Pakistan Tobacco : Transmission of Financial Statements for the 1st Quarter ended on March 31, 2022

Condensed Interim Financial Statements

for the three months period ended March 31, 2022

Corporate�Information

Board�of�Directors

Zafar Mahmood

Chairman & Non-Executive Director

Syed Ali Akbar

MD / CEO & Executive Director

William Pegel Director Finance / IT

Syed Asad Ali Shah

Legal & External Affairs Director

Syed Javed Iqbal Non-Executive DirectorWael Sabra Non-Executive DirectorShannon Luke McInnes Non-Executive DirectorHuseyin Ozsan Ozbas Non-Executive Director

Muhammad Riaz Non-Executive Director

Asif Jooma Non-Executive Director

Lt. Gen. (R) Masood Aslam Non-Executive Director

Belinda Ross Non-Executive Director

Audit�Committee

Muhammad Riaz

Lt. Gen. (R) Masood Aslam

Belinda Ross

Wael Sabra

Asif Jooma

Usman Javed (Secretary)

Company�Secretary

Nauman Masood Butt

Registered�Office

Pakistan Tobacco Company Limited Serena Business Complex, Khayaban-e-Suhrwardy. P.O. Box 2549, Islamabad-44000 Telephone: [phone] Fax: [phone]

Web:www.ptc.com.pk

Factories

Akora Khattak Factory P.O. Akora Khattak

Tehsil and District Nowshera, Khyber Pakhtunkhwa

Telephone: [phone] Fax: [phone]

Jhelum Factory

G.T. Road, Kala Gujran Jhelum

Telephone: [phone] Fax: [phone]

Bankers

MCB Bank Limited

MCB Islamic Bank Limited Habib Bank Limited National Bank of Pakistan Citibank N.A.

Standard Chartered Bank (Pakistan) Ltd. Deutsche Bank AG

Auditors

KPMG Taseer Hadi & Co. Chartered Accountants

Sixth Floor, State Life Building No. 5

Jinnah Avenue, Blue Area, Islamabad. 44000

Telephone: [phone]

Fax: [phone]

Share�Registrar

FAMCO Associates (Pvt.) Ltd.

8-F, Near Hotel Faran, Nursery, Block 6, P.E.C.H.S, Shahrah-e-Faisal,

Karachi

Ph: [phone]

Directors'�Review

The Directors present the performance of the Company for Quarter 1, 2022

Q1'22 stood testament to PTC's core values of grit and resilience as the Company continues to grow from strength to strength, focusing on leveraging on our strong consumer base. Capstan by Pall Mall (CbPMO) continues to lead the market and a number of initiatives were executed in Q1'22 to grow this momentum and to maintain its prominence with our loyal consumer base.

FY 2021-22 budget decision to maintain status quo vis a vis excise rates on cigarettes has had a positive outcome for Government revenues and consumer price stability in the legitimate tobacco industry. However, DNP brands being retailed at not just lower than the Government mandated minimum price of Rs 62.75/pack, but even lower than the minimum excise and sales tax payable on a pack of 20 cigarettes, i.e., Rs 42.12/pack, are a serious detriment to sustainability and viability of legitimate tobacco sector.

The incidence of counterfeit has been curbed largely on the back of PTC's own technology enabled initiative for on-spot detection of counterfeit products. Consistent enforcement efforts by the Government with dedicated human and financial resources is key to ensure a level playing field in the legitimate tobacco sector which will positively impact revenue collection for the Government.

Key financial indicators of the Company for the period ended March 31, 2022 are as below:

Rs. (million)
Jan - Mar, 2022	Jan - Mar, 2021
Gross Turnover	52,832	49,029
FED & Sales Tax	33,139	30,930
Net Turnover	19,693	18,099
Cost of Sales	10,490	9,359
Gross Profit	9,203	8,740
Operating Profit	6,562	6,151
Profit Before Tax - PBT	6,709	6,262
Profit After Tax - PAT	4,886	4,495
Earnings Per Share - EPS (Rs)	19.12	17.59

Domestic sales increased in Q1'22 vs Q1'21 primarily on account of a stronger base of CbPMO. The Company exported Unmanufactured Tobacco and Finished Goods worth USD 6.4 million in Q1'22 which is 7% higher than the USD 6.1 million export SPLY. PTC continues to explore new opportunities to increase export sales. PTC stays committed to building on its new category of tobacco-free nicotine products (VELO) that has been growing year-on-year.

The cost of sales increase was attributable primarily to the higher volumes sold in Q1'22 versus SPLY. The cost base is expected to remain under pressure in 2022 due to an uncertain economic environment driven by high inflation & interest rates. Hence, PTC remains committed to cost saving and productivity initiatives.

The Company has always maintained a focus on risk management and is committed to undertake all necessary steps to maintain business continuity without compromising health and safety of our staff and our business partners. The Company will continue to drive shareholder value by strengthening its business operations and delivering the best-in-class products to its consumers.

���������������Syed�Ali�Akbar�

��������������������William�Pegel

MD & Chief Executive Officer

Chief Financial Officer & Director

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