Revenue and adjusted operating profit showed steady growth of 1.3% and 3.0% respectively, driven by robust pricing in the International Tobacco Business and supported by depreciation of the Japanese Yen. Adjusted operating profit at constant FX increased 3.7%.
Profit attributable to owners of the parent declined 7.5%. This was mainly due to lower gains from real estate asset disposals, as well as a share of the expenses related to measures to strengthen the competitiveness of the Japanese Domestic Tobacco Business being accounted for during the reported quarter.
International Tobacco Business: Pricing continued to drive double-digit earnings growth, with an increase of 11.7% in adjusted operating profit in US Dollars at constant FX, coupled with 4.2% growth in core revenue. In Japanese Yen, core revenue and adjusted operating profit increased 7.6% and 10.4% respectively, due to the currency depreciation against the US Dollar.
Japanese Domestic Tobacco Business: Affected by the temporary slowdown following the April consumption tax (VAT) hike, total sales volume decreased 10.2%. Market share has steadily recovered from April, led by a number of initiatives focusing on further strengthening brand equity and aimed at retaining consumers.