Published: 4 hours ago

British American Tobacco (BAT) Zimbabwe has announced that it contributed US$8.1 million to the national fiscus during the latest reporting period, reaffirming its role as a key supporter of the economy despite a challenging operating environment.

Presenting the group's performance update this week, company secretary Lovemore Manatsa underscored the company's fiscal contribution, which included Excise Duty, Corporate Tax, VAT, Customs Duties, PAYE and Withholding Tax.

"BAT Zimbabwe continues to contribute to the country's development in various ways, including payment of taxes to the Exchequer. Taxes paid for the period under review came to a total of over USD8.1 million," he said.

The reporting period, however, was not without difficulties. Sales volumes declined by 14%, reflecting weaker consumer spending and macroeconomic headwinds. This resulted in a 28% fall in revenue, which dropped from US$18.1 million to US$13 million compared to the same period last year. The decline was largely linked to strained consumer incomes, a difficult trading environment, and a pricing shift from the Zimbabwe Gold (ZWG) to the US dollar.

At the same time, costs surged. The cost of sales rose by 31% to US$4.1 million, up from US$3.4 million in 2024, due mainly to increased raw material prices.

Despite these pressures, BAT posted a profit before tax of US$6.6 million, a significant turnaround from the US$10.6 million loss recorded in the prior year.

Manatsa expressed optimism about the company's future despite economic challenges. "Zimbabwe's ability to navigate the ever-changing macro-economic landscape and deliver long-term value to all stakeholders is clear. Our optimism is grounded in the resilience of our people, our brands, and our unwavering commitment to innovation and transformation," he said.

The results reflect both the pressures facing consumer-driven industries in Zimbabwe and the resilience of established companies in adapting to a volatile economic climate.
- NewZimbabwe

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