Koji Shimayoshi has been appointed as executive vice president (effective Jan. 1, 2024) and representative director (effective March 22, 2024). Shimayoshi is currently executive vice president of JT International. He joined JT in April 1993.
Shimayoshi will take the place of Kiyohide Hirowatari, who will become a member of the board, effective Jan. 1, 2024. Hirowatari will resign as member of the board upon conclusion of the 39th annual general meeting of shareholders scheduled for March 22, 2024.
Hiroko Yamashina and Kenji Asakura have been appointed members of the board, effective March 22, 2024. Yamashina is currently a member of the audit and supervisory board, and Asakura is currently representative director and chairman of Nagase and Co. Ltd. Main Kohda will resign as member of the board, effective March 22, 2024. Emiko Takeishi will also join the audit and supervisory board as a member.
Igo Dzaja will take on the role of senior vice president of marketing and tobacco business for Japan, effective Jan. 1, 2024. Kazuyuki Inui will take on the role of senior vice president of sales and tobacco business for Japan, effective Jan. 1, 2024. The following executive directors will resign effective Dec. 31, 2023: Eiichi Kiyokawa, Chigusa Ogawa and Shuici Hirosue.
Japan Tobacco reported revenue of ¥2.66 trillion ($19.97 billion) in 2022, up 14.3 percent over the previous fiscal year.
Operating profit increased by 31 percent to ¥653.6 billion. Profit increased by 30.8 percent to ¥442.7 billion.
For full-year 2023, revenue is forecast to decrease by 1.1 percent to ¥2,629 billion. Operating profit is forecast to decrease by 6.4 percent to ¥612 billion. Profit attributable to owners of the parent company is forecast to decrease by 0.6 percent to ¥440 billion.
Masamichi Terabatake
“The JT Group reported another strong performance in 2022, driven by solid pricing and sustained market share gains in the tobacco business, overcoming the global challenges,” said Masamichi Terabatake, president and CEO of the JT Group, in a statement. “We continued to make progress in the reduced-risk products category, with Ploom X increasing share in the HTS (heated-tobacco sticks) segment in Japan and the launch of Ploom X in London.”
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.”
Japan Tobacco (JT) has been selected for the second consecutive year for inclusion in the Dow Jones Sustainability Asia/Pacific Index (DJSI Asia/Pacific), the worldwide index for socially responsible investment, the company announced Sept. 13.
The DJSI is a collaborative initiative by S&P Dow Jones2 Indices of the United States and RobecoSAM3 of Switzerland. It assesses the sustainability performance of companies based on economic, environmental and social criteria.
From among approximately 600 major companies in the Asia-Pacific region, including Japan, 145 companies (62 of which are Japanese companies) were named to the DJSI Asia/Pacific this year.
In accordance with its management principles, the JT Group, which sells its products in more than 120 countries and regions, balances the interests of consumers, shareholders, employees and society; fulfills its responsibilities to them; and aims to exceed their expectations. With this in mind, the JT Group carries out various initiatives in countries where it operates, and plans to continue to contribute to sustainability through its businesses.
Japan Tobacco today announced a proposal to restructure its manufacturing facilities in the European Union (EU) for the purpose of optimizing its operations and strengthening its competitive position in a challenging operating environment. The company will undertake appropriate consultations with employees’ representatives and the European Works Council on the proposal to change its product sourcing, which could lead to the closure of some of its manufacturing sites.
The prolonged challenging economic environment and excise tax pressure has triggered industry volume contraction in key European countries. This is compounded by the need to comply with legislation, including the revised EU Tobacco Products Directive, which will significantly reduce the number of pack formats to be produced for various markets. These developments have forced the company to review its manufacturing operations.
Under the proposal, the company’s facilities in Lisnafillan, Northern Ireland, and Wervik, Belgium would cease to operate, with production moving to other facilities, potentially in Poland and Romania.
Other tobacco product manufacturing in Trier, Germany, would also be relocated, with the exception of Ploom-related production.
Support for affected employees will be discussed as part of the consultation process. This proposal would affect approximately 1,100 full-time jobs across the EU.
JT says the restructuring proposal will be implemented in phases, recognizing the needs of each country, with factory closures completed between 2016 and 2018.
Japan Tobacco Inc’s domestic cigarette sales volume during March, at 9.7 billion, was down by 3.6 percent on its March 2012 volume, 10.1 billion, which itself was down by 3 percent on that of March 2011, according to preliminary figures issued by the company.
Volume during the 12 months, April 2012-March 2013, at 116.2 billion, was up by 7.2 per cent on its April 2011-March 2012 volume, 108.4 billion, which was down by 19.5 per cent on that of April 2010-March 2011.
JT’s market share stood at 60 percent in March, at 59.6 percent during April 2012-March 2013, and at 54.9 percent for the full year to the end of March 2012.
JT has suffered huge domestic volume swings in recent times because of an unprecedented, mainly tax-driven price hike on October 1, 2010, and the massive disruption caused to the company’s manufacturing and distribution operations following the earthquake and tsunami of March 11, 2011.
JT’s domestic cigarette revenue during March, at ¥53.4 billion, was down by 4 percent on its March 2012 revenue, ¥55.6 billion, which was down by 3.4 percent on that of March 2011.
Revenue during April 2012-March 2013, at ¥639.5 billion, was up by 7.2 percent on its revenue during April 2011-March 2012, ¥596.6 billion, which was down by 3.3 percent on that of April 2010-March 2011.
Japan Tobacco Inc. said today that it will relaunch from late May its Zerostyle Mint smokeless tobacco product with improved flavor and aroma, and a redesigned pack.
The relaunched product, Zerostyle Blue Mint, which is due to be rolled out across Japan, will have the same flavour and aroma as that of Zerostyle Drive Concept, which proved popular with consumers when it was launched in limited quantities in October 2012.
JT said in a press note posted on its website that Zerostyle Drive Concept had proved popular because of its “brisk and strong menthol flavor and aroma,” combined with a “subdued sweetness.”
The new product will retail in a pack whose design is based on that of Zerostyle Mint but that uses a blue color tone to reflect the brisker, stronger menthol flavour.
