‘Illegal tobacco trade still a problem’
By CYNTHIA MWALEBRITISH American Tobacco (BAT) Zambia Plc says illegal trade in cigarettes is still a challenge for the industry.
And BAT recorded an increased turnover of K235.9 billion last year from K203 billion in 2008.
BAT finance director Benedict Mwila said this in summary results for the year ended December 31, 2009.
Mr Mwila says illicit trade, mainly from neighbouring countries, still remains a problem for the cigarette industry.
He, however, says positive strides have been made by stakeholders to address the concern.
He says that illegal trade represents a major competitor and addressing this can provide a potential source of growth for the industry and tax revenue for Government.
On performance, Mr Mwila says that revenue grew to K117.9 billion from K87.2 billion while profits from operations also grew by 32.5 percent during the period under review.
He notes that sales volume in 2009 increased by 2.4 percent despite the global economic crisis and illicit trade.
“British-American Tobacco performed well, with 2009 sales volume at 949 million sticks of cigarettes posting a 2.4 percent growth in a rather challenging economic environment,” he said.
Mr Mwila attributes the results to good price momentum and volume growth which was partially offset by significant depreciation of the Kwacha against major trading currencies.
BAT also says that levies to Government through Zambia Revenue Authority grew to K117.9 billion from K115.9 billion due to good sales.
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