CIGARETTE manufacturer, BAT Zimbabwe, has posted 163 percent export volumes of leaf and cut rag tobacco in the three months under review due to increased demand in the export markets.
In a trading update for the three months ending 31 March 2022, BAT Zimbabwe said volume growth coupled with the pricing review done during the period saw the firm recording growth in net turnover of 147 percent in historical terms, compared to the same period prior year.
“For the three months ended 31 March 2022, the company delivered overall volume growth versus same period last year mainly attributable to increased export of cut rag tobacco and leaf,” chairman, Mr Lovemore Manatsa, said in a statement.
“The Company’s volumes from sale of cigarettes were relatively flat as compared to the same period last year on the backdrop of shrinkage of consumer disposable income.
“The value-for-money brands, Lucky Strike and Madison, contributed 52 percent and 38 percent of the volume performance respectively.”
BAT Zimbabwe said it remains hopeful that fiscal and monetary policy reforms will be employed to eliminate the market challenges currently impacting the economic environment.
However, a decline in consumer spending due to an increase in inflation and exchange rate volatility.
Changes in cigarette excise ad valorem regime from 20 percent to 25 percent with effect from 1 January 2022 slight affected trading patterns.
Article Source: The Chronicle