HARARE, Zimbabwe — British American Tobacco (BAT) has attributed a 21% decline in sales volume to fiscal policy changes and inflationary pressures, despite efforts to maintain a customer-centric strategy.
In a trading update for the period ending March 31, 2024, BAT Chairman Lovemore Manatsa highlighted the impact of abrupt fiscal policy adjustments and rising inflation on the company’s performance.
“For the three months, the company experienced a 21% decline in sales volumes compared to the same period last year. This decline was attributed to fiscal policy changes and rising inflation, which eroded consumer purchasing power,” Manatsa stated.
He added that the reduced sales volumes led to a 6% decline in revenue. In response, BAT is implementing strategic pricing and marketing initiatives to navigate the challenging trading environment.
Manatsa emphasized that Zimbabwe’s operating environment faces significant challenges, including currency volatility, high credit risk, and hyperinflation. These issues have severely impacted the business, its customers, and other stakeholders.
Despite these hurdles, BAT Zimbabwe has shown resilience by exploring various avenues to generate value for its shareholders, consumers, employees, and society. The company remains committed to adapting its strategies to the evolving market conditions through strategic pricing and marketing efforts.
