- Sales volumes for the company decreased by 10%
- Export volumes remain flat
- Net turnover surges by 458%
Harare - Tobacco Processor, BAT Zimbabwe's financial performance for the nine months ending 30 September was severely influenced by a lack of local currency, which was exacerbated by the government's stringent monetary regulations. The introduction of gold coins and the government's decision to stop paying debtors both played a role in removing some of the extra currency. Despite appearing to be beneficial for the economy, the measures had an impact on BAT Zimbabwe's commerce.
Sales volumes for the company decreased by 10% from the first nine months of 2021. This was partially brought on by a decline in demand spurred on by a fall in consumer disposable income.
Due to the lack of local currency, traders were unable to pay, and BAT was compelled to stop supplying them.
For the nine months ending 30 September 2022, export volumes of cut and leaf tobacco remained essentially unchanged. This was caused by weak demand in the company's export markets.
When compared to the same period the previous year, pricing reviews carried out throughout the period contributed in part to the company recording a 458% growth in net turnover.
The trading environment was also marked by rising inflation, with month-to-month inflation averaging 14% throughout the time, which only served to exacerbate the local currency problem. Inflation for the year as a whole came to a finish at 280.4%, down from the 51.5% reported for the first nine months of 2021.
As a result, the company is aware that macroeconomic factors may cause trading conditions to remain difficult for the rest of 2022. The company is certain that its ongoing business plan will increase shareholder value.
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