Retailers applaud extension of business hours

RETAILERS have welcomed the extension of the Covid-19 pandemic lockdown business operating hours saying the move buttresses the gradual re-opening of the economy.

On Tuesday, the Government announced the extension of business operating hours from any time between 6.30am to 6.30pm to balance the economy and respond to the Covid-19 threat. Confederation of Zimbabwe Retailers (CZR) president, Mr Denford Mutashu, said his organisation notes with appreciation cautious efforts by the Government to reboot the economy.

“CZR applauds the Government on the extension of operating hours for businesses in line with the gradual relaxation of Covid-19 lockdown restrictions,” he said in an interview.

“The move implemented by the Government this week is in support of its plans to re-open the economy in a careful manner taking Covid-19 pandemic into consideration, which is still in our midst.”

The Government through the ad-hoc inter-ministerial taskforce on Covid-19, has indicated that the country was yet to emerge from the woods in the fight against the global health crisis. Since the outbreak of the disease in the country towards the end of March this year, Zimbabwe has so far recorded over 7 530 people infected with the viral respiratory disease while more than 200 have succumbed.

“CZR wishes to thank the Government for taking a timely intervention on the matter following a submission of our application to authorities to that effect.

“All business stakeholders, consumers and the general public, while celebrating this move should, however, remain vigilant in the fight against the invisible enemy, Covid-19 pandemic,” said Mr Mutashu.

Meanwhile, the retailers’ representative body also welcomed the re-opening of more than 16 000 alcoholic beverages sector outlets across the country.

Mr Mutashu said CZR would continue to work with authorities, alcoholic beverage manufacturers, sector players and law enforcement agencies to ensure compliance with the re-opening regulations to prevent the potential spread of Covid-19.

“It is CZR’s utmost plea to retailers and wholesalers to remain vigilant in the fight against this invisible enemy. Let’s also all continue to price responsibly and apply the formal foreign currency auction exchange rate on our products to protect consumers,” he said. —chronicles

BAT increases tax contribution to $173m
BAT increases tax contribution to $173m

CIGARETTE manufacturer, British American Tobacco Zimbabwe (BAT), has increased its tax payments for the six months ended June 30 this year eightfold to ZW$173 million from ZW$19.9 million in 2019.

The company contributes to the Treasury through various taxes, including Excise Duty, Corporate Tax, Value Added Tax, Customs Duties, Pay as You Earn and Withholding Tax.

“The key contributors of the increase in tax were Excise Duty and Corporate Tax driven by the increases in selling prices and profit before tax,” chairman Mr Lovemore Manatsa said in a statement accompanying the group’s financial results.

However, the company’s total sales volumes for the first half of this year declined by three percent compared to the same period in prior year mainly due to shrinking consumer disposable incomes and the impact of the Covid-19 pandemic lockdown.

Despite the drop in volumes, revenue rose 20 percent to ZW$410.5 million from ZW$341.6 million.

“The increase in revenue was driven by price increases taken during the period as well as revenue generated from the export of cut-rag. These two factors resulted in a gross profit increase of ZW$49.6 million (22 percent) compared to the same period in 2019,” he said.

Selling and marketing costs declined by ZW$0.2 million compared to same period in prior year, driven by route to market initiatives aimed at managing the company’s distribution costs.

Administrative expenses were 35 percent lower than the same period the previous year, driven by the business’s ongoing cost saving initiatives. Other losses increased by ZW$116.4 million due to foreign exchange losses on liabilities driven by the devaluation in the Zimbabwe dollar against major trading currencies. BAT’s earnings per share surged to ZW$3.58 from ZW$0.91 generated in the same period in 2019.

Cash generated from operations was a negative ZW$13.1 million as a result of a significant increase in trade and other receivables due to prepayments to purchase leaf and an increased debtors’ book as a result of price increases taken during the period.

With the introduction of the foreign currency auction platform, the firm hopes to access the much-needed foreign currency, which it requires to source raw materials for the production of its consumer centric brands.

– New Ziana