China Tobacco Hong Kong 2024 interim report: total revenue increased by 12% year-on-year to HK$8.7 billion, and new tobacco revenue increased by 28% year-on-year

China Tobacco Hong Kong 2024 interim report: total revenue increased by 12% year-on-year to HK$8.7 billion, and new tobacco revenue increased by 28% year-on-year

On August 27, China Tobacco Hong Kong announced its 2024 interim results report. During the period, the company's revenue reached HK$8.704 billion, a year-on-year increase of 12%; the company's equity holders' attributable profit was HK$643 million, a year-on-year increase of 41%.

On August 27, China Tobacco Hong Kong (06055.HK) announced its 2024 interim results report. During the period, the company's revenue reached HK$8.704 billion, a year-on-year increase of 12%; the company's equity holders' attributable profit was HK$643 million, a year-on-year increase of 41%; gross profit was HK$964 million, a year-on-year increase of 29%.

The operating income of the export business of new tobacco products expanded, with revenue reaching HK$43.5 million, a year-on-year increase of 28%, and gross profit increasing by 57% year-on-year;

The cigarette export business grew rapidly, with operating income reaching HK$547.3 million, a year-on-year increase of 128%, and gross profit increasing by 223% year-on-year;

The import and export of tobacco leaf products grew steadily, with import business revenue increasing by 5% year-on-year, and export business operating income increasing by 23% year-on-year;

The operating income of the Brazilian business increased by 43% year-on-year, and the gross profit decreased by 8% year-on-year.

Source: China Tobacco Hong Kong

The report shows:

The performance growth of the company's new tobacco products is mainly due to the deep exploration of channel space in key markets, increased customer marketing efforts, and increased order demand in key markets; as well as continued enrichment of product portfolio, optimization of product pricing strategies, and increase in the proportion of self-operated business.

The cigarette export business has increased significantly. The company mentioned that this is because the rolled leaf export business continues to optimize its product mix, increases the launch of new products, and expands the scale of self-operated business, resulting in a substantial increase in the revenue and gross profit of the cigarette export business; as well as the duty-free market Customer traffic continued to recover, and product sales increased compared with the same period last year.

Affected by the seasonal fluctuations of tobacco leaves and the increase in the sales unit price of tobacco leaf products, China Tobacco Hong Kong's tobacco leaf import business increased slightly. The growth of tobacco leaf export business is beneficial to the demand of the international market and the optimization of pricing strategies.

Although the operating income of Brazil has increased significantly, the gross profit has declined compared with the same period last year. The company said that this is because the sales volume of finished cigarettes with higher sales unit price and lower gross profit has increased significantly, and the gross profit level is high. The sales volume of products with low unit price has decreased.

In addition, China Tobacco Hong Kong said that in the second half of this year, it will continue to enhance the international popularity of new tobacco products, deepen cooperation between production and marketing, and comprehensively promote new tobacco technology innovation and product upgrades.