Karachi, October 23, 2023 – Philip Morris (Pakistan) Limited, a leading cigarette manufacturer, has reported a substantial 72 percent decline in profit for the first nine months of the calendar year 2023.
The company released its financial results for the period from January to September 2023 to the Pakistan Stock Exchange (PSX).
Philip Morris recorded a profit after tax of Rs 659 million during the first nine months of 2023, down significantly from Rs 2.37 billion in the corresponding period of the previous year. The company’s board of directors met on October 23, 2023, and approved the financial results for the quarter ending on September 30, 2023.
Analysts attribute this dramatic profit decline to the high taxation regime on tobacco use in Pakistan. The introduction of new taxation measures has adversely affected cigarette sales in the country. Additionally, the industry is grappling with the issue of smuggled cigarettes, which have been on the rise due to the high prices of regulated cigarette brands.
Philip Morris’ gross profit for the first nine months of 2023 was reported at Rs 5.33 billion, compared to Rs 6.88 billion in the same period of the previous year. The company’s net expenses rose to Rs 3.64 billion during the nine months of the current calendar year, in contrast to Rs 2.87 billion in the previous year.
The declining profit for Philip Morris Pakistan underscores the challenges faced by the tobacco industry in Pakistan due to taxation policies and the presence of illegal, untaxed cigarette products in the market.
