Revenue up at JT

Japan Tobacco’s revenue and adjusted operating profit increased during the first quarter of 2016, supported by top-line growth in all businesses and a number of favorable one-off factors.

Adjusted operating profit at constant currency grew 20.6 percent, driven by the strong performance of each business and favorable one-off factors in the tobacco businesses and the pharmaceutical business.

On a reported basis, the growth rate in adjusted operating profit was 3.2 percent due to unfavorable currency movements in the international tobacco business.

Revenue increased 3.4 percent.

In JTs international tobacco business, total and ‘global flagship’ shipment volumes increased 7.1 percent and 10.7 percent, respectively, driven by continued market share momentum contributions from recent acquisitions and favorable one-off factors.

With volume growth and robust pricing, U.S. dollars-adjusted operating profit at constant currency grew 21.1 percent. Reported adjusted operating profit in Japanese Yen decreased 5.2 percent.

In the Japanese domestic tobacco business, adjusted operating profit grew 15.4 percent due to a one-off increase in demand ahead of retail price amendment of certain products and the recent acquisition of Natural American Spirit as well as the effects of measures to strengthen the competitiveness of the Japanese domestic tobacco business.

“Although the significant volume growth reported by the international tobacco business in this quarter is favorably impacted by recent acquisitions, our business momentum remains solid and we are making steady progress towards our year-end target,” said JT President and CEO Mitsuomi Koizumi.

“Domestically, sales volume and market share have increased in line with our expectations, supported by the acquisition of Natural American Spirit as well as a one off increase in demand ahead of the retail price amendment in April 2016. I’m pleased to confirm that we are on track to realize our full year target.”