BAT Offsets Zimbabwe Declines with Increased Nigerian Exports and Reduced Expenses

Shares of British American Tobacco (BAT) have sustained a 10% gain in recent sessions, supported by varying regional results and effective cost controls, even as cigarette sales in Zimbabwe dropped by 7%. This upward movement in the stock price matches analyst expectations for a significant breakout, with some forecasts indicating the possibility of a 50% increase. BAT’s capacity to counteract economic challenges in certain markets while leveraging export opportunities in others has solidified its reputation as a robust contender in the international tobacco industry.

In Zimbabwe, BAT posted a 22% decrease in revenue to $21 million for the nine months ending September 2025, largely due to shrinking disposable incomes and a transition to pricing in U.S. dollars. Despite this, the company reversed a $3 million loss to achieve an $11 million pre-tax profit, thanks to reduced foreign exchange losses and less inflationary impact. Operating expenses were cut by 66% year-over-year to $10 million, reflecting strict cost controls and more efficient distribution. BAT Zimbabwe’s chairperson, Lovemore Manatsa, highlighted the company’s emphasis on the value segment to boost sales volumes and streamline supply chains amid cash shortages and power disruptions

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In contrast, BAT Nigeria was honored for generating $300 million in export revenue from 2022 to 2024, receiving the Diamond Sponsor Appreciation Award at the 53rd Annual General Meeting of the Manufacturers Association of Nigeria. The company’s exports reached 13 countries across West and Central Africa as well as the United States, enhancing Nigeria’s non-oil foreign exchange earnings. Odiri Erewa-Meggison, chair of the MAN Export Promotion Group, pointed out BAT’s impact in supporting 350,000 jobs directly and indirectly throughout its value chain, highlighting its role in advancing local manufacturing and the “Made in Nigeria” initiative .

BAT’s two-pronged approach—managing declining markets through cost reductions while pursuing export-led expansion—has drawn investor interest. Although Zimbabwe presents ongoing difficulties, BAT’s diverse portfolio and presence in rapidly growing markets provide stability. The company’s skill in maintaining profitability in unpredictable environments while strategically growing in more stable regions has increased its attractiveness to investors seeking enduring strength.

Experts observe that BAT’s shares have outperformed broader market benchmarks in recent months, bolstered by strong cash flow and operational effectiveness. While Zimbabwe continues to face structural obstacles, BAT’s focus on value-driven segments and supply chain improvements helps reduce exposure to risk. At the same time, its Nigerian business demonstrates how BAT uses its global reach to reinforce local manufacturing, aligning with wider trends in industrial growth across emerging markets.