JT Revenue Down

Japan Tobacco reported revenue of ¥575.2 billion ($5.32 billion) in the third quarter of 2019, down 4.2 percent from the comparable 2018 quarter. Adjusted operating profit was ¥163.7 billion compared with ¥193.2 billion in last year’s period. Operating profit declined 26 percent to ¥129.3 billion. At constant exchange rates, adjusted operating profit was down 1.8 percent to ¥189.7 billion.

For the year to date, adjusted operating profit at constant exchange rates increased 3 percent to ¥526.2 billion, driven by growth in the international tobacco and processed food businesses, partially offset by the Japanese domestic tobacco and pharmaceutical businesses.

“On a reported basis, our third quarter results continued to decline due to currency headwinds and intense competition in the Japanese market,” said Masamichi Terabatake, president and CEO of the JT Group.

“At constant FX, consolidated adjusted operating profit growth in the year to date was driven by market share and pricing gains in the international tobacco business. In the Japanese domestic tobacco business, we are committed to reinforcing our portfolio in both RRP and conventional products as well as improving our marketing and sales activities with a sense of speed.

“In an increasingly evolving industry due to dynamic consumer needs, we must transform ourselves by embracing new ways of working and cultures. We are also implementing a number of initiatives focusing on our operational excellence to increase speed, agility and promote bolder actions. We believe that these initiatives will support our sustainable business growth.”