Tag: JT Group

Japan Tobacco Reports Third-Quarter Results

Masamichi Terabatake (Photo: JT Group)
Japan Tobacco reported revenue of ¥2.21 trillion and adjusted operating profit of ¥681.7 billion at constant currency exchange rates for the third quarter of fiscal 2024, up 6.8 percent and 2.6 percent, respectively, from the comparable 2023 quarter. On a reported basis, core revenue increased 11 percent to ¥2.39 trillion and adjusted operating profit increased 1.2 percent to ¥672.5 billion. Operating profit increased 0.8 percent to ¥636.6 billion, and profit rose 0.1 percent to ¥442.4 billion.
“The JT Group posted another set of strong results for the third quarter, mainly driven by solid pricing in the tobacco business,” said JT Group President and CEO Masamichi Terabatake in a statement.
“Our solid market share momentum, combined with better-than-expected overall demand in a number of markets and the significant Ploom volume growth of 40 percent, resulted in total volume increasing by 2.2 percent year-on-year.
“The geo-expansion of Ploom, our investment priority, has now reached 23 markets, and in Japan, the largest Ploom market, we continued to gain share in the HTS segment, reaching 11.8 percent quarter-to-date. Overall, RRP-related revenue increased by approximately 22 percent year-on-year.
“Following the successful acquisition of Vector Group, I am very pleased to welcome the employees of VGR to the JT Group. I am confident that our expanded presence in the highly profitable U.S. market will improve the JT Group’s returns in combustibles and strengthen our mid[term] to long-term financial position through sustainable hard currency profit and cash flows.”
October 31, 2024
JT Completes Vector Acquisition

Image: somchaij
The JT Group completed the acquisition of Vector Group (VGR) on Oct. 7, following a tender offer, initially announced on Aug. 21.
The tender offer period, initiated on Sept. 4, 2024, expired at one minute after 23:59 Eastern Daylight Time, on Oct. 4, 2024. The conditions of the tender offer having been satisfied, the JT Group has accepted all such tendered shares, and, following a statutory merger on Oct. 7, 2024, VGR became a wholly owned subsidiary of the JT Group and was delisted from the New York Stock Exchange on Oct. 7, 2024.
In a statement, the JT Group said it expects the acquisition to improve the company’s return-on-investment in combustibles by significantly increasing the group’s presence and distribution network in the U.S, the second largest tobacco market in net sales and one of the most profitable.
October 8, 2024
Japan Tobacco Acquires Vector Group

The JT Group will acquire Vector Group (VGR), the fourth largest tobacco company in the United States.
Based on the purchase agreement, the JT Group will conduct a tender offer for all outstanding shares of VGR through Vapor Merger Sub, an entity established specifically for this acquisition.
The JT Group intends to acquire 100 percent of VGR’s outstanding fully diluted share capital for a per share price of $15, representing a total equity value transaction estimated at around $2.4 billion. The transaction, which is unanimously supported by the board of directors of VGR, is expected to be completed by Dec. 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions. Following closing, VGR will be a wholly owned consolidated subsidiary of JT and be delisted from the New York Stock Exchange.
“Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the U.S. cigarette market,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.
“This transaction delivers significant value to Vector Group stockholders and creates opportunities for our employees, who will become part of a leading global organization. Vector Group has an incredibly talented team who have been completely dedicated to building a strong business. JT Group has deep respect for Liggett Vector Brands’ legacy of value-focused, quality products and looks forward to continuing to meet customers’ evolving needs.”
“We are excited by this acquisition which, in line with our tobacco business strategy, will contribute to the acceleration of the ROI [return on investment] in our combustible business and expand JT Group’s global footprint,” said Masamichi Terabatake, JT Group CEO and president of the company’s tobacco business, in a statement.
“By adding this sizeable and historically profitable business to our company, we are confident the transaction will contribute to sustainable growth and increase JT Group’s corporate value.”
“This transaction will significantly increase our U.S. presence, boosting our market share from 2.3 percent to approximately 8 percent and giving us full ownership of two of the top-10 U.S. cigarette brands,” said Eddy Pirard, president and CEO of JT International.
“The transaction will enable us to also strengthen our distribution network and create mid- to long-term strategic opportunities to boost our competitiveness in this major tobacco market.”
August 21, 2024
JT Group Profit Up

Masamichi Terabatake
The JT Group reported revenue of ¥1.6 trillion ($10.63 billion) for the second quarter of 2024, up 12.7 percent over the comparable 2023 period. Profit increased by 6.3 percent to ¥305.2 billion.
“The JT Group posted another strong set of results for the first half, driven by continued market share gains and solid pricing in the tobacco business,” said President and CEO Masamichi Terabatake in a statement.
“Total volume increased by 2 percent year-on-year, with combustibles growing 1.7 percent and RRP [reduced risk products] up by a strong 25.5 percent. RRP volume was mainly driven by Ploom in the HTS segment, our investment priority, resulting in RRP-related revenue increasing by approximately 29 percent year-on-year.
“In the Japanese market, Ploom volume increased approximately 36 percent year-on-year, growing at a faster pace than total HTS demand in the market. Additionally, the geo-expansion of Ploom has now reached 21 markets, with sales volumes in markets outside Japan also steadily increasing.
“For the full-year performance forecast, we have revised our adjusted operating profit at constant FX [foreign exchange rates] upward, reflecting the positive momentum in the first half. On a reported basis, we have also revised our forecast upward, considering the continued impact of the current positive foreign exchange trend.”
August 2, 2024
Revenue and Profits up at Japan Tobacco

Photo: JTI
Japan Tobacco’s revenue increased by 11.3 percent to ¥740.3 billion ($4.75 billion), year-on-year, in the first quarter of 2024. Core revenue at constant currency exchange rates rose by 5.7 percent to ¥676.7 billion while adjusted operating profit at constant exchange rates increased by 3.4 percent to ¥231 billion.
On a reported basis, adjusted operating profit increased by 1.5 percent to ¥226.7 billion. Operating profit increased by 4.6 percent to ¥215.8 billion, and profit increased by 8.7 percent to ¥157.3 billion.
“The JT Group delivered robust results in the first quarter,” said President and CEO Masamichi Terabatake in a statement. “GFB [global flagship brands] volume growth and solid pricing, as well as RRP [reduced-risk product]-related revenue increasing by double-digits in the tobacco business, continued to drive the strong performance of the group.”
“RRP volume increased by 25.2 percent year-on-year, mainly driven by the HTS [heated-tobacco sticks] segment, which is our investment priority. Geo-expansion of Ploom X is on track; we have completed launches in four additional markets year-to-date. With plans to launch in four more markets by June, we are making good progress to deliver our ambitions set for 2028.”
May 9, 2024
JT Reports ‘Record’ Performance

Masamichi Terabatake (Photo: JT Group)
The JT Group reported a profit of ¥482.3 billion ($3.2 billion) for 2023, up nearly 9 percent over the previous fiscal year. Revenue increased 6.9 percent year-on-year, to ¥2.84 trillion. For the fourth quarter, the company posted a profit of ¥40.3 billion and revenue of ¥684.1 billion, up 3.5 percent and 5.4 percent, respectively, over the comparable 2022 periods.
“I am pleased to report that the 2023 JT Group performance reached record high levels across all financial indicators, despite the challenges across our operating environment. Adjusted operating profit at constant FX [foreign currency exchange rates], our main indicator, exceeded our guidance and grew by 5.2 percent, driven by all business segments,” said JT Group President and CEO Masamichi Terabatake in a statement.
In the tobacco business, JT Group’s profit growth engine, performance was driven by solid pricing and continued share gains in combustibles. “We steadily expanded the geographic reach of Ploom X, making it available to adult consumers in 13 markets at the end of 2023,” said Terabatake. In Japan, the JT Group’s share of the heated tobacco sticks market reached 11.4 percent in December 2023.
Terabatake said the JT Group would continue to prioritize investments in heated tobacco sticks to fund the expansion of Ploom X, both in terms of share of segment and geographic footprint. The company aims to make Ploom X available in over 40 markets by the end of 2026. Combustibles, said Terabatake, will continue to drive profit by growing market share and revenue.
February 13, 2024
Firms Recognized for Sustainability

Photo: lovelyday12
Philip Morris International and Japan Tobacco have been recognized for their environmental initiatives.
For the fourth consecutive year, PMI received a triple-A rating from CDP for its disclosures on climate change, forests and water security.
PMI has maintained a position on CDP’s Climate A-List for the past 10 years, reflecting its commitment to transparency and performance as the company progresses toward achieving its science-based targets as well as carbon neutrality for scope 1 and 2 by 2025 and net zero by 2040 for scope 1, 2 and 3.
PMI’s efforts to halt deforestation, moving to zero net deforestation in managed forests by 2030, have further been recognized by CDP, which placed the company on its Forests A-List for the fourth consecutive year. This is the fifth year that PMI has been featured on CDP’s Water A-List as the company works toward its water optimization targets, which include optimization of 10 million cubic meters of water in its tobacco growing areas by 2030.
“External recognition from organizations like CDP encourages us to continue our transformation journey and commitment to sustainability. We are pleased PMI has received CDP’s triple-A distinction for the fourth consecutive time,” said Scott Coutts, senior vice president of operations, in a statement. “Clear and transparent reporting of our progress helps us find new opportunities for action, identify and tackle growing risks, and get ahead of regulatory and policy changes.”
PMI is also committed to advancing the adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations and intends to publish its first TNFD-aligned report for financial year 2025. Accordingly, PMI has been included in an inaugural cohort of organizations that intend to become TNFD early adopters.
“We recognize the urgency to address climate change and protect biodiversity, and this is why our decarbonization strategy and progress are closely tied to preserving natural ecosystems,” said Jennifer Motles, chief sustainability officer. “We are proud to be an early adopter of the TNFD framework and will be reporting on it in 2025, which builds on the work we have already done to incorporate climate-related risk and opportunities into our overall business strategy and disclosure efforts, following the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations.”
Japan Tobacco was recognized by CDP for its leadership in corporate sustainability for a fifth year in a row. The JT Group is one of 61 companies worldwide and 22 in Japan to be included on the Climate Change A-List and Water Security A-List out of more than 23,000 companies participating in the 2023 CDP environmental disclosure program. Overall, this inclusion marks the group’s sixth recognition for climate change, and fourth recognition for water security.
“We are honored that the JT Group has been recognized on CDP’s A-List for a fifth consecutive year,” said JT Group Senior Vice President and Chief Sustainability Officer Hisato Imokawa, in a statement. “This inclusion reflects our continued efforts to reduce our environmental footprint and expand our transparency in disclosing information. ‘Living with the Planet’ is a key aspect of the JT Group Materiality, and we aim to achieve the sustainable relationship between nature, people and businesses through efforts to improve the impact of our activities on the environment. We are currently defining more ambitious targets for our environmental initiatives and plan to disclose them in early 2024. These targets will support our goals of contributing to the sustainable development of society by further fulfilling our responsibilities and maintaining the trust of our stakeholders.”
February 9, 2024
JT Ups Forecast on Strong Quarter

Photo: JT Group
The JT Group reported revenue of ¥2.16 trillion ($14.29 billion) in the third quarter of 2023, up 7.4 percent over the comparable 2022 quarter. At constant currency exchange rates, core revenue increased 5.9 percent to ¥2.05 trillion. Adjusted operating profit at constant exchange rates jumped 5.9 percent to ¥675.5 billion. On a reported basis, the adjusted operating profit was ¥664.4 billion, up 4.2 percent from the 2022 quarter.
“The JT Group posted another set of strong results for the third quarter. In particular, the tobacco business reported solid growth across its indicators, driven by continued market share gains and robust pricing,” said JT Group President and CEO Masamichi Terabatake in a statement.
“We are accelerating investments in HTS to establish the foundation of our future growth, and these investments are progressing as planned. The market share of Ploom X in the HTS segment in Japan is steadily increasing with share exceeding 10 percent in the periods of July to September 2023, despite a competitive business environment.
“In addition, since July 2023, we have launched Ploom X in Switzerland, Poland, Hungary, Romania and Greece, and plan to roll it out in Kazakhstan in early November. We expect to continue the geographical expansion of Ploom X, to reach 28 markets by year end 2024.
The JT Group increased its full-year forecast for adjusted operating profit at constant currency by ¥34 billion to account for the stronger year-to-date top-line growth of the tobacco business.
October 31, 2023
JT Launches ‘With 2’

Image: Japan Tobacco
Japan Tobacco has launched With 2, its new infused tobacco vapor device, under the company’s respective new brand, With. It will be sold at convenience stores and tobacco stores in Japan beginning Sept. 5, 2023, and will be available for presale online from Aug. 7, 2023.
With 2 is the first device of the new infused tobacco brand With. It features JT’s unique infused technology, which generates vapor while an atomized liquid passes through a capsule containing granulated tobacco.
Since tobacco vapor is generated the moment it’s inhaled, there is no delay in delivery, JT explained in a press note. There is almost no tobacco smoke smell with the product since tobacco leaves are not directly heated. The device is equipped with a dual mode that allows consumers to switch between two heating modes at the touch of a button. The high mode produces 1.3 times more vapor than the normal mode, delivering a more intense flavor experience, according to JT.
July 31, 2023
JT Group Reports ‘Solid’ Quarter

Masamichi Terabatake | Photo: JT Group
The JT Group’s revenues increased 9.9 percent to ¥1.39 trillion ($9.17 billion) in the second quarter of 2023, up 9.9 percent over the comparable 2022 period. Core revenue at constant exchange rates increased by 6.8 percent to ¥1.3 trillion, while adjusted operating profit at constant exchange rates increased by 4.7 percent to ¥434.3 billion. On a reported basis, adjusted operating profit increased by 6.7 percent to ¥442.8 billion. Operating profit increased by 8 percent to ¥413.6 billion, and profit increased by 8.7 percent to ¥287 billion.
“The JT Group posted another strong set of results for the first half, said JT Group President and CEO Masamichi Terabatake in a statement. “In particular, the tobacco business reported solid growth across its indicators, driven by a more resilient industry volume and continued market share gains, as well as robust pricing.
“Considering the accelerated investment towards heated tobacco sticks (HTS) in the second half of 2023, we have kept the full year forecast for adjusted operating profit at constant FX unchanged. On a reported basis, recognizing the current positive foreign exchange trend, we have revised upward our forecast, including the adjusted operating profit. Dividend per share guidance for full year remains unchanged taking into account our dividend policy at 188 yen per share. The interim dividend is 94 yen per share.
As announced in February, we are accelerating investment towards HTS to establish the foundation of our future growth. Ploom X is now available in six markets, following the launch in the Czech Republic in June, and will be launched in Switzerland in September. Geographical expansion is on track with the expectation to complete launches in 14 markets by the end of 2023 and 28 markets by the end of 2024.
July 31, 2023