BAT Zimbabwe hit by 22% revenue plunge
LIVINGSTONE MARUFU
Zimbabwe’s largest cigarette maker, British American Tobacco Zimbabwe (Holdings) Limited (BAT Zimbabwe), has reported a sharp 22% drop in revenue for the nine months to September 30, 2025, as declining consumer spending, subdued demand and pricing changes squeezed its topline despite the country’s year-long period of relative macroeconomic stability.
Sales volumes slid 7% to 593m sticks, driving cigarette revenue down to US$21m, even as BAT swung back to profitability from a loss recorded in the comparable period last year.
Zimbabwe has experienced more than a year of steady exchange rate conditions and manageable inflation, but BAT Zimbabwe chairman Lovemore Manatsa said stability alone had not been enough to shield the business from persistent economic pressures.
“The company’s external operating environment remained dynamic yet relatively stable, supported by steady inflation levels and exchange rate stability resulting from ongoing monetary policy interventions. Despite this, the operating landscape continued to face challenges including liquidity constraints, elevated borrowing costs, and persistent power outages that affected industrial productivity,” Manatsa said in the trading update.
He said the business remained resilient, anchored by a long-term strategy focused on delivering sustained stakeholder value despite the prevailing headwinds.
Manatsa said the 7% slide in volumes and 22% revenue contraction were driven by “stretched consumer spending and a challenging macroeconomic environment as well as a shift in pricing strategy from ZWG to US$.”
On the cost side, BAT recorded a substantial improvement, with operating expenses falling 66% to US$10 million, benefiting from lower foreign exchange losses, reduced inflationary impacts and strict cost-management measures.
Profitability also improved significantly. Profit before tax surged to US$11 million, reversing a loss of US$3 million recorded in the prior period — a 491% year-on-year rebound largely attributed to lower forex losses and easing inflationary adjustments.
To counter the challenging environment, Manatsa said BAT implemented targeted strategic initiatives to reinforce business resilience. These included enhanced distribution effectiveness to support volume delivery, intensified trader engagements, performance-focused trade programmes, and a sharpened focus on route-to-consumer efficiency to strengthen market coverage.
The company also pursued business simplification initiatives which contributed to the dramatic reduction in operating expenses.
Looking forward, BAT Zimbabwe said it will focus on driving volume recovery by increasing attention on the value segment and improving product availability across all markets and channels. The group will also continue optimising supply-chain processes and reducing cost-to-serve to protect margins.
Manatsa added that the company will maintain transparent dialogue with policymakers to support evidence-based and progressive regulation.
