BUSINESS REPORTER
BAT Zimbabwe’s sale volumes were down 8% in the nine months to September on depressed consumer spending and the adverse impact of the Covid-19 pandemic.
In a trading update for the period, board chairman Lovemore Manatsa said the challenging trading environment characterised by the impact of the Covid-19 pandemic, currency depreciation and rising inflation impacted on the cigarette manufacturer.
“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 longterm sustainability of the business,” Manatsa said.
Premium brand, Dunhill, saw its volumes up 962% versus the prior year. Volumes for the aspirational brands—Newbury and Kingsgate— declined by 33% compared to same period in prior year.
The value for money segment (Madison and Everest) and low value for money brand (Ascot) saw a decline of 5% and 43% respectively.
Manatsa said net turnover increased by 31% in inflation-adjusted terms during the period under review despite a dip in volume attributed to price increases taken during the period as well as revenue generated from the export of cut-rag tobacco. In the outlook, Manatsa said the company believes that it will deliver value growth for its shareholders despite projected challenging trading conditions.
“The foreign currency auction platform has opened access to foreign currency required for raw materials imports and has brought about stabilisation of the exchange rate which will alleviate some of these challenging trading conditions,” Manatsa said.
