JT’s volumes down

Japan Tobacco Inc. reported today that its domestic cigarette sales volume during the year to the end of December, at 109.2 billion, was down by 2.8 percent on that of the year to the end of December 2014, 112.4 billion.

JT said that its volume had been affected mainly by a decline in overall industry volumes.

Core revenue for the domestic tobacco business fell by 1.2 per cent to ¥642.2 billion but adjusted operating profit was increased by 6.4 percent to ¥254.1 billion.

Meanwhile, Japan Tobacco International’s total tobacco (including cigarettes, fine-cut, cigars, pipe tobacco and snus, but excluding water-pipe tobacco, emerging products and contract manufactured goods) shipment volume during the year to the end of December, at 393.9 billion, was down by 1.0 percent on that of the year to the end of December 2014, 398.0 billion.

But JTI’s Global flagship brand shipment volume was increased by 4.3 percent from 262.2 billion to 273.6 billion.

JT reported that JTI’s total shipment volume decline was due to industry contraction in Russia as well as a volatile operating environment in the Middle East, partly offset by positive volume performances in the Benelux countries, Czech Republic, France, Germany, Iran, Italy and Turkey.

JTI’s core revenue fell by 0.5 percent to ¥1,252.5 billion, while adjusted operating profit fell by 11.8 percent to ¥394.4 billion.

“Our international tobacco business has remained the profit growth engine of the JT Group,” said Mitsuomi Koizumi, president and CEO of JT, in presenting the company’s consolidated results.

“We delivered another year of double-digit profit growth in US Dollars at constant currency, while increasing investments for long-term sustainable growth.

“Domestically, our market share has remained stable, underpinned by marketing and sales initiatives focusing on Mevius as well as the integration of the Caster and Cabin brands with Winston.

“Even though we face a highly volatile operating environment, our priorities remain the same. We will continue to actively invest in our business with the aim of accelerating future growth.”