- Revenue increases by 63%
- Sales volume up 27%
- Profit improves by 5%
- Administrative expenses surge by 168%
Harare – British American Tobacco Zimbabwe’s (BAT) revenue improved by 63% to ZWL1.38 billion for the half year ended 30 June 2021 buoyed by an increase in sales volume, inflationary price adjustments, and the export of cut rag tobacco.
The increase in revenue is from a comparative same period last year figure of ZWL848.33 million.
During the half year, the Group witnessed a 27% growth in sales volume driven by increased investment behind the Group’s brands and focused investment in their route-to-market strategy.
“Selling and marketing costs went up by ZWL80.2 million (92%) compared to the same period in the prior year, driven by additional marketing investments aimed at driving sales volumes,” the Group’s chairperson, Lovemore Manatsa said in a statement accompanying the group’s half year financial results.
Profit for the period under review was up 5% to ZWL30.8 million compared to the same period last in 2020.
Manatsa said the Group’s administrative expenses surged by 168% to ZWL174.31 million from ZWL65.06 million recorded in half year 2020 owing to a general increase in costs while other losses decreased by 88% to ZWL36.36 million from a comparative of ZWL301.27 million due to the stability of the Zimbabwean Dollar since the introduction of the foreign exchange auction system.
The Group’s earnings per share grew by 209% to ZWL22.79 from ZWL7.39.
Cash generated from operations during the six months was a positive ZWL556.5 million against a negative ZWL115.4 million recorded in the prior half year owing to diligent customer collections, an increase in trade payables, and a decrease in inventories as of the end of the period under review.
As a result of the unpredictable operating environment, the Group did not declare an interim dividend for the period under review to allow for reinvestment into the operations of the Group.
Manatsa said BAT’s contribution to the Zimbabwe Revenue Authority during the half year increased by 379% to ZWL828 million from a comparative 2020 half year of ZWL173 million.
“The key contributors to the increase in tax payments related to the legislated upward adjustment in Excise Duty payable year-on-year as well as price increases effected by the Group,” he added.
Going forward, the Group remains committed and confident that its business strategies will deliver value growth for its stakeholders.
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