British American Tobacco (BAT) recorded a 50 per cent increase in revenue to $24,3 billion during the year ended December 31, 2022, buoyed by price reviews and revenue generated from cut-rag tobacco and leaf export sales.
However, the country’s biggest cigarette maker recorded a negative volume performance for the year ended December 31 2022, owing to liquidity challenges.
BAT’s chairman, Lovemore Manatsa, said the operating environment in the country has been challenging for the company’s operations.
“The group recorded 1 054 million sticks for the year under review, compared to 1 130 million sticks the previous year ending (2021), resulting in negative volume performance. However, despite increased power shortages and reduced disposable income, the group delivered a strong performance that was only 6,7 per cent short of the previous year,” Manatsa said in a statement accompanying the group’s financials.
“A shortage of RTGS drove this volume drop in the market, which made it difficult for customers to purchase our products. Further, the group established that the smart pricing mechanism implemented by the company resulted in higher pricing when compared to competitor trade prices in United States dollars.”
Separately, export volumes of cut-rag tobacco declined by 43 per cent in 2022 compared to the previous year due to declining export market demand.
In the outlook, the group is confident that it is in an excellent position to navigate economic headwinds through implementing effective business strategies, the equity of brands and the quality of people.
