BAT strategies drive growth
CLOUDINE MATOLA
Zimbabwe’s largest cigarette manufacturer, British American Tobacco (BAT) Zimbabwe, says its strategic initiatives designed to drive growth and maintain stability are yielding positive results, with the company reporting notable progress across its operations.
Company chairman Lovemore Manatsa said BAT had made substantial advances in its key priority areas, including market reach expansion, cost discipline, operational efficiency, and stakeholder engagement and would continue to pursue these strategies throughout the remainder of 2026.
“During the first quarter, the company made solid progress across its strategic priorities, which will continue to guide its focus for the remainder of 2026.
The company broadened its route-to-consumer footprint and deepened distributor partnerships, improving product availability and strengthening its position to capture emerging demand opportunities.
Simplification initiatives and enhanced procurement frameworks delivered meaningful efficiencies in Q1. These measures will remain central to protecting margins in an environment characterised by geopolitical tensions and energy-related pressures.
Investments in automation and supply chain optimisation improved reliability and productivity. These initiatives will be scaled further throughout the year to reinforce operational agility and support sustainable performance.
The company continued to engage constructively with policymakers and industry stakeholders to support regulatory clarity and a predictable operating environment. This engagement will intensify as the company contributes to reforms aimed at fostering stability, enabling investment, and supporting long-term growth,” said Manatsa.
Despite ongoing geopolitical and energy-related challenges, BAT said it remains confident in its resilience and growth prospects within Zimbabwe’s evolving economic environment.
The company also aims to sustain momentum from 2025 and deliver long-term value through a focus on innovation, sustainability, inclusive development, workforce investment, partnerships, and its broader sustainability agenda.
“Looking ahead, the company remains confident in the resilience of its business model and the opportunities arising from Zimbabwe’s evolving operating environment. While geopolitical tensions remain unpredictable and energy constraints are expected to persist, ongoing regulatory reforms and increasing policy stability provide a foundation for sustainable growth.
The company’s commitment to innovation, sustainability, and inclusive development positions it well to navigate uncertainty and deliver long-term value. By continuing to invest in its workforce, strengthening partnerships, and advancing its sustainability agenda, the company aims to build on the momentum achieved in 2025 and carry it forward through 2026 and beyond, ensuring it remains a trusted contributor to Zimbabwe’s economic and social progress,” he said.
Meanwhile, the company reported a flat profit of US$2.7m for the quarter ended March 2026, supported by improved cost efficiency, net turnover (NTO) performance, and stronger operational fundamentals.
Cost of sales rose by 20%, driven by inflationary pressure on imported materials as well as higher manufacturing and logistics costs.
However, sales volumes declined by 4% compared to the prior year, reflecting constrained consumer purchasing power, reduced retail footfall, and an affordability-driven shift in product mix.
