Sales volumes for British American Tobacco Zimbabwe Holdings declined during 2006, with full-year numbers closing 24 per cent lower than in 2005.

Company chairman Kennedy Mandevhani said although they posted an impressive set of results, sales volumes declined as consumers' disposable incomes continued to deteriorate which resulted in a relatively depressed demand for consumer goods across the country.
He said on a historical basis, net turnover for the financial year that ended 31 December 2006 increased by 1,532 per cent to Z$ 12.5 billion from Z$ 768 million in the prior year.
Net profit attributable to shareholders increased by 1,515 per cent from Z$ 308 million to Z$ 4.9 billion. Still, the board has resolved not to declare a dividend, as the need to preserve enough cash to fund the group's operations had priority.
He said BAT believed that the implementation of the proposed 'Social Contract', coupled with a reasonable injection of foreign currency, would put the unstable economy on a recovery path.
In the short to medium-term, he said, volumes were forecast to remain depressed and the group would continue to review operations with the objective of increasing efficiencies and enhancing shareholder value.
He also stated that the company would continue to support the outgrower scheme to boost production in a bid to maintain market share.