Khyber Tobacco : Transmission of Quarterly Report for the Period Ended 31-03-2024

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. Pir Waris Shah	Non-Executive Director
Barrister Shahzad Javed Panni	Independent Director
Mr. Zia Ur Rehman	Non-Executive Director
Mrs. Sonia Farooq	Independent Director
Mr. Khalil Ur Rehman	Non-Executive Director
Audit Committee
Barrister Shahzad Javed Panni	Chairman
Mr. Khalil Ur Rehman	Member
Mr. Rahat Ullah	Member
Mr. Zia Ur Rehman	Secretary
Human Resource Committee
Mrs. Sonia Farooq	Chairman
Mr. Pir Waris Shah	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
MCB Bank Limited	Share Registrar Services Limited
Askari Bank Limited	CDC House, 99-B, Block B
Habib Metropolitan Bank Limited	S.M.C.H.S., Main Shahreh e Faisal
Habib Bank Limited	Karachi
Bank of Punjab
Samba Bank Limited
External Auditors	Registered Office
Yousaf Adil	Khyber Tobacco Company Limited
Chartered Accountants	Nowshera Road, Mardan
	Telephone: [phone], 844639
Internal Auditors	Fax: [phone]
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, 2024.

FINANCIAL RESULTS

	Jul-March	Jul-March
Financial Highlights	2024	2023
	Rs. in Millions
TURNOVER -Gross	5,737.71	8,349.48
Turnover-net	2,852.46	5,779.97
Cost of sales	2,367.72	3,703.68
Gross profit	484.74	2,076.29
Profit (Loss) before taxation	(179.64)	1,537.19
Profit (Loss) for the period	(257.11)	1,353.16

In compliance with the local regulation, Khyber Tobacco Company Limited have fully implemented Track & Trace system and have rolled out cigarette packs with affixed tax stamps in the market. In order to curtail illicit trade and provide a level playing field, across the board implementation of Track & Trace is the need of the hour.

The above results indicate an overall revenue decrease of 31% as compared to the corresponding period of the last year. The gross profit has decreased by 77% as compared to last year. Loss before taxation has increased up to 112% as compared to last year, the decrease in overall turnover is mainly due to decrease in sale of both local sales and export of tobacco and challenging macro-environment due to pressure on foreign currency reserves and high inflation.

The price hike during the period under consideration as compared to the corresponding period has adversely affected the EPS being Rs. (37.14) as compared to Profit per share of Rs. 234.56 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. Decrease in exports due to increase in price of law raw tobacco, however, the company is trying to establish new customers across the globe. 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 but the increase in price of raw material and availability of cheap brands in the local market have caused low sales.

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.

Khyber Tobacco Company Limited	3

DIRECTORS' REVIEW

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.

ACKNOWLEDGEMENT

The Board takes this opportunity to thank the Company's valued customers, bankers and other stakeholders for their corporation and support. The Board greatly appreciates hard work and dedication of all employees of the Company.

On behalf of the Board


Mrs. Samera Irfan	Rahat Ullah
Chief Executive Officer	Chairman
30 April, 2024.

4 Khyber Tobacco Company Limited

DIRECTORS' REVIEW IN URDU

Khyber Tobacco Company Limited	5

DIRECTORS' REVIEW IN URDU

6 Khyber Tobacco Company Limited

FINANCIAL STATEMENTS

Khyber Tobacco Company Limited	7

CONDENSED INTERIM BALANCE SHEET (UN-AUDITED)

AS AT MARCH 31, 2024

Note

EQUITY AND LIABILITIES

EQUITY

(Un-audited)	(Audited)
March 31,	June 30,
2024	2023
Rupees	Rupees

Share capital

Unappropriated profit

Revenue reserves

Revaluation surplus on property, plant and equipment

NON-CURRENT LIABILITIES

Employee benefits

Lease liabilty

Deferred tax liabilities-net

CURRENT LIABILITIES

Trade and other payables

Unclaimed dividend

Lease Liability-current

Loan From Director

TOTAL EQUITY AND LIABILITIES

CONTINGENCIES AND COMMITMENTS

6

The annexed notes 1 to 9 form an integral part of these financial information

69,226,040

3,145,947,636

3,312,465

311,424,353

3,529,910,494

107,238,930

113,801,207

149,719,143

370,759,281

8,110,935,362

16,714,325

58,313,957

901,035,638

9,086,999,282

12,987,669,056

69,226,040

3,352,438,743

3,312,465

368,963,006

3,793,940,254

87,810,788

-

105,942,415

193,753,203

3,614,916,768

16,171,291

-

101,035,638

3,732,123,697

7,719,817,154

8 Khyber Tobacco Company Limited