daniel chigunwe
Business Writer
British American Tobacco Zimbabwe (BAT) reports a 21 percent decline in sales volumes for the quarter ending March 31, 2024, compared to the previous year.
This decrease is primarily attributed to changes in fiscal policy and rising inflation, which have eroded consumer purchasing power.
Group chairman Lovemore Manatsa stated that the reduced sales volumes resulted in a 6 percent drop in revenue.
“The company continues to implement strategic pricing and marketing initiatives to adapt to the evolving trading environment,” he said.
Despite the challenges, BAT Zimbabwe has demonstrated resilience by exploring various avenues to generate value for stakeholders, including shareholders, consumers, employees, and society.
Manatsa emphasised the company’s transformation journey focused on “creating A Better Tomorrow” by building a smokeless world.
“This transformation prioritises reducing the health impact of our business by offering adult smokers a wider selection of alternative products,” he explained.
“Sustainability is at the forefront of everything we do, and our Environmental, Social, and Governance (ESG) priorities underpin this transformation. We look forward to continued collaboration with various stakeholders to achieve this goal.”
Looking ahead, Manatsa expressed confidence that the company’s continued investment in business simplification, a growing consumer-centric product portfolio, and fostering a winning culture will enable them to deliver sustained value to shareholders and contribute to the country’s socio-economic growth and development.
A recent review from IH Securities acknowledges BAT Zimbabwe’s proactive approach to diversifying its income stream, including the recent introduction of a distribution channel for Vuse electronic cigarette products. Since its launch in October 2023, this channel has sold 34 000 devices.
The firm predicts that consumer spending in FY24 will likely remain constrained due to inflation eroding disposable incomes and lower liquidity at the bottom of the pyramid. “We anticipate volumes to remain weak for BAT Zimbabwe,” IH said.
“Market share will also likely face pressure due to the availability of cheaper brands.”
Bongani Ndlovu