Japan Tobacco's Volume Increase

September 8th, 2014 00:00

Japan Tobacco's local cigarette volume sales in the course of the 12 months constituted 3.3 % higher in comparison to those of the similar period in 2013. JT revealed that the volume boost was way down to a solid growth in market share and a singular raise in demand in advance of a VAT rise.

cigarettes

Also the company revealed that its Mevius brand continues to be the major driving force, bringing a 61% gain. “Within one year since its rebranding in 2013, entire sales volume advanced for the first time since 1998,” JT stated. “The launch of new smoking products as Mevius Premium Menthol Option and Mevius Premium Menthol Spread lead to the company’s more solid position in the expanding menthol area.”
The local cigarette business’ key profits in the course of the 12 months have boosted by 3.4 % on that of the previous 12 months. At the same time, Japan Tobacco International’s shipment volume for the period of the 12 months to the end of 2013, declined by 4.6 % in comparison to that of the prior year, 436.5 billion.

JT mentioned that JTI’s volume had dropped by 4.6 % mostly because of considerable industry compression and trade inventory changes in a number of markets. “Even with global key brands shipment volume increase in Austria, Czech Republic, Germany, Kazakhstan, Middle East and African markets, Romania, Southeast Asia markets, Sweden and Turkey, the shipment volume dropped by 0.8 % from around 268.8 billion to 266.6 billion,” it confirmed. “Year-over-year market share boosted in France, Italy, Spain, Taiwan, Turkey and the U.K. In Russia for instance, the entire share of value and global key brands share of market persisted to increase.”

JT’s profit in the course of the 12 months have increased by 13.2 % on that of the preceding 12 months, whilst changed earnings before interest, tax, depreciation, and amortization (EBITDA) raised by 20.9 %, and operating revenue was higher by 21.8 %. “Our worldwide tobacco business came to double-digit EBITDA boost at steady currency against a backdrop of a progressively difficult environment, one more time showing the power of our business basics,” stated JT’s president and CEO, Hiroshi Kimura, in proclaiming the consolidated final results.

Its key profit increased by 1.2 % to US$2,761 million, and its adjusted operating income boosted by 4.8 % to US$1,023 million.

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