Pakistan Tobacco net profit climbs 23% on robust exports and margins

Nine-month earnings cross Rs24.5bn as a 72% surge in export sales and improved operational efficiency drive growth, despite a sharp drop in finance income

Pakistan Tobacco Company Limited (PSX: PAKT) reported a profit after tax of Rs. 24.52 billion for the nine months ended September 30, 2025, a 23.1% increase from Rs. 19.91 billion in the same period last year.

Key Financial Highlights (9MFY25):

  • Earnings Per Share (EPS): Rose to Rs. 95.96 from Rs. 77.95.

  • Dividend: Declared a dividend of Rs. 20 per share.

  • Net Turnover: Grew 16.4% to Rs. 102.55 billion, fueled by a 71.6% jump in export sales.

  • Gross Profit: Surged 24.6% to Rs. 52.42 billion, with the gross margin expanding to 51.1%.

  • Operating Profit: Increased 31.1% to Rs. 40.47 billion, highlighting strong operational control.

  • Net Profit Margin: Improved to 23.9% from 22.6% in 9MFY24.

The company’s performance was powered by a dual engine: a stellar 71.6% growth in export turnover and a significant expansion in gross margins, which rose to 51.1%. This demonstrates enhanced pricing power and operational efficiency, as the cost of sales grew at a slower rate than net turnover. The bottom-line growth was achieved despite a substantial 77% decline in net finance income, underscoring the strength of the core operational performance. Effective cost management was also evident in a slight reduction in selling and distribution expenses.

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