British American Tobacco Zimbabwe has reported a strong half-year performance for the period ended 30 June 2025, with profit after tax soaring 62% to US$4.6 million from US$2.8 million in the same period last year, despite a decline in sales volumes.
According to the group’s condensed consolidated reviewed financial results, revenue grew by 6% to US$19 million compared to US$18 million in 2024, driven largely by price adjustments and a favorable product mix.
BAT Zimbabwe’s Chairman, Lovemore Manatsa, said the company’s financial performance reflects resilience in a challenging environment marked by high inflation and currency volatility.
“The half-year performance demonstrates the company’s ability to adapt to the prevailing economic conditions while continuing to deliver value to shareholders,” said Manatsa.
He noted that sales volumes declined by 14%, primarily due to reduced consumer spending power and competition from cheaper, illicit products in the market.
“The persistent presence of illicit trade in tobacco products continues to exert downward pressure on legal cigarette sales. We remain committed to supporting authorities in curbing this practice to ensure a fair and regulated market,” Manatsa added.
Operating profit jumped to US$6.6 million from US$4.1 million in 2024, while earnings per share rose to US$0.21 from US$0.13, reflecting improved cost management and operational efficiency.
The company declared an interim dividend of US$0.62 per share, payable on November 22, 2025, with a record date of November 8.
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“The Board declared an interim dividend of US$0.62 per share, which we believe is a fair reflection of the group’s performance and our commitment to consistent shareholder returns,” said Company Secretary Takudzwa Mahlanza in a statement accompanying the results.
On the operating environment, the company acknowledged the positive impact of tighter monetary policy and exchange rate stability measures implemented by the Reserve Bank of Zimbabwe in the first half of the year. However, it warned that inflationary pressures remain a concern for consumer affordability.
“While the government’s monetary reforms have provided some relief, consumer spending power remains constrained. We continue to monitor the economic landscape closely and adjust our pricing strategies accordingly,” said Manatsa.
BAT Zimbabwe said it would continue investing in efficiency and sustainability initiatives across its operations, including the ongoing modernisation of its Harare factory and distribution systems.
Looking ahead, the company remains cautiously optimistic.
“Our focus remains on cost optimisation, portfolio innovation, and maintaining market leadership. Despite economic uncertainty, we are confident that the strategic measures we have put in place will sustain profitability in the long term,” the Chairman said.
As of June 30, 2025, the group’s total assets stood at US$30 million, up from US$25 million in December 2024, while cash generated from operating activities amounted to US$7.7 million.
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