Tag: Japan Tobacco

‘JT’s Strategy Not Paying Off’

Photo: Taco Tuinstra
Diversifications and acquisitions have not paid off for Japan Tobacco (JT), according to Seeking Alpha, a crowd-sourced contents service for financial markets. Despite relatively stable sales trends and operating margins, JT shareholder value has declined in recent years.
Confronted by sales declines in its domestic market, JT in recent years shifted its focus to nontobacco markets, investing in pharmaceuticals, bakeries and processed foods, among other sectors. JT also acquired other tobacco brands and businesses, including Natural American Spirit; PT Karyadibya Mahardhika; United Dhaka and Donskoy Tabak, for large sums.
According to Seeking Alpha, these acquisitions have not yielded the desired results.
“Since 2017 when ESG [environmental, social and corporate governance] started to gain momentum, JT’s performance has not been good enough to support the share price despite relatively stable free cash flow generation,” Seeking Alpha wrote. “We conclude that the risk profile of the business continues to rise, and the company has not allocated its capital successfully in order to mitigate these risks. With a lack of progress and no easy answers, we rate these shares a sell.”
February 4, 2021
JT Expands Sales of ‘Ploom TECH+ With’
Japan Tobacco (JT) plans to expand in Japan sales of “Ploom TECH+ with,” the more compact version of JT’s tobacco-infused vapor series, Ploom TECH+. The new device will gradually be available nationwide starting at Ploom shops and select tobacco retail stores from Feb. 1, 2021, along with convenience stores from Feb. 2, 2021.
To commemorate the nationwide expansion, JT is offering a limited time discount for the “Ploom TECH+ with” starter kit.
“After receiving positive feedback from our consumers since its launch last November, we are delighted to announce the nationwide expansion of ‘Ploom TECH+ with,’” said Toru Takahashi, vice president of the marketing group product and brand division for reduced risk products, in a statement.
“While still retaining the features of Ploom TECH+, such as producing less smell than cigarette smoke and not requiring wait time to start or finish using the device, ‘Ploom TECH+ with’ is more compact and easy to use, and we believe our consumers will find this device to enrich their experience than ever before.”
January 13, 2021
Tobacco Firms Lauded for Sustainability

Photo: Gerd Altmann from Pixabay
CDP, a global environmental nonprofit, has recognized Japan Tobacco and Imperial Brands for their leadership in corporate sustainability.
JT achieved a place on CDP’s prestigious A List for tackling climate change as well as acting to protect water security for the second consecutive year. In addition, in December 2020, the company endorsed the recommendations of the Task Force on Climate-related Financial Disclosures.
“We are delighted to be included in the CDP’s Climate A List and Water A List for the second consecutive year. This clearly reflects our continued efforts to reduce our environmental footprint and our transparency in disclosing information,” said Kazuhito Yamashita, member of the board and senior vice president, chief sustainability officer, compliance and general affairs in a press note.
Imperial Brands too secured a place on CDP’s prestigious “A List” for tackling climate change for the second successive year.
The business has been recognized for its actions to cut emissions, mitigate climate risks and transition to a lower-carbon economy, based on the data reported through CDP’s 2020 climate change questionnaire.
Stefan Bomhard
“To retain our A rating is a tremendous achievement that highlights our commitment to reducing our carbon footprint,” said Imperial Brands Chief Executive Stefan Bomhard in a statement. “The data we provided for review by CDP was extensive and I’d like to thank everyone who was involved in pulling together such an impressive submission.”
CDP’s annual environmental disclosure and scoring process is widely acknowledged as the gold standard of corporate environmental transparency. Japan Tobacco and Imperial Brands are among a small number of A List companies out of more than 5,800 that were scored.
A detailed and independent methodology is used by CDP to assess companies based on the comprehensiveness of disclosure, awareness and management of environmental risks and demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets.
“We extend our congratulations to all the companies on this year’s A List,” said Paul Simpson, CEO of CDP. “Taking the lead on environmental transparency and action is one of the most important steps businesses can make, and is even more impressive in this challenging year marked by Covid-19.”
December 8, 2020
Tobacco Companies Included in Sustainability Indices

Photo: Gerd Altmann from Pixabay
British American Tobacco (BAT) and Japan Tobacco (JT) have been recognized for their sustainability efforts.
BAT has been named in the Dow Jones Sustainability Indices (DJSI) for the 19th consecutive year. It is the only tobacco company to be included in the prestigious DJSI World Index.
In a statement, BAT said it is the highest scoring tobacco company in 2020, with industry leading scores in 13 of the 23 categories assessed, while achieving a top score of 100 percent in seven categories.
“At BAT, sustainability is at the heart of our transformation, and we are proud to have been included in the DJSI for a 19th consecutive year, said Kingsley Wheaton, chief marketing officer at BAT, in a statement.
“We believe our inclusion in the DJSI World Index, combined with the recognition we have received from other respected ESG ratings agencies including MSCI and Sustainalytics, is testament to our commitment to accelerate the transformation of our company.”
“We congratulate BAT plc for being included in the DJSI World and Europe,” said Manjit Jus, global head of ESG research and data, S&P Global.
“A DJSI distinction is a reflection of being a sustainability leader in your industry. With a record number of companies participating in the 2020 Corporate Sustainability Assessment and more stringent rules for inclusion this year, this sets your company apart and rewards your continued commitment to people and planet.”
JT has been selected as a member of the Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific) for the seventh consecutive year.
From among approximately 600 major companies in the Asia-Pacific region, 158 companies (including 82 Japanese companies) are included in the DJSI Asia Pacific this year.
The JT Group’s sustainability strategy is formulated based on the company’s “4S” model, its management principles, and encompasses its materiality analyses. The foundations of JT’s sustainability strategy, are our respect for human rights, improved social and environmental impact and good governance and business standards.
“We are delighted to remain as a member of DJSI Asia Pacific for the seventh consecutive year,” said Kazuhito Yamashita, member of the board and senior vice president, chief sustainability officer, compliance and general affairs at JT, in a statement. “This clearly reflects our continued holistic approach to address social and environmental issues, particularly the development of sustainable growth of societies and climate change which both have a major impact on society and our business.”
Created by S&P Dow Jones Indices, the DJSI represents the gold standard for tracking corporate sustainability. In 2020, around 3,500 companies had their sustainability practices assessed against ESG (environmental, social, governance) criteria. Only the top 10 percent are recognized as leaders in corporate sustainability and achieve DJSI World Index inclusion.
November 16, 2020
JT recognized as LGBT-Friendly

Photo: JT
Japan Tobacco (JT) has received the highest ranking in the PRIDE Index 2020 for the fifth consecutive year. Created by Work with Pride, the index evaluates companies’ initiatives related to LGBT and other sexual minorities in Japan.
“We are delighted to receive the Gold recognition for the fifth consecutive year,” said Koichi Mori, JT’s senior vice president of human resources, in a statement. “At JT, we position respecting diversity as one of key management challenges.”
JT believes that embracing diversity and finding value in differences will bring about sustainable growth. The company has taken a variety of initiatives to create, develop and enhance the work environment by fostering diversity, where everyone can freely express their own personalities and recognize one another’s differences.
November 13, 2020
JT Ups Forecast After Strong Quarter

Masamichi Terabatake (Photo: JT)
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.”
October 30, 2020
Japan Council Sets 2021 Leaf Prices and Cultivation Area

Photo: Kanenori
Japan’s Leaf Tobacco Deliberative Council has set the domestic tobacco cultivation area at 5,970 hectares for 2021, a decrease of 5.7 percent compared to the 2020 cultivation area.
The leaf tobacco purchase price will increase by 0.62 percent from last year to an average of ¥1,924.15 ($18.32) per kilogram for all leaf types.
The Leaf Tobacco Deliberative Council confers on matters concerning the cultivation and purchase of domestically grown leaf tobacco in response to inquiries by Japan Tobacco (JT).
Currently chaired by Yoshitsugu Minagawa, the council consists a maximum of 11 members, appointed by JT and approved by Minister of Finance from among representatives of domestic leaf tobacco growers and academic scholars.
October 26, 2020
JT Approves Domestic Burley for Consumption
Japan Tobacco (JT) has cleared this year’s burley harvest in Japan for use in its cigarettes.
Since the accident at the Tepco Fukushima Daiichi nuclear plant in 2011, JT has been conducting pre-purchase radioactive material tests of domestic leaf tobacco and several other tests at each stage of its production process.
Tests for this year’s burley have now been completed. None of the leaf tobacco had traces of radioactive material exceeding the JT standard value (radioactive cesium: 100Bq/kg), the company confirmed in a statement.
JT will continue with its scheme of testing domestic leaf tobacco after purchase, to test and monitor at each stage of the productions process several times.
In related news, JT announced that it will discontinue disclosure of pre-purchase test results for domestic leaf tobacco after this report (2020).
Recently, in radioactive material testing on agricultural products conducted by Fukushima Prefecture and other prefectures, there have been virtually no cases where the traces of radioactive material exceeded the standard values, and the company’s survey is on the decline.
In addition, no cases exceeding JT standard value have been observed in the company’s test results.
JT will continue with its scheme of testing domestic leaf tobacco upon purchase.
October 16, 2020
JT Completes Head Office Relocation

Photo: Taco Tuinstra
Japan Tobacco (JT) has completed the relocation of its head office to the Kamiyacho Trust Tower from the JT Building.
JT will occupy five floors from the 26th floor upward, with JT’s general reception located on the 30th floor, the company wrote in a press release.
October 7, 2020
Japan Tobacco Launches More Compact Ploom Tech
Japan Tobacco (JT) will launch “Ploom Tech+ with” a new, more compact device from the Ploom Tech+ series.
The new device will be available at the Club JT online shop along with Ploom shops and select tobacco retail stores located in Tokyo from Nov. 2, 2020, and at convenience stores in Tokyo from Nov. 3, 2020.
Ploom Tech+ with offers better portability and increased convenience. The device also has upgraded features, such as faster charging and a display to indicate the batter and capsule usage levels as well as an instant activation feature.
“We are delighted to announce the launch of ‘Ploom Tech+ with,’” said Toru Takahashi, vice president of the marketing group product and brand division for reduced-risk products, in a statement. “The portable size enables the device to blend right in to each consumer’s lifestyle without stress, expanding the opportunities for consumers to explore and experience T-vapor.”
October 7, 2020