Karachi, April 3, 2025 – Philip Morris (Pakistan) Limited has reported an exceptional 77.5% increase in turnover for the fiscal year ending December 31, 2024.
The company’s latest financial results, disclosed to the Pakistan Stock Exchange (PSX), reveal that Philip Morris Pakistan generated a turnover of Rs 33.34 billion for the calendar year 2024, significantly higher than the Rs 18.22 billion recorded in the preceding year.
Despite this substantial rise in turnover, Philip Morris Pakistan faced considerable pressure on its profitability due to a steep increase in the cost of sales. The company’s gross profit saw a sharp decline of 54%, falling to Rs 2.82 billion in 2024 from Rs 6.14 billion in the previous year. The cost of sales for the year was reported at Rs 29.53 billion, marking a notable increase from Rs 12.08 billion in the prior fiscal year.
Adding to the financial challenges, Philip Morris Pakistan saw a surge in its distribution and marketing expenses, which escalated to Rs 6.87 billion. Administrative expenses also rose, reaching Rs 2.24 billion for the year. Despite these heightened costs, the company managed to declare a substantial increase in other income, which soared to Rs 7.53 billion compared to Rs 3.41 billion in the preceding year. This additional income provided some relief to the overall financial performance of Philip Morris Pakistan.
The company’s operating profit remained steady at Rs 1.04 billion for 2024. Meanwhile, Philip Morris Pakistan paid Rs 123.54 million in income tax for the fiscal year ending December 31, 2024. This led to a profit after tax of Rs 254.75 million, reflecting a decline from Rs 380 million reported in the previous fiscal year.
Philip Morris Pakistan continues to navigate a challenging business environment, balancing rising costs and regulatory hurdles while striving for profitability. The company’s ability to sustain its market position amid fluctuating economic conditions will be crucial in determining its financial trajectory in the coming years. Investors and market analysts will be closely monitoring how Philip Morris Pakistan strategizes to manage costs while maintaining its strong revenue growth.