British American Tobacco Zimbabwe (BAT) has upgraded its manufacturing operations with energy-efficient lighting and vacuum pump systems as it steps up efforts to reduce energy costs, improve profitability and lower its environmental footprint.
The cigarette manufacturer said the investment forms part of a broader energy management strategy centred on improving efficiency, reducing operating costs and supporting long-term sustainability.
“We implement an energy management strategy to improve efficiency, reduce costs and lower our environmental impact,” BAT said in its 2025 annual report.
“During the year, we replaced conventional lighting with LED systems and installed high-efficiency vacuum pumps to optimise energy use. We are also investing in renewable energy through the installation of rooftop solar panels at our facilities.”
The company said it monitors energy performance through key performance indicators, including energy consumption per unit of production, to improve operational efficiency.
BAT added that its environmental initiatives are designed to support long-term value creation while contributing to broader sustainability goals.
“These initiatives go beyond regulatory compliance or short-term milestones; they reinforce our long-term commitment to responsible business practices and supporting the global sustainability agenda,” the company said.
The investments come as BAT navigated a difficult trading environment during the year ended December 31, 2025, with revenue declining to US$29,1 million from US$36,4 million due to weaker consumer demand, reduced affordability and limited scope for price increases.
Despite the decline in revenue, operating profit increased significantly to US$16,1 million, supported by lower production costs, manufacturing efficiencies and continued cost containment measures.
Total assets rose to US$27,8 million, reflecting improved financial performance and ongoing investment in strategic projects.
BAT also remained a significant contributor to the fiscus, paying US$15,2 million in excise duty, value-added tax, customs duty, Pay As You Earn (PAYE) and corporate tax during the year.
Meanwhile, the company continued investing in its infrastructure, spending US$0,6 million refurbishing its Harare offices by December 31, 2025. A further US$0,05 million has been earmarked to complete the project this year.
“The project reflects the company’s ongoing commitment to providing a modern and compliant workplace. The expenditure has been recognised as capital work-in-progress in accordance with IAS 16 Property, Plant and Equipment,” BAT said.