BAT sees 74 percent exports growth

BRITISH American Tobacco (BAT) Zimbabwe says its exports grew by 74 percent in the quarter ending 30 June 2022 due to high demand when compared to the previous year.

This comes as manufactured tobacco exports have increased from US$26,8 million in June 2021 to US$28,1 million in June 2022 translating to 4,7 percent growth in exports.

In a statement accompanying the financial results for the period, BAT chairman, Mr Lovemore Manatsa, said the increase in leaf exportation was spurred by high demand from external markets.

BAT

“Export volumes of cut rag tobacco were up by 74 percent in the period under review compared to the prior year due to increased demand of leaf from our exports markets,” said Mr Manatsa.

He also said BAT recorded an increase in revenue when compared to 2021, which was attributed to the jump in market prices.

“Revenue increased by 71 percent to record $6,9 billion from $4 billion when compared to the same period in 2021. The increase in revenue was driven by price increases effected during the period,” said the company.

“These factors resulted in a gross profit increase of $2,8 billion (160 percent) compared to the same in 2021.”

Meanwhile, the company said it experienced operational challenges emanating from resurgent of inflation and low disposable incomes.

However, Mr Manatsa said the company came up with measures to keep customers satisfied.
“Despite these challenges the company came up with mitigatory measures to ensure consistent product supply at affordable prices and, thus, satisfying our customers’ needs,” he said.

The company also recorded an increase of $314,3 million from selling and marketing costs, which is 65 percent compared to 2021 driven by additional marketing investments aimed at driving sales volumes and general increase in costs due to inflation.”

During the period under review Mr Manatsa said the company contributed revenue amounting to $3,5 billion in taxes to Zimbabwe Revenue Authority (Zimra) with excise duty and corporate tax being key contributors.

“The group’s contribution to the Zimbabwe Revenue Authority in taxes was $3,5 billion for the half year ended 30 June 2022,” he said.

“The contributors to tax payments were excise duty and corporate tax driven by the increases in selling prices and currency devaluation.”

BAT said it was focused on driving as sustainability agenda to build a better tomorrow as a reflection of their commitment in reducing the health impact of the business by offering less risky products for customers.

Mr Manatsa said their strategy focuses on environmental, social and governance (ESG) priorities, including addressing climate change, supporting sustainable farmer livelihoods and building the resilience of rural communities.

“Our approach is also driven by extensive stakeholder insights as we continuously engage with a wide range of stakeholders to understand what matters to them most,” he said.

“The group continues to strive for excellence and look for new ways to preserve the natural environment, reduce waste, improve farmers’ livelihoods, biodiversity and afforestation and uphold robust corporate governance.”-chronice.cl.zw