operation environment was challenging owing to the impact of the Covid-19 pandemic, currency depreciation and rising inflation. 

In a trading update, Chairman Lovemore Manatsa said the company has not been spared by these challenging factors which have resulted in the slowdown of economic activity across the country and depressed consumer spending.

“Despite these challenges, the Company continues to review the business model and related strategies in order to ensure the long-term sustainability of the business,” he said.

BAT’s sales volumes for the period under review declined by 8% compared to the same period in prior year. This was attributed to depressed consumer spending and the adverse impact of the Covid-19 pandemic.

The Premium Brand, Dunhill returned to the market and resultantly it recorded a significant increase of 962% versus the same period in prior year. The Aspirational Premium brands, Newbury and Kingsgate volumes declined by 33% compared to the same period in prior year.

Also, the Value for Money segment, (Madison and Everest) and Low Value for Money brand (Ascot), saw a decline of 5% and 43% respectively.

Spread the love
Show More

Leave a Reply

Your email address will not be published.

Back to top button