BRITISH American Tobacco Zimbabwe posted a $5,3 million profit for the six months ended June 2014 from a loss of $1,4 million during the same period last year due to reduction in share-based payment expenses associated with the company’s share ownership trust.
In the half year, BAT paid $271 000 down from $10,6 million paid during the same period last year.
Speaking at the company’s analyst briefing on Friday, finance director Peter Doona said the half year volumes were in line with the same period last year.
During the period under review Madison and Everest maintained their levels and Dunhill continued to grow with volumes increasing by 65%.
Doona said the revenue during the period under review stood at $20,3 million for the six-month period indicating a $2,8 million decline from the same period last year due the discontinuation of non-core cut rag sales in June 2013.
“Revenues were down by 12% mainly due to discontinuation of cut rag exports. On cigarettes, revenues broadly in line with same period last year,” he said.
BAT managing director Lovemore Manatsa said the company expects the excise duty to remain stable as any hikes would affect the operations of the business.
“Trading conditions are expected to remain challenging. We expect to continue to grow our business through our great brands Dunhill and to manufacture quality goods,” he said.
He said the company would be making its capital investments in the second half of the year.
Doona said gross profit reduced by $2,2 million to $13,8 million during the period under review.
Doona said the reduction in gross profit was due to an increase in depreciation charges and refurbishment costs from plant upgrades, higher packaging costs from sales of 10s format, salary awards to employees and higher utilities charges.
The company declared a dividend of 0,30 cents for the six-month period per share.