British American Tobacco (BAT) Zimbabwe says cigarette consumption has dropped by seven percent, a decline the company attributes to shrinking disposable incomes amid ongoing economic pressures.
Although Zimbabwe’s exact annual cigarette consumption is not published, market forecasts suggest national usage could reach about 531 million sticks by 2030.
In a trading update for the nine months to September 30, 2025, BAT chairperson Lovemore Manatsa said tightening consumer spending was beginning to dent sales.
“Sales volumes declined by seven percent to 593 million sticks and revenue fell to 21 million United States dollars compared to the same period last year.
“This was due to stretched consumer spending, a tough economic environment and a shift in our pricing strategy from ZWG to United States dollars,” Manatsa said.
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Despite the volume and revenue decline, BAT recorded a sharp rebound in profitability.
Profit before tax rose to 11 million United States dollars, up from a three million United States dollar loss last year.
The company attributed the turnaround to reduced foreign exchange losses and lower inflationary pressure.
Operating costs dropped to 10 million United States dollars, a sixty six percent fall from last year, driven by easing inflation, lower forex losses and cost management measures.
The company said improved distribution efficiency, stronger engagements with traders and performance driven trade programmes helped stabilise volumes.
BAT described the operating environment as dynamic but relatively stable, supported by steady inflation and a firmer exchange rate.
The company also acknowledged persistent headwinds such as liquidity shortages, high borrowing costs and power outages that continue to affect productivity.
According to NewZimbabwe, these challenges remain a major concern across the manufacturing sector.
“Looking ahead, the company remains focused on reinforcing the strength and sustainability of the business through volume recovery, better product availability in all markets and stronger operational efficiency,” Manatsa said.
