China Tobacco International H1 Revenue Falls 26.9%, Profit Down 11.2%, Shares Up 6.24%
China Tobacco International reported first-half 2026 revenue of HK$7.54 billion, down 26.9% year on year, and net profit of HK$627 million, down 11.2%. Shares rose 6.24% on August 24, lifting market capitalization to HK$17.4 billion. The company declared an interim dividend of HK$0.19 per share, unchanged from 2025. Leaf tobacco imports fell sharply, while leaf tobacco exports and Brazil operations grew strongly, offsetting declines in cigarette and new tobacco exports.
China Tobacco International released its unaudited consolidated interim results for the six months ended June 30, 2026, on August 21. Revenue for the first half of 2026 was HK$7.54 billion, down 26.9% from HK$10.316 billion in the same period of 2025. Profit attributable to equity holders of the company was HK$627 million, a decrease of 11.2% year on year.
Business segments showed clear divergence. The leaf tobacco import business was affected by international trade relations and shipment scheduling fluctuations. Import volume in the first half was 69,429 tonnes, down 29.1% year on year, generating revenue of HK$4.999 billion, down 40.5%, with gross profit of HK$544 million, down 20.8%.
Leaf tobacco export volume rose 10.6% to 42,563 tonnes, with revenue of HK$1.765 billion, up 52.7%, and gross profit of HK$101 million, up 60.6%, driven by new supply channel development and expansion of non-exclusive operating regions. Cigarette exports were affected by adjustments in domestic duty-free market business processes and shipment delays. First-half exports were 656 million sticks, down 35.6%, with revenue of HK$412 million, down 25.3%, and gross profit of HK$149 million, up 4.9%. New tobacco product exports were dragged by geopolitical conflicts and stricter overseas regulation, with revenue of HK$9.809 million, down 32.8%.
Brazil operations grew significantly, with external leaf tobacco exports of 12,673 tonnes, up 59.9%, revenue of HK$354 million, up 81.3%, and gross profit of HK$61.6 million, up 15.0%. On the financial side, net other income was HK$96.383 million, up 33.9%, mainly from exchange gains due to the appreciation of the Brazilian real. Administrative and other operating expenses were HK$82.937 million, up 4.4%. Financing costs were HK$80.134 million, down 3.3%, due to lower bank borrowings and interest rates at the Brazilian subsidiary.
As of June 30, 2026, cash and cash equivalents plus short-term bank deposits totaled HK$3.819 billion. The capital gearing ratio fell to 0.51 from 0.73 at the end of 2025, while the current ratio improved to 1.97, with net current assets of HK$3.806 billion. The board declared an interim dividend of HK$0.19 per share, unchanged from the same period in 2025, with a total dividend of HK$131 million. On the first trading day after the results announcement, August 24, the share price rose 6.24%, bringing total market capitalization to HK$17.4 billion.