BAT Zim full-year volumes down 21%

Harare - British American Tobacco (BAT) Zimbabwe reported a 21% drop in sales volumes for the year ended December 31 2016.

In a results briefing on Wednesday, MD Clara Mlambo said the volumes decline was on the back of weak consumer demand.

“The economic environment remained constrained, characterised by weak consumer demand resulting principally from weak macro-economic performance.”

Total revenue was down 25% to $34.1m while gross profit for the year declined by $7.6m to $24.7m.

Net profit attributable to shareholders for the year was $8.5m, down by $7m from the prior year.

This represents earnings per share of 41 US cents from 75c prior year comparative.

The group paid a dividend of 33c which, together with the interim dividend of 18c, will bring the total dividend for 2016 to 51c.

Meanwhile, the company said it is struggling to remit dividend payments to foreign shareholders due to delays in receiving the relevant exchange control approvals.

The company, which also declared an interim dividend of about $4.5m back in July, is yet to remit the funds to its foreign shareholders.

Shortage of foreign currency or external payments has also seen amounts due to related parties increasing to $11.5m against $4.8m prior year. 


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