Japan Tobacco Inc reported today that its domestic cigarette sales during the nine months to the end of December, at 89.7 billion, were increased by 0.4 per cent on those of the nine months to the end of December 2012.
Core revenue for the domestic tobacco business increased by 0.5 per cent to ¥505.1 billion but adjusted EBITDA was down by 1.1 per cent to ¥224.4 billion.
JT said sales volume and core revenue had been flat in the first nine months because its steady market share growth – 59.6 per cent for the full year 2012 to 60.8 per cent during April-December 2013 – had been offset by an overall industry volume decline.
Meanwhile, JT reported today, too, that it had applied to the Minister of Finance for approval to amend the list prices of most of its domestic tobacco products in conjunction with a planned consumption tax increase on April 1.
If approved, cigarette prices would be increased in most cases by ¥10 or by ¥20 per pack; so the price of a pack of Mevius, for instance, would rise from ¥410 to ¥430.
JT’s consolidated results included first nine-month figures for Japan Tobacco International, which saw its cigarette (and cigarette equivalent) shipments during the period January 1, 2013 to September 30, 2013, at 311.2 billion, down by 5.1 per cent on those of the equivalent period of 2012.
At the same time, global flagship brand shipments were down by 2.1 per cent to 198.2 billion.
Shipments were said to have been affected in part by industry contraction in Russia and Western Europe.
JTI’s core revenue increased by 25.0 per cent to ¥878.9 billion and its adjusted EBITDA was up by 31.9 per cent to ¥350.7 billion.
JT’s total (including also its pharmaceutical, beverage and food businesses) consolidated revenue grew by 10.7 per cent to ¥1,779.9 billion and its adjusted EBITDA increased by 16.1 per cent to ¥574.1 billion. Operating profit was up by 25.0 per cent to ¥514.4 billion.
“Internationally, we achieved robust growth driven by strong price/mix,” said Mitsuomi Koizumi, president and CEO. “Despite industry volume contraction, market share growth in most key markets confirmed solid business fundamentals.
“In Japan, robust performance of Mevius further expanded our overall market share.
“We will continue to strengthen the brand equity of our key brands such as Mevius, Seven Stars and Pianissimo, aiming to further increase our market share.
“The results over the last three quarters give me strong reason to believe that we will achieve our full year targets.”
Meanwhile, JTI reported separately that its cigarette (and cigarette equivalent) shipments during the year to the end of December, at 416.4 billion, were 4.6 per cent down on those of January-December 2012, 436.5 billion.
At the same time, global flagship brand shipments were down by 0.8 per cent to 266.6 billion.
Core revenue was up by 3.9 per cent to US$12,273 million and adjusted EBITDA was increased by 7.5 per cent to $4,623 million.
From 2015, JT and JTI should both be reporting their results based on a financial year that ends on December 31.
JT said today that its board of directors had resolved to change the company’s accounting period with the closing date moving from March 31 to December 31.
The change is subject to approval of an amendment to the company’s Articles of
Incorporation at the ordinary general meeting of shareholders due to be held in late June, and approval by the Minister of Finance, pursuant to the Japan Tobacco Inc. Act.
Category: Breaking News