By Alois Vinga
Africa-Press – Zimbabwe. BRITISH American Tobacco (BAT) has suffered a 15% cigarette sales decline owing to the ZW$ scarcity which hit the markets during the year’s first half.
The limited circulation of local currency comes on the back of initiatives by the monetary authorities who are saddled with the need to balance between spurring economic growth while containing money supply to choke the parallel market foreign exchange platform whose activities are blamed for triggering economic instability.
Presenting the group’s performance for the period ended June 30 2023 BAT chairman, Lovemore Manatsa bemoaned the impact of ZW$ shortages on sales volumes.
“Cigarette volume sales declined by 15% impacted by the scarcity of the ZW$ across the domestic value chain,” he said.
However, due to optimal cigarette pricing strategies and revenue from cut-rag tobacco exports, gross revenue during the period increased to ZW$71,5 billion.
The cost of sales increased by 89% to ZW$7,4 billion mainly driven by currency devaluation. Cash generated from operations increased by 281% to ZW$36,2 billion driven by working capital management initiatives implemented during the period under review.
“Christelle Supparayen-Romeo and Sivenassen Moodley resigned as Non-Executive Director and Managing Director of the group respectively, effective June 20 2023.
“The group continues to drive robust corporate governance across the Business,” said Manatsa.
Going forward, the company expressed confidence in the continued investment in the simplification of the business model, the consumer-centric brand portfolio and the winning culture to enable the delivery of sustainable shareholder value and contribute to the socio-economic growth and development of the country.
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