Business / Companies
BAT volumes down 16% following increase in excise duty
28 May 2013 at 11:03hrs | Views
Mandevhani, left, with outgoing finance director Richard Morgan, and Manatsa
BAT volumes are down 16% following the increase in prices after Treasury raised excise duty on cigarettes, MD Lovemore Manatsa has said.
Manatsa told the AGM that owing to the liquidity challenges the market is tight and sluggish. "Volumes are down 15-16% this year after the 50% price increase but revenues are up."
He said there were a few regions that were not performing to the norm such as the southern and eastern region. "In fact Mutare is not performing at all, due to the closure of some companies."
Manatsa was hopeful things will smooth out the trough and should have a good outturn for 2013, which is expected to show a slight increase in performance. "We are in line with the budgeted year end performance."
The group was currently operating at 60% capacity while further investments of $3 million had been made towards Makers & Packers as well as a Silo (for blending stems) equipment.
Finance director Richard Morgan said the group had however maintained a strong market share while improvements in distribution had been made.
In terms of indigenisation, the group had set up Tobacco Empowerment and Employee Trusts and was now working towards compliance for the second year, which will see an additional 10% being indigenised.
At the AGM directors fees for the past audit were approved at $32 000 and auditors fees at $57 000.
Manatsa told the AGM that owing to the liquidity challenges the market is tight and sluggish. "Volumes are down 15-16% this year after the 50% price increase but revenues are up."
He said there were a few regions that were not performing to the norm such as the southern and eastern region. "In fact Mutare is not performing at all, due to the closure of some companies."
Manatsa was hopeful things will smooth out the trough and should have a good outturn for 2013, which is expected to show a slight increase in performance. "We are in line with the budgeted year end performance."
The group was currently operating at 60% capacity while further investments of $3 million had been made towards Makers & Packers as well as a Silo (for blending stems) equipment.
Finance director Richard Morgan said the group had however maintained a strong market share while improvements in distribution had been made.
In terms of indigenisation, the group had set up Tobacco Empowerment and Employee Trusts and was now working towards compliance for the second year, which will see an additional 10% being indigenised.
At the AGM directors fees for the past audit were approved at $32 000 and auditors fees at $57 000.
Source - financial express
