BRITISH American Tobacco Zimbabwe (BAT Zim) has issued a profit warning indicating a strong rebound in profitability for the year ended December 31, 2025, compared to the prior year.
In a notice to shareholders, the group said its upcoming financial results are expected to show a “significant improvement” from 2024, when earnings were heavily weighed down by exchange losses and inflation-related adjustments.
The company attributed the anticipated recovery primarily to improved currency stability and the absence of major foreign exchange losses that impacted the previous financial year.
In 2024, BAT Zimbabwe recorded substantial monetary losses linked to the revaluation of foreign currency-denominated balances and the effects of hyperinflation accounting standards.
The transition from the Zimbabwe dollar (ZWL) to the Zimbabwe Gold (ZiG) currency in April 2024, coupled with high inflation levels before the company adopted a multicurrency billing system, had significantly distorted prior-year performance.
However, in 2025, the group benefited from a more stable operating environment and the positive impact of its shift to multicurrency billing, which improved revenue collection and reduced exposure to local currency volatility.
BAT Zim said these factors have materially improved its financial position, resulting in a notable variance between the two reporting periods.
The company cautioned that the expected results constitute price-sensitive information and urged shareholders to exercise caution when trading in its shares until the full financial statements are released.
The group is expected to publish its audited results on or before March 31, 2026. – TML