BAT Zimbabwe Limited Demonstrates Resilience with 7% Decline in Cigarette Sales Volume due to Challenging Operating Environment

Published On: October 30, 2023Company: BAT Zimbabwe Limited (BAT.zw)
What factors have led to the decline in sales volume of cigarettes for BAT Zimbabwe Limited?
The challenging business environment, which included issues such as currency volatility and hyperinflation, impacted consumers disposable incomes leading to a decline in cigarette sales volume.

Business Environment

  • The operating environment for BAT Zimbabwe Limited remains challenging due to currency volatility and hyperinflation affecting both the business and customers.
  • Despite these challenges, the business has demonstrated resilience based on solid business fundamentals and a proven strategy, which is regularly evaluated for suitability.

Business Performance

  • The sales volume of cigarettes declined by 7% for the nine months ending 30 September 2023, compared to the same timeframe in the prior year. This decline is attributed to decreases in consumer disposable income caused by the challenging operating environment.
  • In spite of the decline in volume, the company experienced a 120% growth in net turnover (or 723% in historical terms) due to strategic pricing decisions made during the review period.

Outlook

  • British American Tobacco is undergoing a transformational shift guided by a commitment to creating “A Better Tomorrow™” by offering an increased variety of enjoyable and less harmful product choices.
  • This transformation is continually reinforced by a focus on Environment, Social, and Governance (ESG) priorities, active stakeholder engagement, business model simplification, a consumer-centric brand portfolio, and a winning culture.
  • The company is confident that these steps will allow a sustainable increase in shareholder value and contribute to the country’s socio-economic growth and development.

Useful links

About British American Tobacco Zimbabwe Limited (BAT.zw)

British American Tobacco 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. The company provides tobacco and other products to customers throughout Zimbabwe and beyond.

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