eBusiness Weekly
Enacy Mapakame
HARARE – Cigarette manufacturer British American Tobacco Zimbabwe (BAT) says its low value brands experienced a 460 percent growth during the year ending December 31 2017, compared to prior year.
Resultantly, overall sales volumes also jumped 10 percent compared to 2016. At $2, 7 million in the year under review, total revenue was 8 percent above prior year.
“This strong performance was driven by increased volumes in all categories with the company’s low value for money segment recording a 460 percent growth,” said BAT chairman Lovemore Manatsa.
In line with the volume increase and effective cost containment measures, gross profit rose 8 percent to $26 million. Operating profit grew 39 percent to $16 million while net profit attributable to shareholders for the period was 25 percent higher at $10 million representing an increase in earnings per share to 51 cents.
BAT’s administrative expense were 26 percent lower compared to prior year on the back of a reversal of tax related provisions, once off restructuring costs and savings initiatives implemented in the year.
Cash generated from operations increased 13 percent to $19 million compared to $17 million generated in 2016 as a result of the higher profit together with increased payments for liabilities accrued in 2016.
Total assets grew by 18 percent to $38 million. Mr Manatsa said while the domestic market continues to face headwinds from 2016, the cigarette manufacturer would continue to deliver growth and value to its shareholders through various initiatives.
BAT declared a final dividend of 29 cents, which together with the interim dividend of 22 cents per share declared in the previous year will bring the total dividend for 2017 to 51 cents per share.
