PAKT profit drops 10% in Q3, declares dividend

October 24, 2024 (MLN): Pakistan Tobacco Company Limited (PSX: PAKT) experienced a fall of 9.9% YoY in its profits, earning a profit after tax of Rs8.92 billion [EPS: Rs34.91] in the third quarter, compared to a profit of Rs9.9bn [EPS: Rs38.73] in the same period last year (SPLY).

Along with the financial results, the bank has announced a Fourth interim Cash Dividend at Rs.30 per share i.e.300%.

This is in addition to the Interim Dividend already paid for Rs95 per share i.e. 950%.

Going by the results, the company's top line grew 6.2% to Rs29.93bn as compared to Rs28.18bn in SPLY.

The cost of sales rose by 5.7% but was less than proportionate to sales rise, which improved the gross profit by 6.6% to Rs18.42bn in Q3 CY24.

Accordingly, the gross margins improved to 61.5% as compared to 61.4% in SPLY.

During the period under review, other income increased by 357.8% to stand at Rs32.41m in Q3 CY24 as compared to Rs7.08m in SPLY.

On the expense side, the company's selling and distribution expenses fell 22.9% YoY to Rs1.3bn, while administrative expenses were slightly down 3.4% YoY to Rs725.87m.

On the other hand, other operating expenses rose 47.1% YoY to Rs1.27bn.

The increase in gross profit was insufficient to offset higher expenses, and, combined with a drop in finance income, led to a decline in overall profits.

The company’s net finance income fell by 38.5% and stood at Rs1.29bn as compared to Rs2.1bn in SPLY.

On the tax front, the company paid a higher tax worth Rs7.53bn against the Rs6.2bn paid in the corresponding period of last year, depicting an increase of 21.5%.

Amount in thousand except for EPS

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