China Tobacco Hong Kong releases 2024 interim forecast, profit expected to grow by more than 30%

China Tobacco Hong Kong releases 2024 interim forecast, profit expected to grow by more than 30%

China Tobacco International (Hong Kong) Co., Ltd. expects revenue and profit to grow by no less than 10% and 30% respectively in the first half of 2024, mainly due to the recovery of consumption in duty-free shops, optimization of tobacco product portfolio, increase in self-operated business, and improvement in import and export business of tobacco leaf products.

On June 3, China Tobacco International (Hong Kong) Co., Ltd. (06055.HK) released a positive profit forecast for the interim period of 2024. According to the announcement, the company expects revenue to increase by no less than 10% and profit attributable to owners of the company to increase by no less than 30% in the six months ending June 30, 2024 compared with the same period in 2023.

Its revenue and profit attributable to owners are expected to increase compared with the same period in 2023, mainly due to the following reasons:

As a result of actively seizing the opportunity of the continued recovery of duty-free shop consumption traffic after the epidemic, further optimizing the tobacco product portfolio and increasing the proportion of self-operated business, the company's tobacco export business revenue and gross profit have increased significantly;

Affected by the seasonal fluctuations of tobacco leaves, the import volume of tobacco leaf products during this period increased compared with the same period last year, and the overall sales unit price during this period increased compared with the same period last year, which also increased the company's tobacco leaf product import business revenue and gross profit;

The company actively organized marketable sources and optimized pricing strategies, which increased the revenue and gross profit of tobacco leaf product export business.

It is reported that the company's financial data details for this period will be disclosed in the interim results announcement, which is expected to be released on or before August 31, 2024.