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Sikhulekelani Moyo, [email protected]

CIGARETTE producer British American Tobacco (BAT) contributed more than $115 billion to the treasury through different tax heads achieving a total revenue of $288 billion for the year ended December 31, 2023, the company has said.

In a statement accompanying its end-of-year financial results for the period ended December 31, 2023, the group chairman Mr Lovemore Manatsa said key contributors to the group’s increased tax payments were excise duty, corporate tax and pay as you earn (PAYE), driven by increases in the selling price of their products and profit generated before taxation and rising inflation.

“The group and company continue to contribute to the Government Treasury through various tax heads, which include Excise Duty, Corporate Tax, Value Added Tax, Custom Duties, Pay as You Earn and Withholding Tax.

“The group and company’s contribution to the Zimbabwe Revenue Authority (Zimra) in the year under review increased from $12,5 billion (historical cost) in 2022 to $115,2 billion (historical cost) for the year ending 31 December 2023,” said Mr Manatsa.

On its financial performance, BAT Zimbabwe achieved a total revenue of $288 billion for the year ended December 31, 2023, an increase of 147 percent above last year.

“The growth was driven by the continuous price reviews in line with the currency devaluation together with revenue generated from cut-rag tobacco and leaf exports. Selling and marketing costs increased by 109 percent compared to the same period in the prior year and administrative expenses also increased by 46 percent versus last year and the increase in costs was attributable to the significant devaluation of the currency which led to suppliers revising their prices and charging more for their goods and services,” he said.

“Nonetheless the group and company recorded a significant increase in profit after tax of 131 percent compared to prior year.”

He added that the amount recorded in the period under review was $55,4 billion and the earnings per share increased to $2 684,85 from $1 163,51 in the prior year.

Mr Manatsa said the group and company’s total volume for the period under review declined by five percent from 1 054 million sticks reported in a similar period last year to 1 003 million sticks.

“Due to the challenging operating environment the group and company has recorded lower volumes and an increased credit defaulting rate from the customers. Export volumes of cut rag tobacco decreased to 282 940 kgs, a 32 percent decline during the period under review compared to prior year,” he said.

“The group also launched Vuse ‘new category’ Products into the Zimbabwean market in the month of October 2023 which realiSed a total sale of 34 000 devices.”

On dividend, Mr Manatsa said, “In view of the profit for the period under review, the board proposes the declaration of a final dividend of $ 1 186,70 per share.”  – @SikhulekelaniM1.