Categories: Stories

BAT maintains production at 2014 levels because of weak demand

Cigarette manufacturer British American Tobacco (BAT) says weak demand for its products due to higher taxes has forced it to maintain production volumes at last year’s levels.

In a bid to shore up dwindling revenue streams, government last year increased excise duty on cigarettes from $15 per 1 000 sticks to $20 per 1 000 sticks, which resulted in a 15 percent price hike.

BAT Zimbabwe Managing director Lovemore Manatsa said yesterday that the company was operating at 75 percent capacity and would maintain the level if the sluggish demand continued.

Manatsa said the operating environment remained testing with liquidity and affordability being the main challenges.

“People just cannot afford, it is tough out there. We have remained almost flat in terms of volumes and financials,” said Manatsa.

“Basically we are trending along the same levels like in 2014 but we have got a number of initiatives that we are triggering which we hope will give us some traction for the rest of the year.”

For the full-year to December BAT reported a $13.4 million after tax profit from $3.7 million registered in prior year.-The Source

(159 VIEWS)

This post was last modified on %s = human-readable time difference 7:06 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024