China Tobacco Hong Kong 2023FY: 42% YoY Increase Driven by Cigarette Export and Operations in Brazil

Recently, China Tobacco Hong Kong (06055.HK) announced its financial results for the year ending in 2023. The company reported a revenue of 11.836 billion Hong Kong dollars, representing a 42% year-on-year increase. The gross profit was 1.088 billion Hong Kong dollars, up 35% from the previous year. The net profit attributable to shareholders reached 599 million Hong Kong dollars, showing a 60% year-on-year increase.

China Tobacco Hong Kong announced that the overall financial performance of the group has experienced growth, mainly driven by the increase in import and export businesses of tobacco products, as well as growth in operations in Brazil.

In this period, the export quantity of cigarettes was 2,803,867 thousand units, an increase of 2,420,560 thousand units year-on-year, with a growth rate of 631%. Operating income was 1,208.7 million Hong Kong dollars, an increase of 1,084.9 million Hong Kong dollars year-on-year, with a growth rate of 876%. Gross profit was 164.0 million Hong Kong dollars, an increase of 151.1 million Hong Kong dollars year-on-year, with a growth rate of 1,167%.

The export quantity of new tobacco products reached 677,310 thousand units, an increase of 174,920 thousand units compared to the previous year, marking a growth of 35%. The operating revenue was 130.0 million Hong Kong dollars, an increase of 19.8 million Hong Kong dollars compared to the previous year, showing a growth of 18%. The gross profit was 5.7 million Hong Kong dollars, an increase of 2.5 million Hong Kong dollars compared to the previous year, representing a growth of 80%.

China Tobacco Brazil's partially owned subsidiary, CBT, exported a total of 32,396 tons of tobacco products to regions outside of China, representing a year-on-year increase of 3,149 tons or 11%. The company's revenue reached 766.3 million Hong Kong dollars, with a year-on-year increase of 223.1 million Hong Kong dollars or 41%. The gross profit was 141.0 million Hong Kong dollars, up by 27.5 million Hong Kong dollars or 24% compared to the previous year.

China Tobacco Hong Kong stated that in 2024, it will continue to promote product research and development upgrades, enhance brand cultivation, expand into emerging markets, and increase the sales volume of new tobacco products.