BAT sales volumes up 49 percent

The company swung back into profitability last year due to the high volumes of tobacco and positive growth in its sales mix.
The firm’s chairman Mr Kennedy Mandevani said sales volumes increased in all key areas of the brand portfolio.
“Increased sales volumes were realised in all key areas of the brand portfolio, notably our key and iconic Madison brand which realised a 61 percent increase in sales volumes against the same period last year,” he said.

BAT’s gross profit increased 163 percent to close the year at $18,4 million while its underlying operating profit improved to $7,3 million against $184 000 in 2010.
Profit after tax was $4,88 million up from a loss of $499 000 the previous year.
“As we move into 2012, the business focus will be on further volume and value growth in our brands,” said Mr Mandevani. The company’s basic earnings per share rose to $0,28 in the year to December 2011, from a loss of $0,03 previously, on the back of increased demand.

Zimbabwe’s tobacco output has for the past three years been on a positive growth trajectory with 43,3 million kilogrammes of the golden leaf having gone under the hammer since the beginning of the crop’s selling season in February this year.

Last year, 132 million kilogrammes of tobacco were sold compared to 123 kilogrammes in 2010.
Before the liberalisation of the economy in February 2009, Zimbabwe sold 48 million kilogrammes of tobacco in 2008.