Karachi: Pakistan Tobacco Company Limited (PTC) has reported a robust performance for the first half of 2025, driven by its strategic focus on export growth and operational efficiencies, according to its recently released interim financial statements for the period ending June 30, 2025. The company’s gross turnover saw a moderate move, while net turnover increased with a big move, indicating a solid financial trajectory for the year.
The company’s performance aligns with expectations, and its commitment to addressing consumer needs through a diverse portfolio of multi-category cigarettes and modern oral products remains steadfast. PTC’s strategic investments in its core segment of combustible cigarettes and modern oral brand, Velo, which now holds a 4% share of the company’s net turnover, have been critical in maintaining its market position. The addition of 30,000 new consumers to the Velo brand demonstrates growing consumer acceptance of reduced-risk alternatives.
Despite a significant move in the federal excise duty (FED) on cigarettes during Fiscal Year 2022-23, which reshaped the tobacco industry landscape, PTC has successfully navigated these challenges. The increase in illicit cigarette market share to 58% has adversely impacted the legitimate industry, leading to substantial government revenue losses. Nevertheless, PTC’s export-led strategy has mitigated some of these impacts, with a remarkable surge in export turnover driven by the Tobacco Prized Leaf and Velo products being shipped to various international markets.
According to information available from the Pakistan Stock Exchange (PSX), PTC’s gross profit saw a very large or significant move, and the operating profit increased with a very large or significant move, reflecting the company’s successful focus on high-margin, export-led growth and strategic pricing. The profit before tax and profit after tax also experienced a very large or significant move, underscoring the company’s financial resilience.
PTC’s interim dividend declaration of Rs. 40 per share, combined with an earlier interim dividend of Rs. 60 per share, brings the total dividend for the first half of 2025 to Rs. 100 per share. This decision reflects the company’s commitment to delivering long-term value to its stakeholders through strategic interventions, innovation, and cost optimization.
PTC’s focus on becoming a globally competitive, export-driven enterprise is evident in its strategic shift towards international markets, which has successfully offset a decline in domestic cigarette volumes. As the company continues to address challenges in the domestic landscape, it remains well-positioned to contribute to Pakistan’s export-led growth agenda and sustain its performance through the remainder of 2025 and beyond.