BAT contributes over ZWG100 million to treasury despite sales decline

BRITISH American Tobacco (BAT) says it has contributed more than ZWG100 million to the Treasury through different tax heads for the half-year period to June 30, 2024.

In a statement accompanying its condensed half-year financial results for the period, group chairman Mr Lovemore Manatsa said key contributors to the group’s increased tax payments were excise duty, corporate tax and pay as you earn (Paye), amongst other tax heads.

“Taxes in the form of excise duty, corporate tax, value added tax, customs duties, pay as you earn and withholding tax amounted to ZWG 112 million for the period ended June 30, 2024,” said Mr Manatsa.

On its financial performance for the period under review, BAT Zimbabwe’s sales volumes declined by nine percent, which Mr Manatsa said was due to the change of trading currency and shortage of the new currency.

He also said revenue decreased by 38 percent from ZWG 400 million when compared to the same period prior year.

“The decrease in revenue was due to a decline in sales volume. This resulted in a gross profit decline of 41 percent compared to the same period in the prior year,” said Mr Manatsa.

“Production costs decreased to ZWG 47 million from ZWG 60 million in the prior year, driven by cost optimisation initiatives.

“The company reduced its administrative expenses to ZWG 33 million from ZWG 42 million, a 20 percent decrease from the same period last year.”

The company reported a loss before tax of ZWG 145 million compared to the loss before tax of ZWG 28 million in the same period last year.

This was due to a decline in sales volume as well as foreign exchange losses from the translation of monetary assets and liabilities at period end.

Given the financial performance recorded during the period under review, Mr Manatsa said the board of directors has not declared an interim dividend for the period ended June 30, 2024.

“We remain confident in the resilience of our underlying business strategy, which is anchored on our diversity, excellence in execution, world-class talent, strong brands and effective business partnerships,” said Mr Manatsa.

“Although trading conditions are expected to remain challenging in 2024, the board of directors is confident that the company is in a good position to navigate through the challenging operating environment.” — chroncile