PAKT reports 10% profit decline in Q3, announces dividend

Pakistan Tobacco Company Limited (PSX: PAKT) saw a 9.9% drop in its year-over-year income. In the third quarter, it made a profit after taxes of Rs8.92 billion (EPS: Rs34.91), down from Rs9.9bn (EPS: Rs38.73) at the same time last year (SPLY).

The bank has announced a Fourth Interim Cash Dividend of Rs.30 per share, or 300 percent, in addition to the financial results. In addition to the 950% Interim Dividend (Rs95/share), this is being paid out.

Revenue and profit rise, Net earnings decline in Q3

Additionally, the findings show that the company’s top line increased by 6.2% to Rs29.93bn, from Rs28.18bn in SPLY.

In Q3 CY24, gross profit increased 6.6% to Rs18.42bn, achieved by a 5.7% increase in cost of sales that was less than proportional to sales increases. Since then, gross margins have increased to 61.5% from 61.4% in SPLY. Compared to SPLY’s Rs7.08m, other income in Q3 CY24 was Rs32.41m, an increase of 357.8 percent.

In terms of spending, the business saw a 22.9% year-over-year decline in selling and distribution expenses to Rs1.3bn and a 3.4% year-over-year decline in administrative expenses to Rs725.87m.

When compared to the same period last year, other operational expenses increased by 47.1% to Rs1.27bn. A combination of falling financing income and an increase in expenses meant that overall earnings fell short of expectations, even if gross profit had surged.

In SPLY, the company’s net financing income was Rs2.1 billion, but it dropped 38.5% to Rs1.29 billion. In terms of taxes, the business paid out more cash this time around, totaling Rs7.53bn, up from Rs6.2bn in the same period the previous year, an increase of 21.5%.