Japan Tobacco increases volume sales at home and internationally
Japan Tobacco Inc’s domestic cigarette sales during the nine months to the end of December, at 89.4 billion, were increased by 10.5 per cent on those of the nine months to the end of December 2011.
The 2011 figure was negatively impacted by the manufacturing and distribution challenges JT faced following the earthquake and tsunami in March of that year.
JT’s market share was up from 54.9 per cent during April-December 2011 to 59.6 per cent during April-December 2012, and reached 60.1 per cent in December 2012.
Core revenue for the domestic tobacco business increased by 10.2 per cent to ¥502.8 billion and adjusted EBITDA was up by 13.3 per cent to ¥226.9 billion.
JT’s consolidated results included first nine-month figures for Japan Tobacco International, which saw its shipments during the period January 1, 2012 to September 30, 2012, at 327.9 billion, increased by 2.6 per cent on those of the equivalent period of 2011.
Excluding the effects of acquisitions (Haggar Cigarette & Tobacco Factory Ltd and GrysonNV), shipments grew by 1.2 per cent to 323.4 billion.
Global flagship brand shipments increased by 5.1 per cent to 202.5 billion.
JTI’s core revenue increased by 3.0 per cent to ¥702.9 billion and its adjusted EBITDA was up by 4.2 per cent to ¥266.0 billion.
JT’s total (including also its pharmaceutical, beverage and food businesses) consolidated revenue grew by 4.0 per cent to ¥1,608.4 billion and its adjusted EBITDA increased by 8.5 per cent to ¥494.5 billion. Operating profit was up by 13.2 per cent to ¥411.7 billion.
“Our tobacco businesses performed strongly,” said Mitsuomi Koizumi, president and CEO. “Internationally, we have continued to deliver a robust performance amid a challenging environment, demonstrating the soundness of our strategic focus on top line growth and broadening the earnings base. In Japan, our market share has recovered steadily, driven by efforts to strengthen brand equity.
“The transition to Mevius from Mild Seven has started smoothly. This is a pivotal step to realizing our growth strategy with the long-term aim of Mevius becoming the number one global premium brand.
“Looking ahead, we will continue to pursue quality top line growth by prioritizing business investment for sustainable medium to long-term profit growth.”
Meanwhile, JTI reported separately that its cigarette shipments during the year to the end of December, at 436.5 billion, were 2.5 per cent up on those of January-December 2011.
At the same time, global flagship brand shipments were increased by 4.8 per cent to 268.8 billion.
Core revenue was up by 5.4 per cent to US$11,817 million and core revenue per 1,000 cigarettes was increased by 2.7 per cent to US$27.3. Adjusted EBITDA grew by 9.1 per cent to US$4,302 million.