daniel chigunwe
Business Writer
BAT Zimbabwe says it continues to review its business model to ensure long-term sustainability in an environment characterised by macroeconomic turbulence.
In a trading update to September 30, 2024, group chairman Lovemore Manatsa, said the environment continues to be impacted by monetary instability and substantial exchange rate distortions adversely impacting business activity.
During the quarter under review, sales volumes declined by 8 percent compared to the same period prior year due to inflation and currency challenges.
“Consequently, domestic cigarette revenue decreased by 37 percent compared to the same period prior year, driven by reduced consumer spending and disposable income,” said Manatsa.
However, he noted that operating costs were reduced by 33 percent compared to the same period prior year, driven by cost optimisation initiatives.
Manatsa said in response to economic challenges, the company implemented dual currency billing, offering flexibility to customers and ensuring business continuity.
“We also reviewed our Route-to-Consumer operations, creating a robust and future-fit model that is responsive to evolving consumer and market trends,” he said.
Manatsa said the company is committed to driving growth by simplifying its business model, expanding consumer-centric brand portfolio, and maintaining strong stakeholder engagements.
“We continue the transformation journey anchored on our purpose, which is to build A Better TomorrowTM, by reducing the health impact of our business through offering a greater choice of enjoyable and less risky products,” he said.
He noted that as part of its four ESG agendas, the company is working towards reducing the environmental footprint of its operations through responsible water use, recycling of waste, and increasing its energy efficiency while contributing to local socio-economic development.
BAT Zimbabwe is a tobacco company that manufactures and sells cigarettes and other products in Zimbabwe.
Its brand portfolio includes Dunhill, Benson and Hedges, Rothmans, Lucky Strike, Madison, and Ascot.
Bongani Ndlovu