Fakiha Tariq

Pakistan Tobacco Company Limited (PTC) posted the highest six-year quarterly sales in the first three months (January-March) of the ongoing calendar year 2023. The company pushed its revenues by a healthy 11.1% in 1QCY23 compared to the same period of 2022. During this quarter, PTC’s gross profit grew by an overwhelming 40.7% and net profit by a robust 38% compared to the corresponding period of the previous year, WealthPK reports. In 1QCY23, PTC made gross revenue of Rs58.7 billion and a gross profit of Rs12 billion, thus coming up with a healthy gross profit ratio of 22%. The company earned a net profit of Rs6.74 billion and gained a decent net profit ratio of 11.48% in 1QCY23. The company’s earnings per share (EPS) stood at substantial Rs26.4 during this period.

In comparison to the first quarter of CY22, PTC pushed its revenues by 11.1% from Rs52 billion to Rs58.7 billion in 1QCY23. Likewise, the gross profit surged by 40.7% in 1QCY23 from Rs9.2 billion in 1QCY22. The net profit jumped by a healthy 38% to Rs6.74 billion in 1QCY23 from Rs4.88 billion in 1QCY22. PTC’s EPS soared to Rs26.4 in 1QCY23 from Rs19.12 in 1QCY22. Pakistan Tobacco Company Limited is listed on the Pakistan Stock Exchange (PSX) under the symbol of ‘PAKT’. It is the fifth-largest company of PSX and biggest of all the three companies listed in the tobacco sector with a market capitalisation of Rs166.1 billion.

Highest five-year quarterly sales in 1QCY23

Historical analysis of sales shows that PTC posted the highest first-quarter revenues in 1QCY23 since 2018. From sales of Rs31 billion in 1QCY18, PTC kept an increasing trend, posting sales of Rs35 billion in 1QCY19, Rs38 billion in 1QCY20, Rs49 billion in 1QCY21 and Rs52 billion in 1QCY22.

PTC also hit the highest first-quarter gross profit since 1QCY19. The company posted a gross profit of Rs5.7 billion in 1QCY19, Rs6.1 billion in 1QCY20, Rs8.7 billion in 1QCY21 and Rs9.2 billion in 1QCY22. PTC followed the legacy of historic 1Q profit making on the net level. The tobacco company posted a net profit of Rs3.6 billion in 1QCY18, which dropped to Rs2.7 billion in 1QCY19. From then onwards, an increasing trend has been witnessed in net profit-making up to 1QCY23.

In the 1Q of the last six years, PTC posted the highest gross profit ratio of 22% twice in 1QCY18 and 1QCY23. In between, the company posted first quarterly gross profit ratio of 16.75%, on average. In the 1Q of last six-years, PTC reported the highest first quarterly net profit ratio of 11.48% in 1QCY23 followed by 11% in 1QCY18. From 1QCY19 to 1QCY22, the company posted first-quarterly net profit ratio of 8.4% on average.

PTC posted the highest last six-year EPS in 1QCY23. With a single dip in EPS from 1QCY18 to 1QCY19, PTC’s 1Q EPS has been on an increasing trend.

Credit: Independent News Pakistan-WealthPk