BAT Balances Zimbabwe Losses with Nigerian Export Gains and Cost Cuts

British American Tobacco (BAT) shares maintained a 10% advance in recent trading sessions, buoyed by divergent regional performances and strategic cost management, despite a 7% decline in cigarette consumption in Zimbabwe. The stock's rally aligns with analysts' projections of a key breakout zone, with some price targets suggesting a potential 50% upside. The company's ability to offset macroeconomic headwinds in select markets while capitalizing on export growth in others has positioned it as a resilient player in the global tobacco sector.

In Zimbabwe, BAT reported a 22% drop in revenue to $21 million for the nine months ended September 2025, driven by reduced disposable incomes and a shift to dollar-based pricing. However, the firm turned a $3 million loss into a $11 million profit before tax, attributed to lower foreign-exchange losses and inflationary pressures. Operating costs fell 66% year-on-year to $10 million, reflecting cost-discipline measures and improved distribution efficiency. Lovemore Manatsa, BAT Zimbabwe's chairperson, emphasized the company's focus on the value segment to drive volume recovery and optimize supply chains amid liquidity constraints and power outages according to the report.

Contrastingly, BAT Nigeria was recognized for its $300 million in export sales between 2022 and 2024, earning the Diamond Sponsor Appreciation Award at the 53rd Annual General Meeting of the Manufacturers Association of Nigeria. The firm's exports reached 13 West and Central African countries and the U.S., bolstering Nigeria's non-oil foreign exchange inflows. Odiri Erewa-Meggison, chairman of the MAN Export Promotion Group, highlighted BAT's role in sustaining 350,000 direct and indirect jobs across its value chain, underscoring its contribution to local industrialization and the "Made in Nigeria" agenda according to the report.

The company's dual-track strategy-navigating declining markets through cost optimization while expanding export-driven growth-has attracted investor attention. Despite challenges in Zimbabwe, BAT's broader portfolio benefits from its presence in high-growth regions and a diversified product mix. The firm's ability to balance profitability in volatile markets with strategic expansion in stable ones has reinforced its appeal to shareholders seeking long-term resilience.

Analysts note that BAT's stock has outperformed broader market indices in recent months, supported by its robust cash reserves and operational efficiency. While the Zimbabwean market faces structural headwinds, the company's focus on value segments and supply-chain optimization mitigates risks. Meanwhile, its Nigerian operations exemplify how BAT leverages its global scale to strengthen local manufacturing ecosystems, aligning with broader trends in emerging-market industrialization.