Philip Morris – PMPKL posts 26laptop quantity decline YTD 2020
ISLAMA(BA)D PR – Philip Morris (Pakistan) Restricted has dismissed claims being made in previous few days by sure organisations about its monetary efficiency. Introduced not too long ago, throughout the 9 months ended September 30, 2020, PMPKL web turnover for the 9 months ended September 30, 2020 with the identical interval in 2019, had a marginal enhance in step with inflation whereas the corporate witnessed a quantity decline of 26% (versus similar interval in 2019), shared Muhammad Zeeshan, PMPKL Chief Monetary Officer in an unique dialog.
“We have previously also highlighted how rapid increase of illicit trade and its accelerating market share continues to threaten the tax-compliant sector. PMPKL closed its manufacturing facility in 2019. This measure, albeit tough, was taken to ensure cost optimisation due to declining volumes. The one-off impairment and employee separation cost expenses related to factory closure, which featured heavily in our 2019 accounts are no longer appearing in our 2020 accounts. The significant decrease in other expenses by PKR 2,463 million is the key driver behind the overall increase in the Operating Profit before tax from last year.”
He stated, “We understand that some civil society organisations are taking our financials out of context to drive their own vested interests and agendas.”
Stressing upon the necessity for a long run view versus remoted information, Zeeshan added, “Trends projections are more accurate when you take a longer term view instead of being selective, particularly when there are many externalities at play. This is especially true in a year like 2020 where the whole world has seen disruptions of an unprecedented nature.”
“If we take a longer term projection, our volume has more than halved in the past 10 years. Our internal data as well as independent research indicates that most of this volume was gained by non-tax paying cigarette manufacturers and traders.”
“We have undertaken various measures and initiatives to manage our performance and remain operational. We closed one of our factories last year to ensure sustainability and viability of the business – it was a very tough decision for us but we did it. We are functioning yes and meeting our financial obligations, but to say that we are “enormously” or “massively” worthwhile is grossly deceptive as would any coverage determination made on again of such claims. The authentic enterprise is at peril because of the accelerated development of illicit within the business,” he concluded.