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.
“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.