BAT profit jumps 1 329%

LETTICIA MAGOMBO

Listed cigarette maker, British American Tobacco  (BAT) Zimbabwe reported a 1 329% rise in profit for the year to December 31, 2021 to ZWL$1,4bn from ZWL$98m reported in the previous year propelled by a growth in volumes.

The jump in profit was also attributed to price reviews and revenue generated from the export of cut-rag tobacco and leaf, board chairman Lovemore Manatsa said in a statement accompanying the company’s financial results.

“The group recorded a positive volume performance for the year under review mainly attributable to increased consumer demand, increased export of cut-rag tobacco, consistent product supply and the easing of the Covid-19 lockdown restrictions,”  Manatsa said.

Revenue for the group  stood at ZWL$4,7bn in the reviewed period from  ZWL$3,3bn  reported in 2020.

Selling and marketing costs, however,  increased to ZWL$614m in the reviewed period from  ZWL$443m reported in the prior year.

“This was mainly driven by trade activations which we carried out during the launch of our brand migration from Everest Menthol to Lucky Strike.

“Other marketing investments and strategic initiatives which were implemented by the group to respond to and satisfy consumer preferences also added to the increase in selling and marketing costs,” Manatsa said.

Total assets for the group stood at ZWL$3,5bn  from ZWL$2,5bn in 2020.

Cash generated from operating activities amounted to ZWL$1bn  in the reviewed period.