Results for FY2016 First Quarter
Revenue and adjusted operating profit increased, supported by top line growth in all businesses and a number of favorable one off factors.
Revenue increased 3.4% supported by top line growth in all businesses namely the international and Japanese domestic tobacco businesses, the pharmaceutical business and the processed food business, despite the negative impact of exchange rates.
Adjusted operating profit at constant currency grew 20.6% driven by the strong performance of each business and favorable one off factors in the tobacco businesses and the pharmaceutical business. On a reported basis, the growth rate in adjusted operating profit was 3.2% due to unfavorable currency movements against the US Dollar in the international tobacco business.
Operating profit grew 41.3% as a result of higher gains from the sale of real estate assets. Profit attributable to owners of the parent increased 38.4%.
International Tobacco Business: Total and GFB shipment volumes increased 7.1% and 10.7% respectively driven by continued market share momentum contributions from recent acquisitions and favorable one off factors. With volume growth and robust pricing, US dollars adjusted operating profit at constant currency grew 21.1%. Reported adjusted operating profit in Japanese Yen decreased 5.2%.
Japanese Domestic Tobacco Business: Adjusted operating profit grew 15.4% due to a one off increase in demand ahead of retail price amendment of certain products and a recent acquisition of Natural American Spirit as well as the effects of the measures to strengthen the competitiveness of the Japanese domestic tobacco business.