Results for FY2016 Second Quarter
All businesses in the group delivered steady top line growth in the initial six-month period, leading to solid adjusted operating profit growth excluding currency effects.
Revenue and adjusted operating profit declined 1.7% and 3.2% respectively due to unfavorable currency movements in the international tobacco business. Operating profit grew 15.5% as a result of gains from the sale of real estate assets in the first quarter. Profit attributable to owners of the parent increased 16.8%.
Adjusted operating profit at constant currency grew 14.3% mainly led by strong results in the international tobacco business.
International Tobacco Business: Total and GFB shipment volumes increased 4.4% and 6.7% respectively, driven by continued market share momentum and acquisitions. In US Dollars, adjusted operating profit at constant currency grew 17.7% driven by volume growth and robust pricing while investments were accelerated. On a reported basis, adjusted operating profit declined 2.3% due to adverse currency movements against the US Dollar. Adjusted operating profit in Japanese Yen declined 9.3% due to the appreciation of the currency against the US Dollar.
Japanese Domestic Tobacco Business: Adjusted operating profit grew 3.0% mainly driven by the retail price amendment of certain products including Mevius and the contribution of Natural American Spirit. The profit growth was also supported by the effects of the measures to strengthen the competitiveness of the Japanese domestic tobacco business.