- BAT Zim reported 21% plunge in sales volumes in Q1 2024
- Surging cost of living, inflation are factors eroding consumer purchasing power
- Company is accelerating "Smokeless World" efforts as it battles declining cigarette demand
Harare- British American Tobacco (BAT) experienced a 21% decline in sales volumes during the first quarter of 2024 compared to the same period the previous year. This decline was attributed to changes in fiscal policy and rising inflation, which eroded consumer purchasing power.
For the past decade, Zimbabwe has been battling high inflation rates due to policy missteps and monetary mismanagement by authorities, who have failed to live within their means.
Additionally, campaigns promoting healthy diets and the negative health impacts associated with smoking have also limited cigarette sales in the country, especially as the Apostolic sect and other Christian groups that forbid smoking have grown in number.
In response, the company has accelerated its transformation journey focused on building a "Smokeless World" and offering adult smokers a greater choice of alternative products to reduce the health impact of its business.
As a result of the depressed sales volumes, BAT recorded a 6% decline in revenue.
“The company continues to implement strategic pricing and marketing initiatives to adapt to the changing trading environment.”
BAT Zimbabwe Limited, listed on the Zimbabwe Stock Exchange, is a leading tobacco company in the country. It has an expansive portfolio of tobacco brands, including Benson & Hedges, Dunhill, and Rothmans, and provides tobacco and other products to customers throughout Zimbabwe and beyond.
The company was founded in 1960 and listed on the ZSE in January 1961.
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