The company was incorporated in the province of Sindh on February 10, 1969 as a public limited company and its shares are quoted on Karachi and Lahore Stock Exchanges. Its registered office is situated at Lakson Square Building No 2 Sarwar Shaheed Road Karachi. The principal activity of the company is the manufacture and sales of cigarettes and tobacco. Its 5 factories are located in three province of the country. Factory No 1 is in S.I.T.E. Kotri Dadu Sindh and Factory No 2 is in Korangi Industrial Area Karachi Sindh. In Punjab its two factories are located at Quadirabad Distt. Sahiwal and Mandra District Rawalpindi.
In NWFP its factory is located at Ismaila District Swabi. On 5th May 2005, the closing quotation of Lakson Tobacco share was recorded at Rs 230 per share which is 23 times of the par value. During the last one year, the market value of its share increased to Rs 326 from Rs 195.50 per share.
During January-March 2005, (third quarter) the company generated sales at Rs 5.052 billion as against Rs 4.547 billion in January-March 2004, the same period last year (SPLY). It shows increase in sales by 11.10%. The rise in sales revenue is attributed mainly to increase in volume sales and better brand mix. The company has completed the implementation process of the world class ERP System - SAP for its procedures at all locations. The company was expected to 90 on line on SAP by the end of April 2005.
The SAP implementation project was completed within the planned time frame. During the quarter under review the company posted gross profit at Rs 932.82 million (Q3 2004: Rs 822.10 million) and pretax profit at Rs 583.61 million (Q3 2004: 339.63 million) showing increase by 71.8% and 13.5% respectively over SPLY.
These are commendable performances. However the directors think that the performance of the company may not be sustainable in view of the apprehended increase in government legislation and its endorsement to the Framework Convention for Tobacco Control (FCTC).
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 June 30
2005 2004
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Share Capital-Paid-up: 513.17 513.17
Reserves & Profit: 3,139.33 2,580.46
Shareholders Equity: 3,652.50 3,093.63
Surplus on Revaluation of
Fixed Assets: 13.37 13.66
Non Current Liabilities: 165.89 157.50
Current Liabilities: 1,810.59 1,757.62
Tangible Fixed Assets: 2,098.81 1,537.44
L.T. Investment: - -
L.T. Loans: 1.61 2.20
L.T. Deposits & Prepayments: 8.82 8.63
Current Assets: 3,533.11 3,474.14
Total Assets: 5,642.35 5,022.41
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Profit & Loss A/c For The 3rd Quarter
Ended March 31 2005 2004
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Sales: 5,052.33 4,547.23
Gross Profit: 932.82 822.10
Operating Profit: 626.44 553.79
Other Income: 0.15 3.79
Financial (Charges): (2.22) (6.71)
Profit Before Taxation: 583.61 533.63
Profit After Taxation: 358.61 339.63
Earnings Per Share (Rs): 6.99 6.62
Share Price (Rs) on 5-5-2005: 230.00 -
Price/Earning Ratio: 32.90 -
Book Value of Share (Rs): 69.42 60.28
Debt/Equity Ratio: NA NA
Current Ratio: 1.95 1.98
Gross Profit Margin (%): 18.46 18.08
Net Profit Margin (%): 7.10 7.47
R.O.A. 6.36 6.76
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COMPANY INFORMATION: Chairman & Chief Executive: Iqbalali Lakhani; Advisor: Sultanali Lakhani; Director: Shahid Ahmed Khan; Company Secretary: Ramzan Ali Halani; Registered Office: Lakson Square Building No 2 Sarwar Shaheed Road Karachi-74200; Web Address: Not Reported; Factories: E/15, S.I.T.E. Kotri Distt. Dadu; Plot No 20 Sector No 17 Korangi Industrial Area Karachi; Quadirabad Distt. Sahiwal; Village Mandra, The Gujar Khan Distt. Rawalpindi; Ismaila Distt. Swabi.
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