Pakistan Tobacco earnings soar 134% in the Jan-Sept period

Pakistan Tobacco Company (PTC), despite a slow third quarter growth, more than doubled its profit and increased revenues by nearly a fifth for the nine-month period that ended on September 30, 2013, ….A subsidiary of British American Tobacco and the largest tobacco manufacturer in the country, PTC earned more than Rs10 million a day in profit during the first nine months of 2013.The company’s profit for the period increased 134% to Rs2.7 billion or Rs10.57 per share compared to Rs1.1 billion or Rs4.51 per share in the corresponding period of 2012. The manufacturer of Benson & Hedges and John Player Gold Leaf – the company’s high-end market brands – reported Rs22.7 billion in revenues for the nine-month period, an increase of 19% compared with Rs19 billion earned in the same period last year.

The tobacco giant has paid Rs1.4 billion income tax for the nine months, a 115% increase from Rs.653 million it paid to the national exchequer in the corresponding period of 2012. This is in addition to the Rs34 billion it paid as excise duty during the period. PTC earned Rs610 million or Rs2.39 per share during the quarter ended September 30, 2013, a decline of 12% compared with Rs691 million or Rs2.71 per share in the corresponding period of 2012. Revenues for the quarter increased 11% to Rs6.5 billion compared with Rs5.8 billion in the same quarter last year. The tax levied on retail price of each packet of cigarettes ranges from 68.5% to 81%, indicating that the tobacco industry is taxed at the highest rate.

Earlier, PTC had an impressive first half, posting a 353% increase in profit and 23% increase in revenues. The abnormal gains were a result of the rise in core profitability and other income, …By contrast, PTC’s core profitability for the quarter ended September 2013 was 9.3%, down from 11.6% in the same quarter last year. Other income for the quarter also dropped to Rs13 million compared with Rs24 million of the same quarter last year. On the other hand, core profitability increased from 6% during the first nine months of 2012 to 12% for the same period this year. Similarly, other income for the nine-month period of 2013 increased to Rs118 million, up from Rs51 million in the corresponding period of 2012…. EXPRESS TRIBUNE

PAKISTAN TOBACCO ADDS RS.10 M A DAY TO PROFITS

Pakistan Tobacco Company (PTC) managed to boost its profits by more than eight times and revenues by nearly a fifth for the quarter ended June 30, 2013 – the abnormal gains, say analysts, comes on the back of increase in core profit and other income as well as reduction in the income tax rate. A subsidiary of British American Tobacco, PTC earned more than Rs.10 million a day in profits during the second quarter of 2013. The company’s profits for the quarter increased by a staggering 886% to Rs.1 billion or Rs. 3.93 per share – it had earned Rs.101 million in the same quarter last year. The profit for the six months ending June, 2013 increased by 353% to Rs2 billion or Rs.8.18 per share.

The manufacturer of Benson & Hedges and John Player Gold Leaf – the company’s high-end market brands – reported Rs8.4 billion in revenues for the second quarter of 2013. This is an increase of 18.3% when compared with Rs7.1 billion, it earned in revenues in the same quarter last year. The half-yearly revenues increased by 22.7% to Rs16 billion. The Company also announced a cash dividend of Rs.2 per share for the financial year ending December, 2013 – this brings the total payout for the year to Rs4 per share. The tobacco giant has paid Rs.435 million in income taxes for the April-June quarter and Rs.1 billion for the first six months of 2013….. The reduced tax rate was another factor that contributed to the company’s profits.PTC paid taxes on its income at 30% –  5% lower than the pre-budget rate of 35%…. EXPRESS TRIBUNE