PAKT 1HCY26 profit surges 30%, declares Rs35 dividend

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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