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Wednesday, December 7, 2022
HomeBusinessBAT Tax Payments To ZIMRA 8.3 Percent Up

BAT Tax Payments To ZIMRA 8.3 Percent Up

Zimbabwe Stock Exchange listed company British American Tobacco Zimbabwe  (BAT)’s contribution to the Zimbabwe Revenue Authority in taxes increased from US$32.5 million in 2016 to US$35.2 million in 2017, representing an 8.3% increase.

Addressing shareholders in the capital today, the group Chairman Lovemore Manatsa said the group revenue increased by 8% on the back of strong sales performance.

“Revenue increased by US$2.7 million (8%) versus 2016, mainly driven by the strong sales performance. Consequently, gross profit increased by US$2.0 million (8%) compared to same period in 2016, in line with the volume increase combined with effective cost management measures taken by the Company.

“Selling and marketing costs increased by US$0.8 million (19%) compared to 2016 as a result of increased investment into marketing activities supporting our Ascot brand,” said Manatsa.

He added that administrative expenses were 26% lower than in 2016, driven by a reversal of tax related provisions, once off restructuring costs and savings initiatives implemented during the year under review.

“Administrative expenses were US$2.7 million lower than the previous year which is 26% lower than 2016, driven by a reversal of tax related provisions, once off restructuring costs and savings initiatives implemented during the year under review.

“Other income increased by US$0.8 million (47%) compared to the same period in the prior year, as a result of increased income from royalties.

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“Operating profit grew by US$4.7 million (39%) compared to 2016, to close at US$16.6 million. Net profit attributable to shareholders for the period was US$10.6 million compared to US$8.5 million in the previous year or a 25% growth which represents an increase in earnings per share to US$0.51, up from US$0.41 per share in 2016.

“Cash generated from operations was US$19.9 million, representing a US$2.3 million (13%) increase from US$17.6 million generated in 2016. The increase was as a result of the higher profit coupled with increased payments for liabilities accrued in 2016,” added Manatsa.

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