Today (May 7), JT Group reported first-quarter 2025 revenue of ¥827 billion ($5.8 billion), up 11.7% year-on-year, driven by double-digit growth in reduced-risk products (RRP). Adjusted operating profit was ¥273.8 billion ($1.9 billion), a 20.8% increase year-on-year, while net profit attributable to shareholders was ¥157.5 billion ($1.1 billion), a slight increase of 0.1% over last year.
Management noted that the profit growth was mainly driven by the tobacco business and announced plans to divest its pharmaceutical business, with the transaction expected to close in the second half of the year. Management reiterated its medium- to long-term strategic goal of achieving approximately 15% market share in key heated tobacco markets by the end of 2028.
“The JT Group achieved strong top-line growth in the first quarter, driven by solid pricing in the tobacco business, resulting in a 20.8% increase in adjusted operating profit at constant FX,” said Masamichi Terabatake, President and CEO of the JT Group. “In HTS [heated tobacco sticks], our strategic investment priority, Ploom steadily grew its share in Japan and overseas markets, leading to a significant 19.0% increase year-on-year in RRP volume. To accelerate our growth in RRP, we plan to launch a new Ploom device and stick ecosystem, starting with Japan. Details on the new products will be provided on May 27 at the launch event. We continue to make steady progress towards our 2028 ambitions for the RRP business of achieving mid-teen HTS segment share in key markets.”
