JT Group 2018 Second Quarter Financial Results

Highlights

  • First half adjusted operating profit at constant FX increased 3.1% year on year.

  • Strong performance in the international tobacco business more than offset headwinds in the Japanese domestic tobacco business.

  • Forecast for adjusted operating profit at constant FX remains unchanged.

  • As stated in the “Business Plan 2018”, the Company announced an interim dividend of JPY 75 per share.

Key business segment information:

International tobacco business

  • Adjusted operating profit at constant FX grew 13.2% driven by pricing gains across clusters.

  • Acquisitions in Ethiopia, Indonesia and the Philippines bolstered shipment volume, supporting geographic expansion.

  • Key markets update:

    • Russia: Solid pricing and market share gains. Completed the Donskoy Tabak acquisition

  • On track to achieve 2018 profit target through top-line growth

Japanese domestic tobacco business

  • Adjusted operating profit was negatively impacted by cigarette industry volume decline.

  • RRP sales volume and its related revenue increased sequentially due to Ploom TECH’s nationwide roll-out in June.

  • 2018 outlook for cigarette and RRP market sizes is revised to reflect current dynamics. [...]

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