Highlights
Adjusted operating profit at constant FX increased 9.2% year on year or 5.1% on a reported basis.
Strong performance in the international tobacco business more than offset headwinds in the Japanese domestic tobacco business.
The forecast for adjusted operating profit at constant FX is revised upwards.
Key business segment information:
International tobacco business
Total shipment volume grew strongly led by acquisitions in Ethiopia, Indonesia and the Philippines, as well as Russia where we completed the acquisition of Donskoy Tabak in the third quarter.
Adjusted operating profit at constant FX grew 16.2% driven by pricing gains.
The forecast for adjusted operating profit on a reported basis is revised downwards to reflect the negative effect of the currency movements. At constant FX, adjusted operating profit is revised upwards.
Japanese domestic tobacco business
Adjusted operating profit was negatively impacted by cigarette industry volume decline, but partially offset by favorable inventory movements by retailers ahead of a tax-led price increase.
Total market share combining conventional tobacco products and RRP has been recovering.
The forecast for adjusted operating profit remains unchanged. However, the market outlook for conventional tobacco products and RRP has been refined. [...]