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Volume down at JT (slightly) and JTI

| July 30, 2013

Japan Tobacco Inc.’s volume cigarette sales during the three months to the end of June, at 29.3 billion, were down by 0.2 percent on those of the three months to the end of June 2012.

Comparing the same periods, industry volume was said to have declined by 2.0 percent; so JT’s market share increased from 59.6 percent to 60.5 percent.

The share growth was driven by sales of Mevius (the brand known as Mild Seven up until February), which was the subject of sales promotions and new version launches that included Mevius Premium Menthol Option with a capsule filter.

Core revenue for the domestic business during the three months to the end of June, at ¥165.2 billion, was down by 0.1 percent on that of the three months to the end of June 2012, while adjusted EBITDA was down by 1.1 percent to ¥75.8 billion.

JT’s consolidated results for the first quarter included January–March figures for Japan Tobacco International, which saw its shipments during January–March 2013, at 92.6 billion, fall by 6.4 percent from those of January–March 2012, 98.9 billion.

Comparing the same periods, global flagship brand shipments fell by 4.5 percent to 58.4 billion.

Although volumes were down, JTI reported that its year-on-year market share continued to grow “in almost all key markets, including France, Italy, Spain, Taiwan, Turkey and the U.K.”

Core revenue for the international business during the three months to the end of March, at ¥252.3 billion, was up by 16.4 percent on that of the three months to the end of March 2013, while adjusted EBITDA was up by 23.8 percent to ¥99.0 billion.

JT’s consolidated first-quarter revenue for all of its businesses, at ¥547.9 billion, was up by 7.0 percent on that of the first quarter of 2012. Adjusted EBITDA, at ¥177.2 billion, was up by 13.6 percent and operating profit was up 13.9 percent to ¥146.5 billion.

“We have made a solid start to the new fiscal year,” said JT President and CEO Mitsuomi Koizumi. “Internationally, a strong price/mix drove continued profit growth despite unfavorable volume due to industry contraction. In Japan, Mevius continued to drive steady market share growth, demonstrating that the rebranding of Mild Seven to Mevius has been completed successfully.

“Looking ahead, despite a challenging business environment, we are confident that we can achieve the Business Plan 2013 targets, pursuing quality top-line growth.”

Meanwhile, JTI reported separately that its cigarette shipments during the three months to the end of June, at 109.0 billion, were down by 3.9 percent on those of the three months to the end of June 2012, 113.5 billion.

At the same time, global flagship brand shipments were down by 0.3 percent to 69.5 billion.

Core revenue was up by 3.8 percent to US$3,112 million.

Category: Breaking News

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