BAT revenue declines
One of the largest cigarette manufacturers, BAT Zimbabwe has suffered a blow due to the economic hardships amongst other reasons. The manufacturer on a good season records profits, but this time it could not escape the hardships that have affected its primary base of income due to cash shortages amongst other reasons.
The ZSE listed cigarette manufacturer, recorded a 23 percent decline in revenue owing to reduced consumer affordability, according to the firm’s half year financial results.
Revenue for the period under review declined by 23% to 16.8 million compared to the same period last year.
The unimpressive set of figures has been attributed to liquidity constraints and strained consumer affordability.
“In the outlook, the firm will continue to focus on cost containment and remains optimistic of attaining its performance targets for the full year,” BAT Managing Director, Clara Mlambo said.The cigarette manufacturer’s gross profit for the period under review was down 26% to US$11,9 million, while operating profit decreased by US$4,6 million to US$5,1 million.
The company’s contribution to the Zimbabwe Revenue Authority (ZIMRA) in taxes was down 3% from US$16,5 million to US$16,0 million for the period ending 30 June 2016.