August 04, 2026 (MLN): Pakistan Tobacco Company Limited (PSX: PAKT) reported a strong 30% increase in its consolidated net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs18.53bn compared to Rs14.26bn in the corresponding period last year.
Alongside the financial results, the company announced a cash dividend of Rs35 per share.
Reflecting this solid bottom-line expansion, the company's basic and diluted earnings per share (EPS) jumped to Rs72.52 for the half-year, up from Rs55.81 in 1HCY25.
The primary driver behind the performance was a powerful expansion in domestic sales volume, which easily offset a slump in exports.
Gross turnover grew by 20% year-on-year to reach Rs221.79bn, propelled by domestic turnover rising 24% to Rs215.68bn (compensating for a 40% drop in export turnover to Rs6.11bn).
After deducting Rs104.07bn in excise duties and Rs34.65bn in sales tax, net turnover surged by 20% to Rs83.07bn compared to Rs69.39bn in 1HCY25.
Despite cost of sales expanding by 15% to Rs42.15bn, strong top-line growth allowed gross profit to climb 25% to Rs40.91bn.
On the operational front, overheads grew to accommodate expanding domestic operations.
Selling and distribution costs rose 23% to Rs4.55bn, while administrative expenses increased 16% to Rs3.82bn.
Other expenses also expanded 27% to Rs2.36bn. However, the sheer momentum of gross margin growth absorbed these overheads, propelling operating profit up by 26% to Rs30.33bn.
Below the operating line, net finance income declined by 77% to Rs159.68m (down from Rs708.86m in 1HCY25), largely due to a 49% drop in finance income (Rs563.73m).
Nevertheless, profit before income tax advanced by 23% to reach Rs30.48bn.
The company absorbed a 13% higher income tax expense of Rs11.96bn for the six-month period.
Supported by strong domestic turnover and resilient operating margins, Pakistan Tobacco Company Limited securely closed the half-year period with its net profit reaching Rs18.53bn.
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STATEMENT OF PROFIT OR LOSS FOR THE HALF YEAR ENDED JUNE 30, 2026 (Rs.000) |
|||
|
Description |
2026 |
2025 |
change % |
|
Domestic turnover |
215,677,152 |
173,838,097 |
24.1% |
|
Export turnover |
6,109,565 |
10,249,091 |
-40.4% |
|
Gross turnover |
221,786,717 |
184,087,188 |
20.5% |
|
Excise duties |
(104,067,197) |
(86,870,682) |
19.8% |
|
Sales tax |
(34,650,213) |
(27,823,487) |
24.5% |
|
Net turnover |
83,069,307 |
69,393,019 |
19.7% |
|
Cost of sales |
(42,154,948) |
(36,552,169) |
15.3% |
|
Gross profit |
40,914,359 |
32,840,850 |
24.6% |
|
Selling and distribution costs |
(4,547,949) |
(3,687,781) |
23.3% |
|
Administrative expenses |
(3,822,472) |
(3,281,724) |
16.5% |
|
Other expenses |
(2,362,906) |
(1,867,402) |
26.5% |
|
Other income |
144,151 |
132,779 |
8.6% |
|
Operating profit |
30,325,183 |
24,136,722 |
25.6% |
|
Finance income |
563,725 |
1,108,182 |
-49.1% |
|
Finance cost |
(404,041) |
(399,322) |
1.2% |
|
Net finance income |
159,684 |
708,860 |
-77.5% |
|
Profit before income tax |
30,484,867 |
24,845,582 |
22.7% |
|
Income tax expense |
(11,957,569) |
(10,586,046) |
13.0% |
|
Profit for the period |
18,527,298 |
14,259,536 |
29.9% |
|
Earnings per share - basic and diluted (Rupees) |
72.52 |
55.81 |
29.9% |