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Tag: Japan Tobacco

  • JTI Malaysia: Illicit Cigarettes Dominate as Price Gap Widens

    JTI Malaysia: Illicit Cigarettes Dominate as Price Gap Widens

    “Cost pressure means consumers often cannot afford to think about safety,” was the message from Joseph Anak Janting, president of Malaysia’s Dayak Transformation Association (TRADA). The comment came as officials examined the nation’s thriving illicit tobacco market, not just its financial impact, but also the unknown ingredients being ingested from unregulated products.

    Japan Tobacco International (JTI) Malaysia released data today (April 30) that shows 57% of the Malaysian tobacco market is illicit, a number that climbs near 80% in regions such as Sabah and Sarawak, where the market is driven by a significant price gap. Legal cigarettes cost over RM20 ($5) per pack compared to illicit products that sell for as little as RM4 to RM8 ($1 to $2), following recent excise tax increases and retail restrictions. In Sarawak, where the average monthly household income is RM5,504 ($1,376) and rural incomes are significantly lower, Janting said the price gap is not a minor consideration; it is the difference between affording cigarettes and not affording them.

    JTI identified three primary categories of illicit products: counterfeit tax-stamp cigarettes, which have doubled to 16% market share since 2023; smuggled “whites” lacking tax stamps; and illegally imported kretek cigarettes. Officials said expansion of the illicit trade is contributing to an estimated RM4 billion in annual lost tax revenue, with enforcement challenges compounded by cross-border smuggling and counterfeit production networks.

  • JTI Adding €300M Factory in Romania

    JTI Adding €300M Factory in Romania

    Japan Tobacco International announced a €300 million investment to build a new, state-of-the-art factory in Ștefăneștii de Jos, marking its next step after more than 30 years of operations in Romania. In a LinkedIn post, JTI said the facility will add nearly 70,000 square meters of production space and feature advanced equipment, 100% renewable energy operations, expanded waste management, and a dedicated water treatment system, underscoring the company’s long-term commitment to sustainable manufacturing in the country.

  • Japanese Consumers Facing Double Hit

    Japanese Consumers Facing Double Hit

    The first phase of Japan’s tax increases on tobacco products and corporate income will take effect April 1, marking the first phase of a broader revenue plan to finance expanded defense spending, with additional increases planned for October and January 2027. Both conventional cigarettes and heated tobacco products will be affected, with the long-standing tax gap between the two categories set to narrow. The government aims to raise ¥1.3 trillion ($8.2 billion) in fiscal 2027 through staged hikes on tobacco, corporate, and personal income taxes to help fund a ¥43 trillion ($271 billion), five-year defense buildup that began in 2023.

    In response to the new corporate taxes, Philip Morris Japan said it will raise prices by ¥40–¥50 (25 to 32 cents) per pack on 50 heated tobacco products from April 1, while Japan Tobacco plans ¥20–¥30 (13 to 19 cent) increases on 37 products. Manufacturers have not yet outlined pricing responses for October’s tax hike.

    The Finance Ministry estimates tobacco tax revenue will increase by ¥44 billion ($277 million) in fiscal 2026, ¥116 billion in 2027 ($731 million), and ¥212 billion ($1.3 billion) annually thereafter as additional levies take effect. The measures come as Japan seeks to secure more than ¥9 trillion ($56.7 billion) in defense spending for fiscal 2026, reaching its 2% of GDP target ahead of schedule.

  • JT Takes $710M Dividend, Little Impact on Consolidated Results

    JT Takes $710M Dividend, Little Impact on Consolidated Results

    Japan Tobacco Inc. announced that its consolidated subsidiary, JT International Holding B.V., will distribute a dividend of approximately JPY 110.1 billion ($710 million) to Japan Tobacco, with receipt planned for March 26. The dividend will be recorded as non-operating income in JT’s non-consolidated financial statements for FY2026, but it is not expected to materially affect the company’s consolidated financial results for the year.

  • JTI Posts 12% Revenue Increase in Posting 2025 Financials

    JTI Posts 12% Revenue Increase in Posting 2025 Financials

    Japan Tobacco published its financial statements and independent auditor’s report for the 2025 fiscal year yesterday (March 24). The company reported strong year-on-year growth in 2025, with revenue rising to ¥3.5 trillion ($21.9 billion) from ¥3.06 trillion ($19.3 billion) in 2024 and gross profit increasing to ¥2 trillion ($12.3 billion). Operating profit more than doubled to ¥867 billion ($5.5 billion), driven by higher income and significantly lower selling and administrative expenses, while profit before tax climbed to ¥739.8 billion ($4.7 billion). Net profit for the period surged to ¥513.2 billion ($3.2 billion), up from ¥182.6 billion ($1.2 billion) the previous year, with earnings per share nearly tripling. Comprehensive income also rose sharply to ¥686.4 billion ($4.3 billion), reflecting stronger foreign exchange gains and overall improved performance.

    According to Investing.com, JT’s outlook for 2026 remains optimistic, with an expected core revenue increase of 3.6% and an 8.9% rise in adjusted operating profit at constant currency. The company plans to invest ¥800 billion ($5 billion) in reduced-risk products (RRP) from 2026 to 2028, focusing on consumer acquisition and retention. JT is also exploring mergers and acquisitions opportunities to further strengthen its position in both combustibles and RRP markets.

  • JTI Refreshes Nordic Spirit Look

    JTI Refreshes Nordic Spirit Look

    Today (March 3), JTI UK unveiled a refreshed brand identity for its Nordic Spirit nicotine pouches, introducing “striking new packaging” designed to enhance shelf visibility and provide clearer guidance for adult nicotine users. Inspired by the “North Star,” the updated packs — now live across JTI360 and rolling out in stores — feature Dry or Moist indicators for slower or faster nicotine release, alongside a six-dot strength system ranging from 6mg to 17mg. Each can contains 20 pouches and includes a compartment for used pouches, with recyclable polypropylene packaging.

    The refresh follows the launch of Nordic Spirit Frosty Mint Max and comes as the UK nicotine pouch category grows to £15.9 million per month. Brand Lead Manager James Richards said the redesign aims to improve shelf standout and help retailers better guide customers, while maintaining the same product quality and flavor range. The brand’s Moist Range was also named Product of the Year 2026 in the Nicotine Pouch category, marking its third major award in five years and reinforcing its position in the expanding UK market.

  • JTI Backs Unitary Tax for Vape Products in Philippines

    JTI Backs Unitary Tax for Vape Products in Philippines

    Japan Tobacco International backed a proposal to unify excise taxes on vapor products in the Philippines, telling lawmakers that a single rate would curb tax avoidance and strengthen revenue collection. Speaking at a House Ways and Means Committee hearing, JTI Director for Fiscal and Regulatory Affairs Mario Zinampan said differing tax rates for salt nicotine and freebase products create opportunities for misclassification and regulatory arbitrage, effectively enabling another form of illicit trade. He said harmonizing rates would help ensure a level playing field and prevent product misdeclaration.

    JTI also argued that a unified vape tax should be aligned with the rate imposed on heated tobacco products, noting that both are recognized alternatives to combustible cigarettes. Zinampan cited the legislative intent behind Republic Act No. 11467, which set the excise tax framework for combustible and non-combustible nicotine products, and said aligning vapor and heated tobacco taxes would promote coherence in the system. The remarks supported Romero ‘Miro’ Quimbo, chairperson of the House Ways and Means Committee, who renewed his call for a unitary vape tax, citing rising youth nicotine use at the hearing.

  • JT Reports Record Year with Revenue Up 13%

    JT Reports Record Year with Revenue Up 13%

    Japan Tobacco Inc. (JT) reported record fiscal 2025 results, with revenue rising 13.4% to JPY 3.47 trillion ($22.6 billion) and adjusted operating profit increasing 21.5% to JPY 902.2 billion ($5.9 billion), driven largely by tobacco business growth and the acquisition of Vector Group. Profit climbed 188.9% to JPY 499.1 billion ($3.2 billion), while free cash flow rose to JPY 272.7 billion ($1.8 billion), and the company plans to pay an annual dividend of JPY 234 ($1.52) per share.

    For fiscal 2026, JT forecasts continued growth, projecting revenue to increase 6.6% and adjusted operating profit to rise 7.9%, as it accelerates investment in heated tobacco products to complement its combustible cigarette portfolio and support long-term earnings expansion.

    “These achievements are the outcome of the strategic investments we have actively pursued over the years,” said JT Group president and CEO Takehiko Tsutsui. “In our Business Plan 2026, we intend to accelerate investments in heated products with the aim of establishing them as the second pillar of profit growth, alongside combustibles, in future years. Furthermore, we are targeting high single digit growth at a [compound annual growth rate] in consolidated adjusted operating profit at constant FX, driven by the tobacco business.”

  • JTI Announces Flores as GM of Global Travel Retail

    JTI Announces Flores as GM of Global Travel Retail

    Japan Tobacco International named Olesja Flores as general manager of Global Travel Retail, according to The Moodie Davitt Report. Flores, a JTI veteran with over 25 years of experience across Europe—including roles in Lucerne, Geneva, Copenhagen, and Vilnius—most recently served as general manager for JTI Switzerland for more than three and a half years. Based in Dubai, she will now lead JTI’s global travel retail operations, citing the city’s innovation and fast-paced environment as ideal for the dynamic travel retail channel.

  • JTI to Launch Four New EVO Flavors

    JTI to Launch Four New EVO Flavors

    Japan Tobacco (JT) is set to launch four new EVO variants for its Ploom heated tobacco line, covering mint, capsule (crushball), and regular (non-menthol) flavor segments, according to Neosmo. The variants—Green Mint, Cacao Mint Crystal, Tropical Lime Crystal, and Sakura Regular—will be sold in 20-stick packs at 550 yen ($3.50) each, keeping the range within the same price band. Two flavors go on sale January 22 and the remaining two on February 3, initially through CLUB JT online and Ploom retail stores. Consumers will vote to select one variant for nationwide distribution, including convenience stores, with results expected in early March.