Plant Modernization
In line with its drive to invest in latest machinery and facilitate up-gradation in its technology footprint to meet the industry’s increased demand, the Company invested Rs 1.2 billion in tangible fixed assets in 2007. Moreover, various process optimization initiatives were undertaken at both the factories to further strengthen supply chain's competitive advantage.
Appropriation of Profits
The profit for the year, along with distributable profit at year end, has been appropriated as follows:
Dividend
On account of the excellent performance of the Company during 2007, the Board is pleased to propose a final dividend of Rs 3.90 (2006: Rs 4.40) per share in respect of the financial year ended December 31, 2007, over and above the three interim dividends of Rs 5.50 (2006: Rs 3.00) per share in total during the year.
Business Challenges and Future Outlook
2007 was, indeed, a challenging year for the company due to the exigent circumstances prevailing in the country. Despite these difficult circumstances and challenges, the Company continued to deliver and achieve its business objectives.
This year also saw a major global tobacco player entering Pakistan through acquisition of controlling share of Lakson Tobacco Company. As the focus of PTC shifts from local competition to a global player, the Company looks forward to a healthy and level playing field that will benefit the industry on the whole.
Illicit trade continues to be a key challenge and area of concern for the tax paying sector. For the time being, the Government initiatives seem to have contained the incidence of smuggling and counterfeiting. However, the local Duty Not Paid (DNP)/illicit elements remain the biggest threat and are proving to be a major hurdle in creation of a level playing field.
The outstanding performance of the Company for the year 2007 was not possible without the dedication, hard work, enterprising spirit, and enthusiasm of its employees. The Company is confident that it will continue to lead the tobacco industry responsibly and will maintain the growth momentum. PTC remains committed to increase sustainable growing shareholders’ value by ensuring continuous focus on its strategy pillars of driving ‘Growth’, enhancing ‘Productivity’ and acting ‘Responsibly’ all of which are delivered through our ‘Winning Organization’.
