China Tobacco International (HK) Reports Strong Financial Performance

Key points of focus:

1. In 2024, the revenue was 13.074 billion Hong Kong Dollars (HKD), a year-on-year increase of 10.5%, with a net profit attributable to shareholders of 854 million Hong Kong dollars, a year-on-year increase of 42.6%.

2. Profit increased by 26.6% to HK$1.378 billion, driven by cost optimization and business expansion.

3. Exports of new tobacco products reached 760 million units, a year-on-year increase of 12.5%.

On March 6th, China Tobacco International (HK) Limited (6055.HK) released its annual financial report for the year ending December 31, 2024. 

The data shows that the company achieved a revenue of 13.074 billion Hong Kong dollars, a year-on-year increase of 10.5%; and a net profit attributable to shareholders of 854 million Hong Kong dollars, a year-on-year increase of 42.6%.

During the reporting period, the company's gross profit increased by 26.6% to HK$1.378 billion, benefiting from cost optimization and business expansion. 

The board of directors has proposed a final dividend of HKD 0.31 per share, in addition to the interim dividend of HKD 0.15 per share, for a total annual dividend of HKD 0.46 per share, representing a year-on-year growth of 43.8%.

Tobacco product imports and exports: The company imported 112,000 tons of tobacco leaves, a decrease of 4.5% compared to the previous year; however, due to optimized supply chain and product structure, revenue still increased by 2.2% year-on-year. 

On the export side, driven by increasing international market demand, the company exported 83,500 tons of tobacco leaves, a significant increase of 18.4% compared to the previous year.

Cigarettes: The Group's cigarette export volume reached 3.3 billion units, an increase of 535 million units compared to the previous year, representing a growth rate of 19.1%.

operating income was 1.574 billion Hong Kong dollars, an increase of 365 million Hong Kong dollars compared to the previous year, representing a growth rate of 30.2%; gross profit was 277 million Hong Kong dollars, an increase of 113 million Hong Kong dollars compared to the previous year, representing a growth rate of 69.1%.

New Generation Tobacco: The export of new tobacco products reached 760 million units, an increase of 135 million Hong Kong dollars, or 520 million Hong Kong dollars, representing a growth rate of 8,460 million units or 12.5% compared to the previous year. 

Operating income increased by 4.0%. Gross profit was 70 million Hong Kong dollars, an increase of 130 million Hong Kong dollars, representing a growth rate of 22.9%. 

The performance growth was driven by two factors: a focus on key brands, expanding market channels, and securing more orders from major markets and customers; and ongoing business model optimization, product diversification, pricing adjustments, and profitability improvements.

Brazilian Business: Brazil's tobacco exports reached 31,627 tons with a revenue growth of 37.0%.

China Tobacco Hong Kong stated that it will continue to promote the development of new tobacco innovations in order to increase the international recognition of its brand. 

The company will deepen cooperation between production and sales, promote technological innovation in tobacco and upgrade product iterations to enhance competitiveness. It will also optimize business expansion models and product pricing strategies in key markets, with a focus on enhancing the international influence of the brand.

As of the deadline of the 2Firsts publication, China Tobacco International (HK) stock price was reported at 24.85 HK$, dropping 9.14% after the market opened today and reaching a total market value of 171.88 billion Hong Kong dollars.