Results for January 1 – September 30, 2016
All businesses in the group delivered solid performance leading to 11.8% growth in adjusted operating profit at constant currency.
Revenue and adjusted operating profit declined 4.1% and 6.6% respectively due to unfavorable currency movements in the International tobacco business. Operating profit grew 8.5% as a result of higher gains from the sale of real estate assets in the first quarter. Profit attributable to owners of the parent grew 10.4%.
International Tobacco Business: Total and GFB shipment volumes increased 2.9% and 5.3% respectively, driven by market share gains, contributions from seeding markets and acquisitions, as well as favorable trade inventory adjustments mainly in the first quarter. In US Dollars, adjusted operating profit at constant currency grew 15.4%, reflecting positive volume, robust pricing and accelerated investments. On a reported basis, adjusted operating profit declined 3.3%, due to adverse currency movements against the US Dollar. Adjusted operating profit in Japanese Yen decreased 13.2% due to appreciation of the currency against the US Dollar.
Japanese Domestic Tobacco Business: Adjusted operating profit grew 0.7% mainly driven by the retail price amendment of Mevius and the contribution of Natural American Spirit, partly offset by increased sales promotions. The profit growth was also supported by the effects of the measures to strengthen the competitiveness of the Japanese domestic tobacco business.