Smoking is definitely bad for health but way too good for business. Pakistan Tobacco Company, which is interestingly the very first multinational to begin its operations in Pakistan immediately after the independence, made Rs 37 Crore in first three months of 2012.
Pakistan Tobacco, a highly vertically integrated company which is involved in cigarette production, from crop to consumer, successfully sold Rs 1,770 Crore of Cigarettes in just three months of 2012. Revenues increase by almost 9% in as compared to Rs 1,645 Crore in same quarter of 2011.
Company paid Rs 911 Crore and Rs 252 Crore in Excise Duties and sales tax which left only Rs 606 Crore in net revenues for the company. On one hand, where Pakistan Tobacco’s investors are left only with Rs 37 Crore, Govt made Rs 1,182 Crore in form of duties and different taxes.
The highest increase occur in selling and distribution cost which reaches at Rs 89 Crore in first quarter as compared with Rs 50 Crore in same quarter last year. It would be interesting to note that Cigarette companies are not allowed to advertise in print and, or, electronic media.
Company owned major famous brands of cigarettes in Pakistan including Dunhill, Benson & Hedges and John Player Gold Leaf, the largest selling brand of Pakistan Tobacco.
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