Tag: Philip Morris

Philip Morris (Pakistan) Limited announced a 67% decrease in quarterly profit on Wednesday, according to financial results sent to Pakistan Stock Exchange (PSX).

(more…)

KARACHI: Philip Morris (Pakistan) Limited on Wednesday announced a decline of 11 per cent in its profit for the half year ended June 30, 2022.

The board of directors of Philip Morris (Pakistan) Limited at its meeting held on August 10, 2022, approved the half-year financial statement of the company for period ended June 30, 2022.

READ MORE: Lucky Cement posts record Rs36.42 billion profit

According to financial results submitted to Pakistan Stock Exchange (PSX), the company declared profit after tax at Rs1.53 billion for the half year ended June 30, 2022 as compared with Rs1.72 billion in the corresponding half of the last year.

The decline in profit may be attributed to the massive increase in payment of taxes during the period under review. The charges of taxes increased sharply by 80 per cent to Rs1.25 billion for the half year ended June 30, 2022 as compared with Rs694 million in the same half of the last year.

READ MORE: Mari Petroleum declares Rs33 billion as annual profit for FY22

The profit before tax of the company was 15.77 per cent higher to Rs2.79 billion for the half year ended June 30, 2022 as compared with Rs2.41 billion in the corresponding half of the last year.

The company declared gross profit of Rs4.65 billion for the half year under review as compared with Rs4.46 billion in the same half of the last year. The net turnover came at Rs10.17 billion for the period as compared with Rs9.22 billion in the last year. Meanwhile, the cost of sales grew to Rs5.52 billion for the half year ended June 30, 2022 as compared with Rs4.76 billion.

READ MORE: UBL declares 21% decline in half year net profit

Distribution and marketing expenses of the company fell to Rs1.37 billon when compared with Rs1.43 billion. Similarly, administrative expensive also fell to Rs636 million when compared with Rs734 million in the first half of the last year.

Philip Morris (Pakistan) Limited (“PMPKL”), a public limited tobacco manufacturing company, listed on the Pakistan Stock Exchange.

PMPKL is an affiliate of Philip Morris International (“PMI”), a leading international tobacco company, listed on the New York Stock Exchange with its Operational Headquarters in Lausanne and Corporate Headquarters in New York.

READ MORE: Bank Alfalah posts 25% increase in half year profit

The company claimed as the largest manufacturers of cigarettes in Pakistan and support a wide range of charitable projects in communities. These include providing economic opportunity, empowering women and access to education.

KARACHI: Philip Morris (Pakistan) Limited, a public limited tobacco manufacturing company, on Tuesday announced over 30 per cent increase in profit after tax for the year ended December 31, 2021.

The company announced profit after tax to Rs2.30 billion for the year ended December 31, 2021 as compared with Rs1.76 billion in the preceding year.

It announced basic earnings per share at Rs37.46 for the year ended December 31, 2021 as compared with Rs16.76 in the preceding year.

READ MORE: Philip Morris declares 37% growth in half year net profit

The board of directors of the company met on Tuesday March 8, 2022 and approved financial statement for the year ended December 31, 2021.

Total turnover for the year increased to Rs17.45 billion as compared with Rs16.59 billion in the preceding fiscal year. The company recorded decline in cost of sales to Rs9.97 billion as compared with Rs10.138 billion.

The company curtailed administrative expenses to Rs1.4 billion in 2021 as compared with Rs1.62 billion in the preceding year.

READ MORE: Philip Morris declares 39% decline in quarterly profit

It declared profit before taxation at Rs3.34 billion for the year ended December 31, 2021 as compared with Rs2.55 billion in the preceding year.

Philip Morris (Pakistan) Limited (PMPKL) is a public limited tobacco manufacturing company and listed on the Pakistan Stock Exchange. PMPKL is an affiliate of Philip Morris International (PMI), a leading international tobacco company, listed on the New York Stock Exchange with its Operational Headquarters in Lausanne and Corporate Headquarters in New York.

READ MORE: Philip Morris declares Rs1.76bn after tax annual profit

The company claimed to be the largest manufacturers of cigarettes in Pakistan and support a wide range of charitable projects in communities where it sources and manufacture our tobacco. These include providing economic opportunity, empowering women and access to education.

KARACHI: Philip Morris (Pakistan) Limited on Friday declared over 37 per cent growth in net profit for the half year ended June 30, 2021.

Philip Morris (Pakistan) Limited is one of the largest manufacturers of cigarettes in the country.

The company posted a profit after tax at Rs1.72 billion for the six months period ended June 30, 2021 as compared with Rs1.25 billion in the same period of the last year.

According to the half yearly report issued by the company, Pakistan’s economy has started gaining momentum and we appreciate the Government’s efforts in this regard especially towards ease of doing business, growth in large scale manufacturing, strengthening of governance, widening tax net etc.

However, the spread of new variants (locally and globally) amidst the ongoing fourth wave of the pandemic might pose a risk to this growth trajectory. While dealing with the pandemic our priority remained the safety of our employees and stakeholders.

In line with the Government directives, the company encouraged the employees for vaccination and the Company’s offices across the Country are operational with relevant SOPs in place with the close monitoring of the pandemic situation.

No change in excise rates on cigarettes during federal budget 2020/2021 proved to be positive for Government Revenue and the Company’s contribution to the National Exchequer during fiscal year (July’20-Jun’21) in the form of excise duty, sales tax and other government levies, which stood at PKR 24,052 million (higher by 18.7 per cent compared to the previous fiscal year July’19-Jun’20). No change in excise rates during the fiscal year 2020/21 also led to consumer price stability of the legitimate cigarette brands.

However, the issue of non-tax paid illicit cigarettes continues to have a detrimental effect with a market share of approximately 40% (which in 2013 was 23%) resulting in an annual loss of PKR 70-77 billion (estimated) to the national exchequer. The past decade has witnessed a growth of local cigarette manufacturers across Pakistan (including AJK) manufacturing over 100+ brands, selling at a lower price than the minimum price prescribed under tax laws for the purposes of levy and collection of federal excise duty i.e. PKR 63 per pack.

Such products can be found in the market being sold between PKR 25 to PKR 38 per pack. In addition to violating the tax laws, these manufacturers continue to advertise and incentivize cigarette smokers to purchase their brands by offering cash prizes, gifts and travel opportunities, which is a violation under tobacco advertisement control guidelines issued by the Federal Ministry of National Health Services Regulations and Coordination.

During the six months ended June 30, 2021, despite all the challenges above, the Company’s net turnover stood at PKR 9,224 million reflecting an increase of 4.7% versus the same period last year. During the six months, the Company’s contribution to the National Exchequer, in the form of excise duty, sales tax and other government levies, stood at PKR 14,435 million (higher by 15.5% compared to the same period last year) reflecting 60% of half-yearly Gross Turnover.

The Company recorded Profit After Tax of PKR 1,720 million for the six months ended Jun 30, 2021 (compared to Profit After Tax of PKR 1,253 million for the same period last year) equivalent to 7.2% of half-yearly Gross Turnover.

Distribution & Marketing expenses showed an increase over the prior year reflecting our continued commitment to allocating resources for initiatives behind building brands and route to market activities whilst remaining compliant with applicable laws that can earn the best returns coupled with lower expenses in Q2’20 driven by COVID 19 lockdown measures.

Further, the company continues to find efficiencies in Administrative Expenses to ensure the increase remains under inflation.

During the period, we continued our efforts to engage with the Government highlighting concerns towards the illicit sector and lack of a level playing field. The announcement of the Federal Budget 2021/22 in Jun’21 saw unaltered excise rates on cigarettes which can continue to support Government Revenues during the ongoing fiscal year and the stability of the consumer prices of legitimate cigarettes brands.

Further, in the Finance bill 2021/22 a requirement to obtain brand registration certificates for specified sectors was also tabled and is now being formalized with the issuance of Sales Tax General Order (STGO) dated August 3, 2021 which requires manufacturers of specified goods including tobacco to obtain brand registration certificates.

Furthermore, the Company is pleased to observe that the Government has made strides in creating checks and balances for goods coming in from the Azad Jammu & Kashmir (AJ&K) trade route to ensure proper taxation of goods arriving in Pakistan. We also continue to support the introduction of the Track and Trace system and strongly urge the Government for its sooner implementation as it will be an effective tool to supplement enforcement efforts against tax evasion.

KARACHI: Philip Morris (Pakistan) Limited on Thursday declared a profit of Rs1.76 billion for the year ended December 31, 2020 as against loss of Rs1.96 billion in the preceding year.

A statement said that the company recorded profit after tax of Rs1.765 billion for the year ended December 31, 2020 compared to loss after tax of Rs1.980 billion for the year ended 2019.

The increase in operating profit before tax compared to last year is mainly due to significant decrease in ‘other expenses’ by Rs2.732 billion. This decrease in other expenses is primarily attributable to one-off impairment and employee separation cost charged on account of closure of our factory in Kotri during 2019.

During the year ended, the Company’s volume declined by 20 percent mainly reflecting the pressure faced by the legally compliant tax paying cigarette sector from the expanding illicit one, which now accounts for approximate 37 percent of the total market for the year 2020 versus 33.1 percent for the year 2019 (Retail Audit).

The Company’s contribution to the National Exchequer, for the year ended December 31, 2020, in the form of excise duty, sales tax and other government levies, stood at Rs22.110 billion, a decrease of 6 percent, compared to the preceding year.

This is mainly attributable to the excessive excise duty increases of 93 percent (Value Tier) during Federal Budgets of September 2018 and June 2019 that stretched the price gap between duty evaded and duty paid cigarettes which are selling at lower prices than the minimum price prescribed under tax regime with respect to levy and collection of federal excise duty i.e. Rs63/ per pack.

In March 2020, the government issued a Statutory Regulatory Order No. 72(I)/2020 further restricting advertising, promotion and sponsorship of tobacco and tobacco products leading to a lack of a level playing field for law abiding corporates.

During the period ended December 31, 2020 the Company’s domestic net turnover stood at Rs13.983 billion resulting in an increase of 7 percent driven by the excise led price increase in June 2019 coupled with price increase in February 2020, both were essential to offset the adverse impact of severe volume decline of 20 percent versus 2019.

During the same time, the Company’s exports turnover stood at Rs2.613 billion (US$ 16.3 million) showing a significant increase as compared to last year shows the Company’s commitment to support Pakistan’s goals of increasing exports and earn foreign exchange for the Country.