BAT Zim Aales Grow 12%

Source from:  The Independent(ZW) 04/15/2011

BRITISH American Tobacco (BAT) Zimbabwe's sales grew 12% in the full year to December despite competition in the sector, the company said. In a statement attached to the company's financial results, BAT chairman Kennedy Mandevhani said the group would be focusing on growing volumes and revenue in the current financial year. "With the introduction of new cigarette making machinery during the year additional production efficiencies were introduced which will be developed in the coming year," Mandevhani said. "Expected volume growth using existing resources will further enhance delivery whilst continuing to maintain high finished product quality standard." BAT said it maintained its leadership position in the market, but reported a comprehensive loss of US$499 000 compared to a profit of US$300 000 in the comparative period in the prior financial year. The group's operating profit fell to US$184 000 from US$402 000 in the prior financial year. Gross margin decreased by 8% to US$7 million last year owing to the transition from Zimbabwe dollars to the greenback that saw tobacco leaf prices rising. BAT's nature of business is processing of tobacco and manufacture of cigarettes. The company reported a $0,03 cents loss per share from a positive $0,02 cents per share in the prior year. Turnover stood at US$22,9 million up from US$15,1 million in 2009. No dividend was declared in the period under review. "The cigarette industry continues to enjoy a growing competitor environment offering wider choices in terms of brands and pricing," said Mandivheni. "In addition, the industry continues to adhere to increasing and demanding regulatory and statutory requirements." The company sees business growing this year helped by improved distribution of brands in the group. BAT manufactures brands of cigarettes such as Kingsgate and Madison. But its rival, Savanna Tobacco, says it controls the toasted cigarette market once controlled by BAT. Enditem