HARARE – British American Tobacco Zimbabwe (Holdings) Limited has delivered a resilient half-year performance, growing profit attributable to shareholders by 6 percent to US$4.6 million and operating profit by 2 percent despite a 3 percent decline in sales volumes and weak consumer demand.
In its reviewed condensed consolidated interim financial statements for the half year ended 30 June 2026, the company reported revenue of US$12.18 million, down 6 percent from US$13.0 million in the prior year, weighed down by affordability pressures and downtrading. However, cost discipline and benefits from operating-model changes implemented in 2025 protected profitability, with gross profit holding at US$8.24 million after containing cost of sales to US$3.93 million.
Operating profit rose to US$6.74 million from US$6.63 million, while profit attributable to shareholders increased to US$4.606 million from US$4.33 million. Basic, diluted and headline earnings per share each grew by 5 percent to US$0.22 from US$0.21. The company declared an interim dividend of US$0.11 per share, payable on or about 16 November 2026 to shareholders on record on 30 October 2026.
The company said the first half was challenging as disposable incomes remained constrained despite relative currency stability. He noted that consumer demand remained weak and affordability pressures persisted, which was reflected in lower sales volumes, revenue and earnings, but said it remained resilient with continued cost discipline helping to protect profitability.
BAT remained cash generative, although working capital absorption weighed on cash conversion. Closing cash stood at US$4.51 million, down from US$7.36 million at 31 December 2025, after absorbing dividend payments of US$4.55 million, while net current liabilities improved to US$2.66 million from US$3.58 million at year-end.
On the legacy blocked funds, the company noted that its US$16.4 million claim was settled in 2025 through a US$-denominated Treasury Bill maturing on 19 September 2050. The bill is carried at a fair value of US$957,410 as at 30 June 2026 after a remeasurement loss of US$268,964 during the period, reflecting a market discount rate of 12.4 percent.
Looking ahead, the company said focus will remain on procurement savings, local sourcing, factory productivity, route-to-market execution and brand protection to stabilise revenue and protect margins. It said the outlook for the remainder of 2026 remains cautious, with consumer affordability, regulatory developments and the wider economic environment likely to remain important influences on performance.
The company said it will maintain prudent capital allocation, balancing operational funding, foreign supplier obligations, management of the long-dated Treasury Bill asset, and shareholder returns.
