The company’s gross turnover for the year stood at Rs75.53 billion (12% higher than the previous year). ILLUSTRATION: JAMAL KHURSHID
KARACHI:
Pakistan Tobacco Company has announced its profits for the year ended December 31, 201, declaring a net profit of Rs1.73 billion rupees, compared to only Rs363.79 million in the previous year. This translates into a growth in profitability of a staggering 375% over the preceding year.
The entire growth of the company can be attributed to the growth in its top-line, with gross profits growing from Rs6.24 billion to reach Rs8.45 billion. Breaking that up, the company’s gross turnover for the year stood at Rs75.53 billion (12% higher than the previous year), out of which it paid a whopping Rs39 billion in excise duties (Rs35 billion in the previous year) and an additional Rs11 billion in sales taxes (Rs10 billion in the previous year).
Meanwhile, its selling and distribution expenses increased only 12% and administrative expenses by 4.5%; while its other operating expenses declined by 23% and other operating income increased by 67%. This effectively meant that almost all the increase in the company’s top-line went directly towards its net profits, as it also cut its net finance costs in the same period by 28%.
The company’s earnings per share clocks in at Rs6.77 per share, and it has announced a final dividend of Rs3.25 per share in addition to two interim dividends (already paid) at Rs3.05 per share.
Pakistan Tobacco Company is part of British American Tobacco, “the world’s most international tobacco group,” according to its website, with its brands sold in 180 markets around the world. Their operations began in Pakistan in 1947, making the company one of Pakistan’s first foreign investments.
The company is involved in every aspect of cigarette production, from cultivation to packaging. Its brands include Dunhill, Benson & Hedges, John Player Gold Leaf (the largest urban consumer goods brand in Pakistan), Capstan by Pall Mall, Gold Flake and Embassy.
Pakistan Tobacco is the single-largest taxpaying unit in Pakistan. The company pays more taxes than all salaried individuals in the country combined.
Published in The Express Tribune, February 21st, 2013.
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This industry pays more tax than all salaried persons combined. It spends a lot in philanthropic work and maybe providing other benefits to society (suppose it has created a 50 bed hospital in 10 cities in Pakistan). At whose cost? At what cost? Please think about it!!
If we consider whole society as one unit, including the employees of this company. Are we really on the winning side as a unit??
My opinion: This is an industry striving on promoting unhealthy habits in society, so we are better off without it. This saying that "There are other things to rectify before this" is heard at many points, and this would not help us reach anywhere. Lets us be clear and wise to identify the ills of our society.
All well and good saying quit smoking but when you read...
Rs39 billion in excise duties and an additional Rs11 billion in sales taxes.
Pakistan Tobacco is the single-largest taxpaying unit in Pakistan. The company pays more taxes than all salaried individuals in the country combined.
...might be worth putting Pakistan in a position where other companies can step up and do better first.
It's fine saying smoking kills...it's true...but it might just be possible the country has other serious issues it needs to deal with first. I think looking to reduce the income generated from tobacco tax...shouldn't be a priority. Then again, I suspect the tax money gets fraudulently used wherever it ends up...so what does it matter.
My request to all brothers and sisters is to please never smoke. It destroys lives, it kills millions every year and makes life miserable. It's leading cause of cancer and the most preventable cause of death ever known to mankind. If you smoke, please quit immediately.
glad to be part of this success story, I smoke a pack of Gold leaf Ciggs per day. cough cough
Nobody wants to hear about big tobacco's increasing profits. You wouldn't announce happily that the gun industry is booming. Same difference, as they say.