Home » Industry » BAT Zimbabwe Declares Dividend

British American Tobacco Zimbabwe has declared a $0,30 per share interim dividend for the six months to June.

The interim dividend includes $0,04 to be paid from historical earnings.The dividend comes after the group reported total revenue of $20,3 million, down 12 percent on prior year $23,1 million mainly due to the discontinuation of non-core cut rag sales in June 2013.

BAT Zimbabwe realised a $5,3 million profit in the six months under review compared to a loss of $1,4 million for the half year to June last year.

Gross profit reduced by $2,2 million to 13,8 million.

“This resulted from an increase in depreciation charges and refurbishment costs from upgrades to our manufacturing equipment, higher packaging costs due to growth in sales of our 10s-format brands, salary awards to employees and higher utilities charges,” the company said.

BAT Zimbabwe managing director Mr Lovemore Manatsa, said conditions in the second half will continue to be challenging but the company is targeting volume growth.

In the interim period cigarette sales volumes were in line with the same period last year.

BAT hallmark brands, Madison and Everest, maintained sales volumes while premium international brand offering, Dunhill, continued to grow with volumes increasing by 65 percent.

Mr Manatsa said BAT plans to invest more capital towards its Zimbabwean business.

BAT has spent more than $5 million over the past five years in capital investments with about 50 percent of the amount invested towards improving its manufacturing line.

Source : The Herald