- Decline attributed to reduced operations in April and May 2020
- Q1 volumes 10% down
- Company has put in place measures to recover from the COVID-19 impact
Harare – Cigarette manufacturer, British American Tobacco (BAT) Zimbabwe forecasts a drop in volumes in the second quarter of 2020 (Q2 2020) as the COVID-19 induced lockdown disrupts business operations.
The drop in the quarter is expected to stem from trading for a few days in April 2020 and reduced operations in May 2020.
The Company however recorded growth in volumes in first quarter ended 31 March 2020 (Q1) compared to the same period last year.
Volumes in the period increased by 10%, growth attributed to various efficiencies from the new trade marketing tools that are being used by the Company.
The Company’s turnover in the period under review increased by 703% on a historical basis compared to the same period in the prior comparable year due to price increases which were taken to manage the inflationary pressures faced by the Company.
In addition, BAT said it also commenced cut rag exports in March 2020 to assist in foreign currency generation.
As the Company expects COVID-19 to have an impact on the business in the half year financial reporting, it has put in place measures to ensure that it recover from the impact of the pandemic.
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