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Tag: JT

  • Japan’s HTP Tax Changes Threaten JTI Growth: CFO

    Japan’s HTP Tax Changes Threaten JTI Growth: CFO

    Tax changes in Japan that will eliminate preferential tax treatment for heated tobacco products are expected to weigh on growth this year, according to Japan Tobacco International CFO Vassilis Vovos. The policy shift would tax heated tobacco at the same rate as traditional cigarettes, potentially raising retail prices by 70 to 100 yen ($0.46 to $0.65) per pack after sales tax. Vovos said the company plans to introduce incremental price increases throughout 2026 to offset the impact and avoid a single steep price hike.

    The tax change poses a challenge to JTI’s expansion of its Ploom heated tobacco device in Japan, the world’s largest heated tobacco market, which is currently led by rival Philip Morris International, according to Reuters. Parent company Japan Tobacco has relied on newer product categories to drive growth, with Ploom volumes rising more than 38% last year and reaching a 14.4% share of the heated tobacco segment. While executives warned the tax change could temporarily slow category growth, they said heated tobacco remains a key long-term revenue driver.

  • 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.”

  • JT Applies to Raise Prices of Plume and Wiz Products

    JT Applies to Raise Prices of Plume and Wiz Products

    Japan Tobacco (JT) submitted an application to Japan’s Minister of Finance yesterday (January 27) seeking approval to revise the retail list prices of cigarettes, aligned with the government’s review of the heated tobacco taxation system effective April 1. The application covers all 37 variants of Plume tobacco sticks and Wiz tobacco capsules, marking a comprehensive price adjustment across JT’s heated tobacco portfolio. JT said the proposed revisions are intended to help maintain product quality and brand value while continuing to meet consumer expectations amid changes to the tax framework. If approved, the new retail prices will take effect from April 1, with the company acknowledging the added cost to consumers while committing to further improvements in product quality and customer service.

  • 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.

  • JT Introduces ‘Purple Dusk’ for Ploom AURA

    JT Introduces ‘Purple Dusk’ for Ploom AURA

    JT released the fourth offering in its limited color series for the Ploom AURA today (January 13), introducing “Purple Dusk.” It joins “Amber Haze,” “Bronze Royal,” and “Aqua Green.”

    Regarding Purple Dusk, JT says, “the deep colors reminiscent of the night scene and the accented patterned front panel create a mysterious atmosphere and presence. It contains the desire to be close to the moment to enjoy the night in your own way and to encourage the time you spend with your sensibility.”

    A limited quantity is available in Japan for pre-sale at CLUB JT online shop and Ploom Shop for 2,980 yen ($18.77). It will be available at convenience stores and some tobacco stores beginning January 20.

  • JT Launches EVO Honey Lemon for Ploom

    JT Launches EVO Honey Lemon for Ploom

    Japan Tobacco (JT) introduced the EVO Honey Lemon Crystal, a new flavored smoke stick for its Ploom heated tobacco brand, that will be available in Japan beginning today (December 16) through the CLUB JT online shop and Ploom Shops, followed by a nationwide rollout in convenience stores and tobacco retailers on January 16, 2026.

    The EVO Honey Lemon Crystal “combines lemon-flavored capsules with honey sweetness to offer a balanced, dual-profile sensory experience.” It is compatible with all Ploom devices, sold in packs of 20 sticks at a retail price of JPY 550 ($3.70).

    The launch follows recent additions to the Ploom EVO lineup, including Evo Black Menthol and Evo Fresh Mint (released December 1) and a formula upgrade for Evo Cold Menthol in November, expanding the EVO mint range. JT’s Ploom smoke stick portfolio now totals 27 variants, catering to diverse flavor preferences in Japan’s heated tobacco market.

  • JT Announces Board, Leadership Changes

    JT Announces Board, Leadership Changes

    Japan Tobacco Inc. (JT) announced several resolutions from its Board of Directors concerning the company’s new and revised executive appointments, including changes among its Representative Directors. The most notable change is that Takehiko Tsutsui is being promoted from executive vice president of JT International to assume the office as president and Chief Executive Officer, replacing Masamichi Terabatake, who will become the deputy chairperson of the Board. The move will be effective January 1, 2026, subject to ratification at the company’s shareholders’ meeting and approval of the Board of Directors. Tsutsui joined JT in 1997 and has been a vice president since 2012.

    The company also announced that Shigeaki Okamoto will become the new chairperson of the Board, appointed Yukiko Uchida to the Board, and announced the resignations of Yukiko Nagashima and current chair Mutsuo Iwai. The Board changes will be effective at the conclusion of the shareholders’ meeting scheduled for March 25, 2026.

    In other moves, Adam Vilalta was named senior vice president of marketing of Tobacco Business in Japan with the resignation of Igor Dzaja, and Hisashi Shimobayashi was promoted to senior vice president, Chief Technology & Information Security Officer.

  • JT Completes €500 Million Subordinated Bond Issuance

    JT Completes €500 Million Subordinated Bond Issuance

    Japan Tobacco International Financial Services B.V. (JTIFS), a subsidiary of Japan Tobacco Inc. (JT), completed the issuance and settlement of €500 million Euro-denominated subordinated bonds due 2055. The transaction was first announced on August 27.

    The securities, which carry equity-like features while being classified as debt, were launched to refinance JTIFS’s existing subordinated bonds due 2081.

    JT said the transaction, which also included the settlement of a related tender offer, will help strengthen the group’s financial foundation. The new securities are callable at the issuer’s discretion from March 2031 and on subsequent interest payment dates.

  • JT Launches Ploom AURA in Japan

    JT Launches Ploom AURA in Japan

    Japan Tobacco Inc. launched its next-generation heated-tobacco device today (May 27) in Japan, the Ploom AURA. The device will initially be available in its Ploom stores and CLUB JT online shop. In parallel, JT Group will roll out EVO, its exclusive and premium heated tobacco sticks, “to complement Ploom AURA and provide adult consumers with the latest and most technologically advanced propositions in the heated tobacco segment,” according to the company. A nationwide launch of Ploom AURA and EVO will start on July 1 in convenience stores and tobacco retail shops, and will roll out globally in the near future.

    “In the reduced-risk products [RRP] category, we are focusing on providing adult consumers with quality products, rooted in technology, consumer insights, and experience, and I truly believe Ploom AURA embraces all these aspects and more,” said Takehiko Tsutsui, executive vice president of RRPs.

    JT Group said it will continue to prioritize investments in the heated tobacco sticks segment through 2027, and will be investing 650 billion yen ($4.5 billion) in RRP, much for the Ploom AURA and its launch.

    “The RRP category is reshaping the global tobacco landscape, and I am confident that Ploom AURA and EVO will play key roles in supporting JT Group’s ambition of reaching mid-teens share in the HTS segment by 2028,” said Tsutsui.

  • JT Announces First Quarter 11.7% YoY Increase

    JT Announces First Quarter 11.7% YoY Increase

    Today (May 7), JT Group reported first-quarter 2025 revenue of ¥827 billion ($5.8 billion), up 11.7% year-on-year, driven by double-digit growth in reduced-risk products (RRP). Adjusted operating profit was ¥273.8 billion ($1.9 billion), a 20.8% increase year-on-year, while net profit attributable to shareholders was ¥157.5 billion ($1.1 billion), a slight increase of 0.1% over last year.

    Management noted that the profit growth was mainly driven by the tobacco business and announced plans to divest its pharmaceutical business, with the transaction expected to close in the second half of the year. Management reiterated its medium- to long-term strategic goal of achieving approximately 15% market share in key heated tobacco markets by the end of 2028.

     “The JT Group achieved strong top-line growth in the first quarter, driven by solid pricing in the tobacco business, resulting in a 20.8% increase in adjusted operating profit at constant FX,” said Masamichi Terabatake, President and CEO of the JT Group. “In HTS [heated tobacco sticks], our strategic investment priority, Ploom steadily grew its share in Japan and overseas markets, leading to a significant 19.0% increase year-on-year in RRP volume. To accelerate our growth in RRP, we plan to launch a new Ploom device and stick ecosystem, starting with Japan. Details on the new products will be provided on May 27 at the launch event. We continue to make steady progress towards our 2028  ambitions for the RRP business of achieving mid-teen HTS segment share in key markets.”