JT Ups Forecast After Strong Quarter

Japan Tobacco’s (JT) revenue decreased 2.5 percent to ¥1.59 trillion ($15.25 billion) in the third quarter of 2020. Adjusted operating profit at constant currency increased 6.3 percent to ¥479.8 billion. On a reported basis, adjusted operating profit decreased 2.2 percent to ¥441.5 billion. Operating profit decreased 11.4 percent to ¥390.2 billion, while profit attributable to owners of the parent company decreased 18.4 percent to ¥257.9 billion.

JT revised its revenue and adjusted operating profit at constant currency forecasts for fiscal year 2020 upward by ¥60 billion and ¥30 billion, respectively. The company also revised upward its adjusted operating profit on a reported basis forecast (by ¥26 billion), its operating profit forecast (¥42 billion) and its profit attributable to the owners of the parent company forecast (¥24 billion).

“The JT Group posted encouraging results in the year-to-date, driven by strong underlying fundamentals, despite a challenging operating environment, and our adjusted operating profit at constant currency grew due to the share and pricing gains in the international tobacco business,” said Masamichi Terabatake, president and CEO of the JT Group, in a statement.

“Our forecasts are revised upward following the strong year-to-date performance as well as efficient cost management while we continue to invest in high priority activities, and we have confidence in achieving the revised forecast.

“Looking ahead and taking into account the prevailing and highly uncertain environment, we will continue investments to offer products and services with agility, as we adapt to evolving ways of working and changing consumer needs.”