Khyber Tobacco : Transmission of Quarterly Accounts 31-03-2023

Contents

02	Corporate Information
03	Directors' Review
06	Directors' Review in Urdu
08	Condensed Interim Balance Sheet (Un-Audited)
10	Condensed Interim Profit and Loss Account (Un-Audited)
11	Condensed Interim Statement of Comprehensive Income (Un-Audited)
12	Condensed Interim Changes in Equity (Un-Audited)
13	Condensed Interim Cash Flow Statement (Un-Audited)
14	Notes to the Condensed Interim Financial Information

CORPORATE INFORMATION

Board of Directors
Mrs. Samera Irfan	Chief Executive/ Executive Director
Mr. Rahat Ullah	Chairman/Non-Executive Director
Mr. Zia Ur Rehman	Non-Executive Director
Ms. Sonia Farooq	Independent Director
Mr. Shahzad Javed Panni	Independent Director
Mr. Khalil Ur Rehman	Non-Executive Director
Mr. Pir Waris Shah	Non-Executive Director
Audit Committee
Mr. Khalil Ur Rehman	Chairman
Mr. Rahat Ullah	Member
Mr. Shahzad Javed Panni	Member
Mr. Zia Ur Rehman	Secretary
Human Resource Committee
Mr. Pir Waris Shah	Chairman
Ms. Sonia Farooq	Member
Mr. Zia Ur Rehman	Secretary
Senior Management
Mrs. Samera Irfan	Chief Executive
Company Secretary
Mr. Pir Farhan Shah
Bankers	Share Registrar
National Bank of Pakistan	CDC Share
MCB Bank Limited	Registrar Services Limited
Askari Bank Limited	CDC House, 99-B, Block B
Habib Bank Limited	S.M.C.H.S., Main Shahreh e Faisal
Samba Bank Limited	Karachi
External Auditors	Registered Office
Yousaf Adil & Co.	Khyber Tobacco Company Limited
Chartered Accountants	Nowshera Road, Mardan
Telephone: [phone], 844639	Fax: [phone]
Internal Auditors
Shahid Ahmad & Co.
Chartered Accountants

2 Khyber Tobacco Company Limited

DIRECTORS' REVIEW

The Board of Directors present you the brief report together with the financial information of the Company for the nine months' period ended March 31, 2023.

	Jul-March	Jul-March
Financial Highlights	2023	2022	%
	Rs. in Millions
Turnover - gross	8,349.48	2,667.97	213%
Turnover - net	5,779.97	1,150.03	403%
Cost of sales	3,703.68	874.02	324%
Gross profit	2,076.29	276.01	652%
Profit (Loss) before taxation	1,537.19	6.22	24628%
Profit (Loss) for the period	1,353.16	(37.91)	3669%

The above results indicate an overall revenue increase of 213% as compared to the corresponding period of the last year. The gross profit has increased by 652% as compared to last year profit before taxation has increased up to 24628% as compared to last year, the increase in overall turnover is mainly due to increase in sale of both local sales and export of tobacco. The price hike during the period under consideration as compared to the corresponding period has positively affected the EPS is being Rs. 234.56 as compared to loss per share of Rs. (7.89) as reported in the corresponding period.

OPERATIONAL HIGHLIGHTS

The Company continued to focus on enhancing productivity across its value chain by ensuring effective cost management, lean operations, and modernization of machinery infrastructure. KTC's export initiative during the current period resulted increase in exports of Rs. 4.748 Billion during the period under review. KTC export initiatives have significant potential to grow in the coming years generating additional valuable foreign currency inflows.

Management of the Company has focused on local sales of cigarettes and has succeeded quite a lot in their endeavors to recover from the effects of low sales during the year. Management is continuously endeavoring to expand its local market by adding new customers to its existing customer base.

FUTURE OUTLOOK

As part of the strategy, the Company is looking at both local and foreign market to increase the future revenue. Your Company is very hopeful to revive good revenue from local sales and export of tobacco. The Company is confident that we can take these markets to the next level with experience. As the technology is continuously evolving, the Company is also continuously upgrading their skills and is aligned with the technological enhancements and rapid changes in the industry.

The Local Cigarette sales are the backbone of the company's cash flows during the time of uncertain tobacco exports and have always been the main source of profitability of the company. However the easy availability of the counterfeit product has adversely affected the profitability of the company. To counter the malice, the company has adopted the strategy of differentiation of products and has decided to heavily invest to acquire modern and state of the art making and packing machines to improve the quality of its products and has therefore acquired low cost financing from its shareholders.

Khyber Tobacco Company Limited	3