In the 6 months period to June 2019, BAT reported a 48% increase in revenue to ZW$9.6 million which was mainly as a result of swelling prices in the economy.
The company reported that the growth in revenue was driven by price increases targeted at containing an increase in costs. Annual inflation began the year at 46% while closing the first half year period at 175%.
BAT, which is the leading ciggarete manufacturer in Zimbabwe said the growth in revenue countered a decline in volumes. volumes were negatively impacted by shrinking consumer disposable incomes.
Average incomes have generally been slower to adjust compared to average prices of goods and services in the economy. This mismatch has resulted in curtailed expenditure across board.
Volumes on aggregate eased by 20% with the premium brand Dunhill easing by 87% while the duo of value for money brands Everest and Madison realised a combined decline of 21%. The Ascot brand, which is at the bottom of the pyramid eased by 5%.
Elsewhere the company said shortages of foreign currency and electricity compromised the efficiency and overall production capacity for those in the manufacturing sector.
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