Japan Tobacco today reported a 9.7% increase in annual adjusted operating profit from its tobacco business, thanks to selling more higher-priced packs of tobacco and its acquisition of U.S. tobacco company Vector Group.
Even as volumes declined by up to 2% as smoking rates fell in some markets, JT looked to grow revenue from alternative products to offset the losses. Notably, JT’s adjusted operating profit jumped 56.1% in the last quarter at constant currency, demonstrating adept market adaptation. The company, which makes Benson & Hedges and Winston cigarettes, said it expects tobacco-related revenues and operating profit to rise by a further 6.9% and 8.1% respectively in 2025.
The tobacco division core revenues grew 14.5% at constant currency and volumes were up 3% in the quarter. Annually, they rose 9.1% and 2.4%, respectively.
