The trading environment remained challenging in the period, characterised by an inflationary environment, and thereby impacting prices for retail commodities. Group performance was impacted by the aforementioned challenges and saw cigarette volumes slide 5% to 1.003bn sticks from the 1.054bn sticks sold in the previous comparable period. Cut rag export volumes also saw a dip in the current period having shed 32% y/y to 282,940kgs. The company notably saw increased defaults from its customers. Despite this, BAT Zimbabwe’s historical revenue grew 937% to ZWL$180.96bn from the ZWL$17.445bn registered in FY22. Selling and marketing costs as a percentage of sales came in at 6.74% versus 8.99% in the previous period whilst administrative costs trailed revenue growth in nominal terms, increasing 486% to ZWL$13.39bn. As a result, BAT saw EBITDA growing at 1,210.56% to ZWL$101.88bn with a corresponding margin of 56% versus a margin of 45% in FY22. The group registered exchange losses of ZWL$28.19bn, which resulted in other losses netting ZWL$27.98bn. BAT registered a PAT of ZWL$80.95bn for FY23, up 1,232% from the ZWL$6.08bn posted in the previous financial year. The group remained in a positive cash position of ZWL$49.60bn, operating on an OCF/EBITDA of 42%. The board declared a final dividend of ZWL$1,186.70 per share, with shares trading cum dividend till the 15th of April.
