Pakistan Tobacco Company has announced its results for the third quarter of 2015 declaring net turnover of Rs 33.050 billion, an after tax profit of Rs 6.3 billion rupees and an earnings per share of Rs 24.78. The company contributed Rs 66.80 billion to the government exchequer in the form of duties and taxes which is a 20 percent increase over the same period last year.
Driven by increase in excise rates, the PTC has taken an aggressive, above-inflation portfolio wide increase in June’15. As a result, not only has the price gap versus cheap duty evaded cigarettes widened but the legitimate industry has also reported a decline in volumes versus SPLY.
However, despite a tough regulatory environment and mounting socio-economic pressures, the PTC has managed to sustain itself and deliver good results owing to its organisational effectiveness. The company’s success can be attributed to investments in its operational capability, both in manufacturing and distribution, an increased focus on cost effectiveness and the development of its human capital.