BAT Zimbabwe reports drop in volumes | Fin24
 
  • Solly Moeng

    Give business owners a reason to stay in South Africa.

  • Pravin Gordhan

    The minister says SA is paying more for electricity because of theft at Medupi and Kusile.

  • Keep Flying the Flag

    The ANC says the state must keep a 'restructured' SAA as a national airline.

Loading...

BAT Zimbabwe reports drop in volumes

Jul 26 2016 15:07
Malcom Sharara

Harare - British American Tobacco (BAT) Zimbabwe on Tuesday reported a 23% drop in revenue to $16.8m following a 21% decrease in sales volumes as economic fundamentals continue to wane.

Cigarette consumption is normally regarded as inelastic, but this has not been the case in Zimbabwe where disposable incomes are not enough to cover the necessities.  

Analysts said the 21% drop in volumes points to a distressed consumer, something which was confirmed by managing director Clara Mlambo, who said the trading environment remained constrained during the period.

“The trading environment was characterised by weak consumer demand and an accelerated liquidity crunch, driven by the generally weak macro-economic performance,” said Mlambo.

BAT said overall cigarette volumes for the local market had also declined compared to the same period in 2015.

Going forward BAT said it will continue to invest in Zimbabwe, both through its commercial business and through purchases of a significant proportion of the national tobacco crop.

Mlambo said BAT Global purchases between 10% to 12% of Zimbabwe’s tobacco output, which reached 190 million kilogrammes in 2015 and has already reached 183 million kilogrammes in the current selling season.

bat  |  zimbabwe  |  agribusiness  |  tobacco
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...