Deflation hits BAT sales

Deflation hits BAT sales
Published: 28 May 2014
British American Tobacco Zimbabwe (BAT) said volumes in the first quarter of this year dipped by one percent as compared to last year.

Managing director Lovemore Manatsa told journalist at the company's annual general meeting (AGM) Tuesday, the company was trading flat.

"Volumes are a bit low and Harare is the major consumer of our cigarette because of the obvious reason that is where there the most economic activities is, we are trading flat but that is the norm, we will pick up in the next quarter as per our tradition.

"Other regions are now starting to pick up like Mashonaland, Dunhill is ahead of others while Everest is also doing fine with Madison lagging behind but Harare is the core consumer of our products. We expect to meet our targets of the full year and we will definitely pick up in the second quarter," he said.

The company will introduce Limited Edition Packs (LEP) in June this year to try and push up Madison sales.

"We have a few plans to push up our products called the LEP to try and reward our customers and increase Madison and to increase volumes where we are trading flat" he said.

Chairman, Kennedy Mandevhani said the AGM and the board had agreed on the re appointment of Professor Hope Sadza as a non-executive director.

He added that limited growth being achieved in the agricultural and mining sector as well as domestic liquidity challenges had affected the company's business leading to reduced cigarette volumes.

Successive increases in excise duty in 2011 and 2012 have also impacted cigarette retail prices. In 2013, cigarette sales volumes declined by a very significant 17% from the previous year, across all local brands.
- Zim Mail
Tags: BAT, Deflation,

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