LAKSON TOBACCO COMPANY LIMITED Nature and Status of Business Lakson Tobacco Company was incorporated in Pakistan on February 10, 1969 as a public limited company and its shares are quoted on the Karachi and Lahore stock exchanges. The principal activity of the company is the manufacture and sale of cigarettes and tobacco.Operating Results For 1998-99Lakson Tobacco Company has maintained a growth momentum, both in turnover and profits. Sales revenues and profits increased by Rs. 1,878 Million and Rs. 30 Million respectively, as compared to last year. During the year 98-99 the company's contribution to the national exchequer in the shape of excise duties and sales tax rose to Rs. 8.669 Billion as compared to Rs. 7.657 Billion in the previous year. The component of excise duties and sales tax paid during the year was equivalent to 62.20% of domestic sales turnover for cigarettes.Leaf TobaccoThe 1998 tobacco crop was adequate to meet industry's requirement and that of the company. The Company was able to procure the required to procure the required quantity at competitive prices.Future OutlookLakson Tobacco Company will seek to consolidate its position in the face of challenges and current difficult economic situation and will strive to further improve its quality, volume and profitability. Effective cost control measures will be continued, with increasing emphasis and expansion of distribution coverage will receive continued focus in the ensuing year.Performance of the company in 1998-99During the year 1998-99, after Tax profits of the company rose to Rs. 180 Million as compared to last year profit of Rs. 150 Million. This shows a healthy increase of 20%.Smuggling ThreatThe growing availability of smuggled and counterfeited brands across many product categories, including cigarettes, negatively impacts both the operations of legitimate manufacturers of these products and the amount of duties and taxes collected by the government. This in...
