Export volumes have increased by 163 per cent in the first quarter of 2022 for British American Tobacco (BAT) thanks to cut rag and leaf tobacco shipments, reports AllAfrica.

While the company’s cigarette sales remained “flat” during the first quarter, the cut rag tobacco export volume reached a historic high with a 147 per cent growth in net turnover compared to the previous year.
"Export volumes of leaf and cut rag tobacco were up by 163 percent in the three months' period under review compared to prior year due to increased demand of leaf from our export markets," BAT said.
The company said it was closely monitoring the situation in the Ukraine and that it anticipates an increase in the cost of production. According to AllAfrica, with regard to the operating environment, BAT recorded a rapid rise of prices resulting in increased inflation.
"The trading environment for the three months ended March 31 2022 was characterised by significant increase in inflation and exchange rate volatility. Additionally, the cigarette excise ad valorem regime was changed from 20 percent to 25 percent with effect from January 1, 2022. The challenging economic environment resulted in a decline in consumer spending," an official statement read.