China Tobacco International (HK) Company (6055) H1 2025 earnings summary

Executive summary

• Revenue rose 18.5% year-over-year to HK$10,316.2 million for the six months ended 30 June 2025, with profit attributable to equity shareholders up 9.8% to HK$706.4 million, and EPS at HK$1.02, up from HK$0.93.

• Growth was driven by strong performance in the Tobacco Leaf Products Import and Export Businesses and Cigarettes Export Business, despite a decline in gross profit margin.

• The Group maintained a focus on high-quality business development, risk management, and ESG initiatives, with improved ESG ratings.

• Gross profit declined 1.8% year-over-year to HK$946.5 million, mainly due to higher procurement costs in the import and Brazil operations.

• Interim dividend declared at HK$0.19 per share, a 26.7% increase year-over-year.

Financial highlights

• Revenue: HK$10,316.2 million (+18.5% YoY); Gross profit: HK$946.5 million (-1.8% YoY).

• Profit attributable to equity shareholders: HK$706.4 million (+9.8% YoY).

• Cash and cash equivalents and short-term bank deposits: HK$3,975.1 million (+41.5% YoY).

• Net assets: HK$3,700.8 million (+17.7% YoY).

• Finance costs decreased 28.2% to HK$82.9 million.

Outlook and guidance

• Focus on high-quality business development, supply chain resilience, and international expansion.

• Plans to accelerate digital transformation, optimize management, and enhance ESG performance.

• Continued emphasis on organic and inorganic growth, product innovation, and market expansion.

• Plans to enhance supply chain resilience, expand market coverage, and accelerate innovation in new tobacco products.

• Continued emphasis on ESG, digital transformation, and employee development.