Zimbabwe: BAT Revenue Up

Source from:  Financial Gazette (Harare) 09/10/2012

Revenue for the British American Tobacco-Zimbabwe (BAT) went up by 31 percent during the first half of the year, translating into over 100 percent increase in net profit, compared with the same period last year, the company's financial results indicate. The cigarettes manufacturing concern's unaudited financial results for the six months ended June 30, 2012 released last week show that turnover surged to US$23 million, from US$17,5 million while net profit for the half year shot from US$1,9 million in 2011 during the review period to US$5million.

"This has been made possible through a combination of the following: our sound brand portfolio, trade marketing and distribution capability, product quality and positive stakeholder relationships," said Kennedy Mandevani, BAT board chairperson, in a statement accompanying the results. "These excellent results are also a key function of improved efficiencies in all areas of business principle which we will continue to develop," added Mandevani. With Madison remaining the company's key brand contributing to largest portion to BAT's national volumes, Mandevani said their trade marketing and distribution activities have been made successful in ensuring they continue to deliver growth of sales and share of the market. BAT manufactures, distributes and sells cigarettes through a network of own sales force, independent retailers and distributors. The tobacco giant also manufactures cut rag for export to BAT-Mozambique. The significant earnings by the Zimbabwe Stock Exchange listed- company, in spite of the country's continued liquidity crunch during the period under review, have seen it joining a few others in declaring dividends to its shareholders. BAT board of directors has since declared a dividend of $ 0,23 per share for the half year. The board chairperson said directors were committed to achieving high levels of near-term profitability in continuing to drive the business forward. He elaborated: "This will be achieved through tapping into existing business strengths, upgrading machinery, continued reinvestment in staff development and an aligned focus on the strategic imperatives across the business." Enditem