BAT Earnings Update HY18
Strong brand equity pushes volumes growth
BAT’s performance in 1H18 sustained momentum from the second half of FY17, demonstrating resilience of the business and aptness of its strategy. Volumes surged 21% to 580mn cigarette sticks from 470mn in 1H17, a demonstration of organic growth as prices of sticks remained unchanged despite inflation of 2.81% in the prices of goods and services which was exacerbated by a persisting scarcity of foreign currency. Growth was driven in all segments as the premium brand including Dunhill recorded a growth of 37%, value for money (VFM) brands attained a 16% growth, whilst low-value for money brand Ascot achieved a growth of 285%. Resultantly, the group posted a 18.9% revenue growth to $19.86mn for 1H18, versus $16.70mn in 1H17 with volume increases attributable to extensive marketing activities, growing selling and marketing expenses 19% from $400k in 1H17 to $2.6mn, upon the launch of the new Madison stick.
The Inter-Horizon Group (IH Group) is a company incorporated in Zimbabwe. IH Group is a proudly Zimbabwean home grown financial services boutique firm that offers brokerage (IH Securities) and advisory services (IH Advisory) to local and international clients. IH Group′s service offering is focussed on one principal market, Zimbabwe. IH Group was founded by Dzika Danha and Salim Eceolaza, with a vision to offer world class financial services to local and international investors wanting to invest in Zimbabwe. IH Group is an independent company that is majority owned by its employees.
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