BAT rides high on e-cigarettes

Audrey Galawu

ASSISTANT EDITOR

The British American Tobacco Zimbabwe continued to deliver sustained performance, with a key highlight being the introduction of the ‘New Categories’ to its products.

The company introduced the vapour product brand Vuse, which provides customers with a wide range of smokeless products.

Commenting on the new Vuse product, BATZ managing director Kenneth Gitonga said the growth of adult smokers seeking smokeless alternatives is a long-term trend which should be effectively addressed through a balanced and sustainable approach.

“We believe that this enable smokers to switch faster on the back of access to smokeless products with reduced risk. Through a multi-category product portfolio, we are well placed to meet this consumer shift through our mission to enable smokers switch to better, while continuing to manage our combustible cigarette in a responsible manner," he said.

The Group and company recorded remarkable results for the year ended December 31, 2023, delivering 147% and 101% growth in revenue and profit before tax respectively, compared to the same period in the previous year.

Notwithstanding the challenging economic environment, BAT Zimbabwe chairman Lovemore Manatsa revealed that the organisation has recorded a remarkable financial performance for the year period under review.

“Nonetheless, the Group recorded a significant profit after tax of 13% compared to the prior year and the amount recorded for the year ended December 31, 2023 was ZWL$55.4 billion and the earnings per share increased to ZWL$1 16351 in the prior year.

“The trading environment for the year ended December 31, 2023 was characterised by rising retail prices for basic commodities and rising inflation, resulting in pressure on consumer purchasing power.

“Although trading conditions are expected to remain challenging in 2024, the Board is confident that the Group and company are in a good position to navigate through the oscillating economic environment through the implementation of effective business strategies, the equity of our brands,” he said.

Due to the challenging operating environment, the Group and the company, however, experienced less sales and an increased credit defaulting rate from the Customers Export volumes of cut rag tobacco reduced to 282,940 kgs, representing a decrease of 32% during the period under review from the previous year.

The Group and company’s total sales for the period under review declined by 5% compared to the same period in the prior year.

Selling and marketing costs increased by 109% compared to the same period in the prior year and administrative expenses also increased by 46% versus last year and the increase costs was ascertained to the significant devaluation of the currency which led to suppliers revising their prices and charging more for their services and goods.