Transmission of Quarterly Account for the Period ended 31 12 2024

Director's Review

I am pleased to present the Half-Yearly Report of Khyber Tobacco Company Limited for the period ending on December 31, 2024. The first half of the financial year has been marked by significant achievements, robust financial performance, and strategic progress, despite the challenging global economic environment.

Pakistan's economy, although on a recovery path, continued to face challenges during the period under review. Despite significant easing in headline inflation and a reduction in current account deficit, the economic environment remains tough, with businesses grappling with high input costs and weak consumer demand. Foreign and domestic debt servicing costs remain a key burden in the short to medium term. Looking ahead, while fiscal consolidation efforts and external account improvements offer hope, Pakistan's economy continues to be restrained with real GDP growth estimated at 3.2 percent for FY 2024/25 amid ongoing domestic vulnerabilities and structural challenges.

The Six months under review were marked by very challenging macroeconomic conditions that impacted both consumers and businesses. As the economy moves forward, the ongoing reforms and efforts to stabilize the

macroeconomic environment are expected to unlock new avenues for growth, enabling businesses to thrive and contribute to the nation's upward trajectory. The Company continued to focus on enhancing productivity

across its value chain by ensuring effective cost management, lean operations, and modernization of machinery infrastructure.

Export sales is evident from an increase in net sales of Rs. 4,884.13 Million during the period under review as compared to net sales of Rs. 956.80 Million in the corresponding period last year. Management is continuously endeavoring to expand its local market by adding new customers to its existing customer base.

Loss before taxation for the period under review stood at Rs. (154.69) million as compared to the corresponding period last year Loss before tax of Rs. (1,064.82). Loss after tax for the period under review stood at Rs. (162.57) million as compared to the corresponding period last year Loss after tax of Rs. (1,061.46).

Loss per share for the period under review stood at Rs. (23.48) as compared to the corresponding period last year's Loss per share of Rs. Rs. (153.33).

FUTURE OUTLOOK

The Company remains cautiously optimistic and is well-positioned to navigate challenges related to technology, operational efficiencies, and low sales and production:

• Continued focus on cost optimization and operational efficiency.
• Strategic investments in technology and infrastructure to drive productivity.
• Exploring new markets and opportunities for growth both nationally and internationally.
• Strengthening relationships with customers, suppliers, and other stakeholders.

Acknowledgments.

On behalf of the Board, I would like to express my gratitude to our shareholders, customers, business partners, and employees for their unwavering support and dedication. It is their collective efforts that have enabled the Company to deliver a resilient performance in these challenging times. We remain committed to creating long-term value for all our stakeholders and look forward to building on this momentum in the coming months.

The composition of the Board is as follows:

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202431

   

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    

3.220252024

         

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4,881.13956.80



 154.691,064.82 1,061.46 162.57 23.48153.33 

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  

   

    

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2025 28

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