The company was incorporated in the province of Sindh on February 10, 1969 as a public limited company and its shares are quoted on the Karachi and Lahore Stock Exchanges.
Lakson Tobacco Company Ltd is the flag ship of Lakson Group of Companies which has diversified interest in real estate, paper and board manufacturing, insurance etc.
The principal activity of the company is the manufacture and sale of cigarettes and tobacco. Its prominent brands are K-2, Diplomat, Red & White and Morven Gold.
In 1984 it had foreign equity participation with Rothmans International Plc of UK which enabled the company to market cigarettes of Rothmans brand.
The company's commercial production, through its first cigarettes manufacturing factory at Kotri, commenced in 1971.
In 1997 it because the first Pakistani Tobacco Company to have ISO 9002 certified Leaf Division as well as Central Analytical Services Laboratory. In 2003 its Leaf Division was up-graded to ISO 9001 (2000).
The Leaf Division also achieved ISO 14001 Certification for Environmental Management System. During the nine months ended March 31, 2004 of the financial year 2003-04, (3Q 2003-04), the company's Net Sales at Rs 12.671 billion reflected 11.1% rise over net sales of Rs 11.405 billion in the corresponding nine months of last year.
Gross Profit Margin marginally dropped to 18.27% from 18.77% in the same period last year.
However growth in sale also drove up the Gross Profit at higher point. Gross Profit at Rs 2.315 billion rose by 8.13% over Rs 2.141 billion posted in the preceding period.
Financial charges have recorded a 48% reduction over the same period last year due to minimum utilisation of bank borrowings. At the end of the period under review there was no long term debt. Its long term debt to equity ratio was excellent in the previous corresponding period. For the period under review it was 0:100.
While the solvency ratio was excellent its liquidity ratio depicted quite an easy position. Hence financial health remained robust. Selling and distribution expenses were lower by approximately Rs 350 million.
This was mainly due to non utilisation of electronic media in the third quarter in line with the government policies on tobacco advertising. The company posted Rs 910 million during the nine months ended March 31, 2004.
======================================================
Performance Statistics (Million Rupees)
======================================================
Balance Sheet -As At-
------------------------------------------------------
March 31 June 30
2004 2003
======================================================
Share Capital-Paid-up: 513.17 427.64
Reserves & Profit: 2,212.52 1,490.54
Shareholders Equity: 2,725.69 1,918.18
Surplus on Revaluation
of Fixed Assets: 13.60 14.00
L.T Debts: - 92.13
Deferred Taxation: 108.14 93.50
Current Liabilities: 2,120.29 1,797.03
Tangible Fixed Assets: 1,491.25 1,050.99
L.T Loans: 2.10 2.60
L.T Deposits & Prepayments: 10.56 38.50
Current Assets: 3,463.81 2,822.75
Total Assets: 4,967.72 3,914.84
------------------------------------------------------
Profit & Loss A/c For the
Nine Months Ended March 31, 2003 2002
------------------------------------------------------
Net Sales: 12,671.37 11,405.33
Gross Profit: 2,315.81 2,141.35
Operating Profit: 1,486.91 950.53
Other Income: 17.64 23.84
Financial (Charges): (17.11) (33.02)
Profit Before Taxation: 1,405.72 876.63
Profit After Taxation: 909.88 593.09
Interim (Dividend)
@ Rs 2/- Per Share: (102.63) 85.53
Earnings Per Share (Rs): 17.73 13.87
Share Price (Rs) on 24.05.2004: 168.00 -
------------------------------------------------------
Financial Ratios
------------------------------------------------------
Price/Earning Ratio: 9.47 -
Book Value Per Share (Rs): 53.11 44.85
Debt/Equity Ratio: 0:100 4:96
Current Ratio: 1.63 1.57
Gross Profit Margin (%): 18.27 18.77
Net Profit Margin (%): 7.18 5.20
======================================================