British American Tobacco Zimbabwe (BAT) has recorded a total revenue of US$16.7 million for half year ended 30 June 2017 representing a 0.5% reduction from the comparative period in 2016.
According to the company chairman, Lovemore Mutasa, operating profit increased by 27 percent to US$4.6 million with basic earnings per share going up by 22 percent from US$0.18 to US$0.22 per share.
“Total sales volumes grew by 0.2% spurred by the growth of the low priced segment brand Ascot resulting from increased down trading by consumers driven by affordability challenges.
“Conversely, sales volumes for Dunhill, the company’s premium brand declined moderately compared to the same period in 2016,” says Mutasa.
He added that selling and marketing costs increased compared to the same period last year due to a change in the company’s route to market structure and increased investment behind the company’s brands.
“Selling and Marketing costs increased by US$0.2 million compared to the same period last year due to a change in the company’s route to market structure and increased investment behind the company’s brands.
“Administrative expenses went down by US$1.9 million compared to the same period last year, largely attributable to non recurring costs associated with a staff rationalization exercise carried out in 2016, said Mutasa.
He further noted that company earnings per share increased by 22% to US$0.22 from US$0.18.
“The company’s earnings per share increased by 22% to US$0.22 from US$0.18 generated in the same period last year.
“Cash generated from operations increased by 23% to US$9.9 million against US$8.0 million achieved in the same period last year.
“The increase was mainly driven by increased profitability, improved collections, delays in payments to foreign suppliers and a decrease on stock holdings,” noted Mutasa.