British American Tobacco (BAT) Zimbabwe contributed US$8.1 million to the national fiscus during the reporting period, underscoring the company's continued role in supporting the country's economy.

Presenting the group's performance report this week, BAT company secretary, Lovemore Manatsa, highlighted the scale of the contribution.

"BAT Zimbabwe continues to contribute to the country's development in various ways, including payment of taxes to the Exchequer. Taxes paid for the period under review, including Excise Duty, Corporate Tax, VAT, Customs Duties, PAYE and Withholding Tax, which came to a total of over USD8.1 million," he said.

Despite the contribution, the company faced operational challenges. Sales volumes fell by 14%, largely due to weaker consumer spending and broader macroeconomic headwinds. Revenue also declined by 28%, dropping from US$18.1 million to US$13 million compared to the same period last year. The fall was attributed to constrained consumer incomes, a tough trading environment, and a shift in pricing strategy from ZWG to US$.

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Costs, however, moved in the opposite direction. The cost of sales rose by 31%, climbing to US$4.1 million from US$3.4 million in 2024, driven mainly by higher raw material prices.

Despite these pressures, BAT recorded a profit before tax of US$6.6 million, a marked recovery from the US$10.6 million loss posted during the same period last year.

"Zimbabwe's ability to navigate the ever-changing macro-economic landscape and deliver long-term value to all stakeholders. Our optimism is grounded in the resilience of our people, our brands and unwavering commitment to innovation and transformation," added Manatsa.