⚡ Flash Summary

Pakistan Tobacco Company (PAKT) reported its condensed interim financial results for the nine-month period ended September 30, 2025. The company experienced growth momentum with Gross Turnover and Net Turnover increasing by 5% and 16%, respectively, compared to the same period last year. Export turnover grew significantly by 72%, offsetting a 3% volume decline in the domestic combustible cigarette business. The Board of Directors has declared an interim dividend of PKR 30 per share, bringing the total dividend to PKR 130 per share.

📌 Key Takeaways

• 📈 Gross Turnover increased by 5% to PKR 274.892 million in Jan-Sep 2025 from PKR 262.423 million in Jan-Sep 2024.
• 💸 Net Turnover increased by 16% to PKR 102.548 million in Jan-Sep 2025 from PKR 88.119 million in Jan-Sep 2024.
• 🌍 Export turnover grew impressively by 72% in the nine-month period.
• 🚬 A 3% volume decline was observed in the domestic combustible cigarette business.
• 💰 Gross Profit increased to PKR 52.418 million in Jan-Sep 2025 from PKR 42.060 million in Jan-Sep 2024.
• 📊 Operating Profit increased to PKR 40.463 million in Jan-Sep 2025 from PKR 30.862 million in Jan-Sep 2024.
• ✅ Profit Before Tax (PBT) increased to PKR 41.557 million from PKR 35.615 million.
• ✅ Profit After Tax (PAT) increased to PKR 24.518 million from PKR 19.915 million.
• ✔️ Earnings Per Share (EPS) increased to Rs 95.96 from Rs 77.95.
• 💰 An interim dividend of PKR 30 per share was declared on September 26, 2025, bringing total dividends to PKR 130 per share.
• 📉 Excise duties decreased from (133,873,541) to (130,280,153).
• 💲 Sales tax increased from (40,430,215) to (42,064,030).
• 💵 Finance income decreased from 5,898,612 to 1,685,407.

🎯 Investment Thesis

Based on the information, a HOLD recommendation is appropriate. The company’s revenue growth, export performance, and increased profitability are positive indicators. However, the challenges posed by the domestic market and illicit cigarettes warrant a cautious approach. A price target requires further analysis but can be estimated based on peer multiples and growth rates. The time horizon is medium-term (6-12 months) pending more clarity on regulatory and market dynamics.