China Tobacco International (HK) Company (6055) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 12% year-on-year to HK$8,704.0 million, with gross profit up 29% to HK$964.2 million and net profit attributable to equity shareholders up 41% to HK$643.3 million.

• Growth was driven by strong performance in the Tobacco Leaf Products Import, Export, and Cigarettes Export businesses, as well as improved operational efficiency and supply chain management.

• The Board declared an interim dividend of HK$0.15 per share for the period.

Financial highlights

• Revenue increased 12% year-on-year to HK$8,704.0 million; gross profit margin improved to 11.1%.

• Profit before taxation rose 35% to HK$842.3 million; net profit up 33% to HK$679.7 million.

• Earnings per share increased to HK$0.93 from HK$0.66 year-on-year.

• Other income, net, surged 131% to HK$68.4 million, mainly due to higher interest income.

• Finance costs increased 60% to HK$115.5 million, reflecting higher borrowings and interest rates.

Outlook and guidance

• Focus on organic and inorganic growth, supply chain resilience, and international business expansion.

• Plans to enhance brand portfolio, expand cigar and duty-paid businesses, and accelerate new tobacco product innovation.

• Continued emphasis on ESG integration, ERP system upgrades, and risk management.