HARARE - The adoption of a multi-currency system has resulted in an increase in the sales volumes of cigarettes, a leading tobacco company has announced. British American Tobacco (BAT) Zimbabwe chairman, Kennedy Mandevhani, told shareholders that domestic cigarette sales volumes increased by 18 per cent compared to the same time last year. (Pictured: He was presenting the company’s unaudited financial results for the six months ending 30 June 2009. “This is attributed primarily to the stable currency and the improving economic environment which in turn results in increased disposable income and demand for consumer goods,” Mandevhani said. He said among the various fiscal and monetary changes introduced in 2009, trading in multiple currencies was officially recognized, with the greenback being the dominant trading currency in the economy.
The company adopted the US dollar as the functional and reporting currency from 1 January 2009. “As our economy moves on the recovery path, there has been evidence of positive changes in the trading environment which has resulted in an improved performance for the company over the first half of 2009,” the chairman said. The company posted an operating profit of US$223 000 and said it was generated from a net turn over from operations of US$5,3 million. “Whilst sales prices have been held at lower levels than that found in the sub region, cost containment initiatives and trade activities have been successful in ensuring that the business has continued to increase sales volumes without increasing overheads,” Mandevhani said.