Japan Tobacco Inc. (JT) (TSE: 2914) today reports its consolidated financial results for 2017 third quarter (January 1 – September 30, 2017) and its revised consolidated forecasts for 2017.
Highlights
2017 results for nine months (January – September): Adjusted operating profit at constantFX increased 2.8% driven by the international tobacco and pharmaceutical businesses.
2017 revised forecast: Adjusted operating profit at constant FX is forecast to grow from theprevious fiscal year despite a challenging operating environment.
Mitsuomi Koizumi, President and Chief Executive Officer of JT, commented:
“We continue to generate strong earnings growth in the international tobacco business, led by our cost optimization initiatives. This, along with higher royalty revenues in the pharmaceutical business, drove the Group’s adjusted operating profit growth at constant FX.
“The continuing cigarette industry volume decline puts further pressure on our Japanese tobacco business, resulting in adjustments to our forecast. In the meantime, our tobacco vapor product, Ploom TECH, continues to be well received by consumers. We are increasing the production capacity as we prepare to expand our sales areas nationwide in the first half of 2018.
“In the international tobacco business, we are delivering our strategic initiatives with the acquisitions in Indonesia and the Philippines which expand our geographic reach. At the same time, we’ve also been investing in emerging products.
“In a challenging industry environment, we commit to achieving sustainable profit growth by executing these on-going initiatives.”