THE British American Tobacco Zimbabwe company profit after tax grew by 15% to $15,5 million for the full year ended December 31, 2015 compared to $13,4 million in 2014.
BY VICTORIA MTOMBA
Revenue for the group increased to $45,2 million in 2015 from $44,56 million the previous year due to marginal gains from pricing net of the impact of the excise duty increase in November 2014 despite a decline in volumes.
BAT finance director, Lucas Francisco said administrative expenses grew by 28% due to higher service fees as a result of the implementation of the new group-wide management system, which will increase efficiency and savings opportunities and once off costs associated with a staff rationalisation exercise.
Francisco said volumes declined across local brand portfolio of 10% compared to the same period last year. He said the company’s market share grew despite the industry contraction. Earnings per share stood at 0,75 cents during the period under review from 0,65 cents.
He said the company was fully compliant with the indigenisation policy, as certified by National Indigenisation and Economic Empowerment board.
BAT managing director, Clara Mlambo said the trading conditions for 2016 were expected to be challenging. She said the company does not need to increase prices, but to recover and grow.
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Mlambo said during the first half, business was depressed and in January volumes for this year did not deviate from the norm and sales were picking up in February.
She said the company had witnessed suspiciously priced goods on the market and engaged in conversations with the authorities over the issue.
“We have seen what we call suspicious products in the market particularly in quarter four in October last year. We have seen an increase in these products just looking at the last quarter. Government might have lost $2,3 million in excise duty because of suspicious products and for the full year it will come to about $18 million,” she said.
