Khyber Tobacco swings to Rs1bn loss in FY26

October 06, 2026 (MLN): Khyber Tobacco Company Limited (PSX: KHTC) posted a net loss of Rs1.02bn for the fiscal year ended June 30, 2026 (FY26), compared with a profit of Rs274.65m in FY25.

Loss per share (LPS) stood at Rs147.45, against earnings per share (EPS) of Rs39.67 in the preceding year.

The swing was driven by a 92.61% collapse in gross profit, a 43% rise in selling and distribution expenses and a minimum tax differential charge.

Lower finance costs, a sharp drop in other expenses and a taxation credit only partly cushioned the impact.

Net revenue from contracts with customers declined 5.71% to Rs9.33bn from Rs9.89bn in FY25. Cost of sales rose 13.29% to Rs9.19bn from Rs8.12bn, which squeezed gross profit to Rs131.12m from Rs1.77bn.

Administrative expenses fell 3.91% to Rs348.06m from Rs362.23m, and the expected credit loss on financial assets dropped 54.61% to Rs47.39m from Rs104.41m.

However, selling and distribution expenses jumped 43.34% to Rs465.29m from Rs324.61m, taking total expenses up 8.78% to Rs860.74m from Rs791.24m.

As a result, the company recorded an operating loss of Rs729.63m, compared with an operating profit of Rs983.58m in FY25.

Other income rose 6.89% to Rs22.15m from Rs20.72m. Other expenses plunged 80.37% to Rs51.30m from Rs261.30m, while finance cost fell 35.10% to Rs213.32m from Rs328.67m.

Even so, the company reported a loss before final and revenue taxes of Rs972.10m, compared with a profit of Rs414.33m in FY25.

A minimum tax differential of Rs116.57m (nil in FY25) pushed the loss before income tax to Rs1.09bn.

A taxation credit of Rs67.95m, against a charge of Rs139.68m in FY25, trimmed the net loss to Rs1.02bn.

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