Pakistan Tobacco Company Limited (PTC) has kicked off 2026 with a strong financial performance, reporting a significant increase in profitability for the first quarter ended March 31, 2026. The company benefited from higher sales volumes, improved product mix, and disciplined cost management despite operating in a challenging business environment.
According to the company’s first-quarter financial statements, profit after tax rose 49% year-on-year to Rs. 9.34 billion, compared with Rs. 6.27 billion in the corresponding period last year. Earnings per share (EPS) also climbed to Rs. 36.57, up from Rs. 24.53 a year earlier.
PTC’s gross turnover increased 28% to Rs. 102.27 billion, while net turnover grew 24% to Rs. 38.10 billion. The company managed to keep its cost of sales largely unchanged despite inflationary pressures, allowing gross profit to jump 54% to Rs. 21.39 billion. Operating profit also recorded healthy growth, reaching Rs. 16.04 billion, compared with Rs. 10.58 billion in the first quarter of 2025.
The company attributed the strong performance to a 37% increase in domestic cigarette volumes, supported by effective commercial execution, portfolio optimization, and continued investment in its flagship brands. PTC also reported encouraging momentum in its reduced-risk product portfolio, with VELO™ sales volumes rising 35% year-on-year, reflecting increasing consumer acceptance of modern oral nicotine products.
Management noted that the tobacco industry continues to face significant challenges, particularly the widespread presence of illicit cigarette trade, which is estimated to account for nearly 50% of total cigarette consumption in Pakistan. However, the company said recent enforcement efforts have helped slow the shift toward illegal products and supported a gradual recovery in tax-paid cigarette volumes.
Looking ahead, PTC expects sales growth to normalize to high single-digit levels as market conditions stabilize. The company said it will continue focusing on operational efficiency, innovation, sustainable growth, and expanding its multi-category product portfolio while navigating economic uncertainty and industry-specific challenges.
In line with its commitment to rewarding shareholders, the Board of Directors has announced a second interim cash dividend of Rs. 35 per share, bringing the total interim dividend declared for 2026 to Rs. 70 per share.
