British American Tobacco Zambia (LuSE:BATZ) reported an 11.7% year-on-year (y/y) decline in net profit to K21.5 million for the six-month period ended June 30 2015. Earnings per share came in at K0.10 (K0.11 in H1 2014):
The drop was primarily driven by:
This caused operating profit to decline by 17.1% year-on-year to K30.8 million.
BATZ recorded a 27% y/y growth in cash generated from operations to K39.9 million. Net cash-flow for the period increased by 58% y/y to K23.6 million. The company declared an interim dividend on K0.08 per share (K16.997 million) to shareholders of record as of September 30 2015. The dividend will be paid on October 20 2015.
In the outlook for the second half of the year, the chairman said:
Trading conditions are anticipated to remain challenging in the second half of the year against the backdrop of forecasted reduced consumer spending and decreased domestic investment caused by the monetary policy tightening.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *