Islamabad: Khyber Tobacco Company Limited (KTC), one of Pakistan's prominent tobacco producers, has reported a significant decline in both production and sales for the fiscal year ending June 30, 2024. The company, presenting its 69th annual report, highlighted a substantial reduction in output and a severe drop in earnings compared to the previous year.

The report detailed a drastic decrease in the production of cigarettes and cut tobacco, with cigarette production falling by nearly 50 percent to 635.00 million sticks from 1,301.11 million in 2023. Similarly, cut tobacco production declined to 1,063,613 kilograms, down from 1,988,686 kilograms the previous year. According to information available from the Pakistan Stock Exchange (PSX), the re-dried tobacco production also saw a reduction, decreasing from 6,508,107 kilograms in 2023 to 5,512,983 kilograms in 2024.

Financially, KTC faced a tough year, with net sales plummeting to 3,113.70 million rupees from 7,434.50 million in 2023. This decline was reflected in the company’s profitability, as it reported a loss before taxation of 1,018.099 million rupees, a stark contrast to the profit of 1,035.182 million rupees in the previous fiscal year. The loss after taxation stood at 1,021.997 million rupees, compared to a profit of 1,998.400 million rupees the year before.

Operational challenges were compounded by economic and political instability, high inflation rates, and low export orders. The company's balance sheet also reflected the downturn, with capital and reserves declining by 1,097.40 million rupees. Despite these challenges, KTC's management has undertaken significant measures, including modernization of machinery and stringent cost management, to maintain competitiveness and operational efficiency.

KTC remains hopeful for recovery in the coming year, with plans to increase export sales and local market penetration, particularly focusing on re-dried and cut tobacco products in international markets. This optimism is driven by the initial sales orders secured in the first quarter of the fiscal year 2025.

The company's commitment to quality and operational excellence continues, alongside its focus on environmental and social responsibilities, which remain integral to its corporate strategy. As the global market conditions evolve, KTC is positioned to adapt and potentially overcome the setbacks experienced in 2024.