Cigarette manufacturer, British American Tobacco (BAT) Zimbabwe’s sales volumes have declined 21% owing to weak consumer demand, according to the firm’s financial result for the year ended 31 December 2016.
The decrease in sales volumes saw the total revenue for the firm falling by 25% to US$34.1 million for the period under review.
BAT Zimbabwe Managing Director, Mrs Clara Mlambo is however bullish of growth prospects and the ability of the group to deliver decent return on investment to the shareholder.
Operating profit for the company decreased by US$8.9 million to close at US$11.9 million compared to the year ended 31 December.
The group managed to declare a final dividend of US$0.33 cents per share and together with the interim dividend of US$0.18 per share, the total dividend for 2016 was US$0.51.
The company’s contribution to the fiscus was down 13% from US$37.3 million paid for the year ended 31 December 2015 to US$32.5 million for the year ended 31 December 2016.