Tag: Japan

  • JT on sustainability

    JT on sustainability

    The JT Group today published its 2016 Sustainability Report, which is said to highlight the key contribution of Japan Tobacco International, its international tobacco business, in achieving the group’s sustainability objectives.

    ‘The report is compiled in accordance with the “Core” Level of the GRI [Global Reporting Initiative] G4 Sustainability Reporting Guidelines, showing the JT Group’s commitment to being transparent in its sustainability performance,’ according to a note posted on the JTI website.

    JTI said that as part of its sustainability program it had brought 9,742 more children into schools in tobacco growing countries. ‘This is part of the company’s commitment to building sustainable economies in tobacco growing communities where we directly and indirectly purchase tobacco, through dedicated programs improving their economic, social and environmental conditions,’ the note said.

    In addition, JTI said, it had deployed more than 300 community investment programs in more than 60 countries. ‘JTI’s programs vary from the support to women in creating micro-enterprises in South Sudan to providing access to art for disabled adults in Italy,’ it said. ‘Many of the company’s programs involve the active participation of employees. In the United Kingdom, JTI continues to be one of only 34 holders of the CommunityMark for excellence in community investment.’

    And the company said it had been recognized as a Global Top Employer for the third consecutive year, ‘a testimony of the company’s consistent high-quality work environment and commitment to providing exceptional development opportunities to employees worldwide’.

    “Over the past year, we have made significant progress in delivering on our commitments to promoting sustainability both for the wider society and for the whole Group”, says Maarten Bevers, JTI’s corporate social responsibility vice president.

    “We set ourselves high standards and we are honored that our work is being recognized in various areas. Our long-term approach and determination to uphold rigorous business practices – from our support to tobacco growing communities to the work environment we offer our employees – is reflected in this report.”

    JTI said that the challenges it had tackled ranged from the elimination of child labor to respecting workers’ rights, maintaining adequate health and safety conditions, and providing access to water and sanitation, and reforestation.

    ‘For the first time in 2016, the JT Group was recognized as one of the world’s best climate change reporters by being included on the CDP’s Climate A List, the JTI note said. ‘It was also selected as a member of the Dow Jones Sustainability Asia/Pacific Index for the third consecutive year.’

    “As a global business, we have a responsibility to operate and manage our resources sustainably,” said Bevers. “We do this with the aim to deliver value to the JT Group’s wide range of stakeholders – consumers, shareholders, employees and the wider society, including the communities in which we operate.”

  • JT domestic volume down

    JT domestic volume down

    Japan Tobacco Inc.’s domestic cigarette sales volume during April, at 7.7 billion, was down by 3.4 percent on that of April 2016, 8.0 billion, according to preliminary figures issued by the company today. The April 2016 figure was down by 13.5 percent on that of April 2015.

    Volume during January-April, at 30.7 billion, was down by 12.6 percent on that of January-April 2016, 35.1 billion. The January-April 2016 volume was increased by 1.3 percent on that of January-April 2015.

    JT’s market share stood at 61.0 percent during April and during January-April, and at 61.1 percent during January-December 2016.

    JT’s domestic cigarette revenue during April, at ¥46.0 billion, was down by 3.1 percent on its April 2016 revenue, ¥47.5 billion, which was down by 8.8 percent on its revenue of April 2015.

    Revenue during January-April, at ¥182.4 billion, was down by 9.5 percent on that of January-April 2016, ¥201.5 billion, which was increased by 2.6 percent on its revenue of January-April 2015.

  • Vapor pushing out smoke

    Vapor pushing out smoke

    Japan Tobacco Inc’s domestic cigarette volume sales during the three months to the end of March, at 23.0 billion, were 15.3 percent down on those of the three months to the end of March 2016, 27.2 billion.

    JT reported today that the volume reduction was down mainly to the overall industry decline, which was partly caused by an increase in the vapor-product category.

    ‘Core revenue declined 10.4 percent [from ¥160.6 billion to ¥143.9 billion] due to the impact from the sales volume decline partially offset by the benefit from the retail price amendment of Mevius last year,’ the company reported.

    ‘Adjusted operating profit declined 13.0 percent [from ¥65.7 billion to ¥57.2 billion] due to lower core revenue and despite benefits from cost reduction initiatives.’

    Meanwhile, Japan Tobacco International’s shipment volume during the three months to the end of March, at 91.7 billion, was down by 2.9 percent on that of the three months to the end of March 2016, 94.4 billion. At the same time GFB (global focus brands) volume fell by 0.5 percent from 66.4 billion to 66.0 billion.

    JT said that JTI’s volume decline had been caused by industry-wide contractions in some markets, market share loss in the face of competitor-driven price discounting in the Commonwealth of Independent States, and unfavorable trade inventory adjustments when compared with the situation during the first quarter of last year.

    ‘GFB shipment volume was stable but grew excluding inventory adjustments, supported by strong performance in Iran and Taiwan,’ the company said.  ‘Year-on-year total and GFB market shares increased in several key markets.

    In US dollars, JTI’s core revenue at constant currency was said to have been stable at US$2,469 million [in Yen it was down 3.1 percent from ¥284.7 billion to ¥276.0 billion] as price/mix gains in several key markets offset the volume decline impact.

    ‘Adjusted operating profit at constant currency grew 1.5 percent [in Yen it was down 7.6 percent from ¥99.5 billion to ¥92.0 billion] driven by price/mix gains and cost reduction benefits including contribution from the manufacturing footprint optimization; while investments in emerging markets and emerging products continued.

    ‘On a reported basis, core revenue and adjusted operating profit declined 1.6 percent and 6.1 percent, respectively, due to unfavorable currency movements.’

    “We are making good progress towards achieving our full year profit target,” said Mitsuomi Koizumi, JT’s president and CEO in presenting the company’s consolidated results.

    “This quarter was impacted by unfavorable comparisons due to one-off specific factors in the previous year, but our underlying business performance and financial results were in line with our expectations.

    “The international tobacco business delivered steady profit growth at constant currency, in a challenging operating environment.

    “At the same time, we reaffirmed our robust operating base in the Japanese domestic tobacco business as assumed.

    “It is encouraging that the pharmaceutical and the processed food businesses continued to contribute to the Group.

    “I’m confident that we can achieve our full year target while continuing to invest for future sustainable growth amid a continuously challenging business environment.”

  • Smoking ban concessions

    Smoking ban concessions

    Japan’s Ministry of Health, Labor and Welfare is considering expanding the number of exemptions that would be allowed to proposed regulations restricting tobacco smoking in restaurants, according to a story in the Mainichi Daily News.

    The move marks a shift for the ministry that has been brought about by a backlash from some Liberal Democratic Party (LDP) lawmakers.

    The ministry had earlier said it could not comply with requests for further exemptions to its public-places, smoking-ban proposal because Japan would rank second to bottom on a four-tier World Health Organization scale even under the current proposal.

    However, the ministry, with the 2020 Tokyo Olympics and Paralympics in mind, has prioritized passing legislation during the current Diet session.

    In addition, it is believed that some officials within the government and ruling political parties wanted to avoid the topic becoming an issue during the Tokyo Metropolitan government election scheduled for this summer.

  • Smoking bans an Olympic effort

    Tokyo photo
    Photo by osamukaneko

    Ahead of the 2020 Summer Olympic Games in Tokyo, Japan’s Health, Labor and Welfare Ministry has drafted a set of measures calling for a tobacco smoking ban on the premises of public facilities such as schools and hospitals, and imposing penalties on violators, according to a story in the Japan Times. However, differences of opinion between opponents and proponents of the measures within the ruling Liberal Democratic Party is casting a pall over the measures’ prospects.

    The Times said that the crux of the issue lay in the contradictory policies that the government had pursued by trying to secure tobacco sales as a major source of tax revenue while simultaneously seeking smoking restrictions to protect public health. ‘What the government has been doing is tantamount to hitting the accelerator and the brakes at the same time,’ the Times story pointed out.

    The health ministry’s proposed measures would create three types of areas where smoking would be restricted or prohibited, with a proprietor violating the rules subject to a maximum fine of ¥500,000.

    The most strict rules would be applied to such facilities as medical institutions, elementary, junior-high and high schools, and child welfare centers, where smoking would be completely banned.

    Indoor smoking would be prohibited in such public venues as government offices, universities and sports facilities, and creation of smoking rooms would not be allowed in these places.

    In areas where indoor smoking would be banned ‘in principle’, such as restaurants and hotels, proprietors would have the freedom to create smoking rooms.

    The health ministry’s plans were compiled as a necessary step to prepare for the 2020 Games, but an outline of a draft of the measures released in October came under fire from industries that would be affected by the measures.

    “Owners of restaurants, coffee shops and bars fear that the new rules could force them out of business,” said Toshio Omori, head of a national confederation of trade organizations in food, beverage and other services.

    And Tadao Kikuchi, chairman of the Japan Food Service Association, said association members already provided customers with choices by designating smoking and non-smoking areas. The proposed rules, Kikuchi said “run counter to the diversity of the food and beverage industry and customers’ ability to choose what they like”.

    Some opponents of the measures have said that since they are being brought in because of the 2020 Games, they should be limited to Tokyo.

    The full story is at http://www.japantimes.co.jp/opinion/2017/04/23/commentary/japan-commentary/poverty-politics-tobacco-policy/#.WPyqwLsrK2w.

  • JT market share solid

    Japan photo
    Photo by Moyan_Brenn

    Japan Tobacco Inc.’s domestic cigarette sales volume during March, at 8.5 billion, was down by 20.4 percent on that of March 2016, 10.6 billion, according to preliminary figures issued by the company on Friday. The March 2016 figure was increased by 18.9 percent on that of March 2015.

    Volume during January-March, at 23.0 billion, was down by 15.3 percent on that of January-March 2016, 27.2 billion. The January-March 2016 volume was increased by 6.7 percent on that of January-March 2015.

    JT’s market share stood at 61.7 percent during March, at 61.0 percent during January-March, and at 61.1 percent during January-December 2016.

    JT’s domestic cigarette revenue during March, at ¥50.1 billion, was down by 16.4 percent on its March 2016 revenue, ¥60.0 billion, which was increased by 17.9 percent on its revenue of March 2015.

    Revenue during January-March, at ¥136.3 billion, was down by 11.5 percent on that of January-March 2016, ¥154.1 billion, which was increased by 6.7 percent on its revenue of January-March 2015.

  • Japan okays acquisition

    Japan okays acquisition

    British American Tobacco said yesterday that it had obtained unconditional antitrust approval from the Japanese authorities in relation to its proposed acquisition of Reynolds American Inc.

    ‘Together with the previously announced expiry of the HSR Act [Hart-Scott-Rodino Antitrust Improvements Act ] waiting period, the conditions related to antitrust approvals required as part of the closing conditions to the proposed acquisition have now been satisfied, BAT said in a note posted on its website.

    ‘Both parties continue to expect the transaction to close during the third quarter of 2017, subject to satisfaction or waiver of the other closing conditions specified in the merger agreement.’

    A similar statement was posted on RAI’s website.

  • JT’s domestic volume down

    Japan photo
    Photo by szeke

    Japan Tobacco Inc.’s domestic cigarette sales volume during February, at 7.4 billion, was down by 12.4 percent on that of February 2016, 8.4 billion, according to preliminary figures issued by the company today. The February 2016 figure was increased by 1.9 percent on that of February 2015.

    Volume during January-February, at 14.5 billion, was down by 12.1 percent on that of January-February 2016, 16.5 billion. The January-February 2016 volume was increased by 0.1 percent on that of January-February 2015.

    JT’s market share stood at 61.3 percent during February, at 60.5 percent during January-February, and at 61.1 percent during January-December 2016.

    JT’s domestic cigarette revenue during February, at ¥43.6 billion, was down by 9.1 percent on its February 2016 revenue, ¥48.0 billion, which was increased by 2.7 percent on its revenue of February 2015.

    Revenue during January-February, at ¥86.2 billion, was down by 8.4 percent on that of January-February 2016, ¥94.1 billion, which was increased by 0.6 percent on its revenue of January-February 2015.

  • Further bans mooted

    Olympics photoThe Japanese government has said that it plans to restrict tobacco smoking in restaurants and other public venues ahead of the 2020 Olympics, according to a story in Japan Today.

    Under the health ministry plan, smoking would be banned in restaurants, except in rooms set up exclusively for smoking. Restaurants are understood to take in a wide range of food outlets, including Japanese-style pubs, and terrace areas of restaurants would be included in the ban even if located outside.

    Small bars with a floor space of less than 30 square meters and where minors were not expected to be present, would be exempted from the ban.

    And in hotels, people would be allowed to smoke in their own rooms.

    Smoking would be banned in schools, universities, hospitals and government offices. But while these facilities would not be allowed to set up smoking rooms, the new rules would allow existing rooms to remain in place for five years, if they met certain criteria.

    According to Japan Today, municipality officials would be required to warn those found to be smoking in a no-smoking area, and only if they refused to stop would they be liable to a fine of up to 300,000 yen.

    Building managers would be obliged to post notices specifying the no-smoking areas, and, if they failed to do so, they would face fines of up to 500,000 yen.

    The health ministry aims to impose the ban by submitting a bill during the ongoing Diet session through June, but it is not certain that the ban will be passed because ruling Liberal Democratic Party lawmakers affiliated with the tobacco and restaurant industries are against such a move.

    Japan’s current Health Promotion Law says that building managers should work to prevent passive smoking, but many non-smokers are exposed to second-hand smoke, according to the ministry.

    In fact, Japan is among the countries rated lowest for its tobacco control polices, having no smoke-free law covering all indoor public places, the ministry said, quoting the World Health Organization’s 2015 report on the ‘global tobacco epidemic’.

    After WHO and the International Olympic Committee agreed in 2010 to promote tobacco-free Olympic games, all countries that have hosted the Olympics have implemented or had in place appropriate regulations.

  • JTI volumes up in 2016

    JTI volumes up in 2016

    Japan Tobacco Inc. reported today that its domestic cigarette sales volume during the year to the end of December, at 106.2 billion, was down by 2.8 percent on that of the year to the end of December 2015, 109.2 billion.

    JT said that despite a positive performance by Natural American Spirit, the company’s domestic cigarette sales volume had decreased in the face of continued industry contraction, accentuated by the expansion of the T-vapor category, and the negative impact of the retail price amendment of certain products.

    Core revenue for the domestic tobacco business was said to have increased by 1.2 per cent to ¥649.7 billion driven by the positive impact of the acquisition of Natural American Spirit and the retail price amendment of certain products, including Mevius.

    And adjusted operating profit was said to have grown by 2.4 percent to ¥260.2 billion due to the higher core revenue and the benefits from measures taken to enhance the competitiveness of the business.

    Meanwhile, Japan Tobacco International’s total tobacco (including cigarettes, fine-cut, cigars, pipe tobacco and snus, but excluding water-pipe tobacco, emerging products and contract manufactured goods) shipment volume during the year to the end of December, at 398.7 billion, was increased by 1.2 percent on that of the year to the end of December 2015, 393.9 billion.

    And JTI’s Global flagship brand shipment volume was increased by 3.7 percent from 273.6 billion to 283.7 billion.

    JT reported that JTI’s shipment increase was driven by its performances in Brazil, Egypt, France, Germany, Iran, Italy, Kazakhstan, Korea, Myanmar, the Philippines, Spain, Taiwan and Turkey. It was supported by acquisitions and favorable trade inventory adjustments, mainly in the first quarter.

    The GFB shipment volume increase was said to have included the addition of two billion cigarettes from Natural American Spirit.

    JTI’s core revenue fell by 9.1 percent to ¥1,138.8 billion, while its adjusted operating profit fell by 14.7 percent to ¥336.2 billion.

    ‘In US Dollars, core revenue and adjusted operating profit at constant currency increased 8.5 percent and 13.4 percent respectively, driven primarily by robust price/mix contributions, while the business continued investing in seeding markets and emerging products for future sustainable growth,’ JT said in reporting its results. ‘On a reported basis, core revenue increased 1.5 percent as positive price/mix and total shipment volume growth offset currency downsides, while adjusted operating profit declined 5.0 percent due to unfavorable currency movements.

    ‘In Japanese Yen, core revenue and adjusted operating profit decreased 9.1 percent and 14.7 percent respectively due to the appreciation of the currency against the US Dollar.’

    JT’s consolidated revenue for the year to the end of December, at ¥2,143.3 billion, was down by 4.9 percent on that of the year to the end of December 2015.

    Operating profit was increased by 5.0 percent to ¥593.3 billion, while adjusted operating profit was down by 6.4 percent to ¥586.8 billion.

    “We are pleased that all the business segments have contributed to our profit growth at constant currency last year,” said Mitsuomi Koizumi, president and CEO of JT.

    “Our international tobacco business achieved another year of double-digit profit growth at constant currency, primarily driven by robust pricing combined with GFB performance. At the same time we managed to increase market share in several key markets in a continuously challenging environment.

    “Meanwhile, we have delivered steady profit growth in Japan, driven by the retail price change of Mevius and strong performance of newly added Natural American Spirit.

    “We will continue to take a number of strategic initiatives to strengthen our brand equity, geographic reach and emerging products in our tobacco businesses.  Our sustainable profit growth will principally come through the tobacco businesses supported by the pharmaceutical and the processed food businesses.”