Adjusted EBITDA at constant rates of exchange increased 15.1% driven by strong top line growth in the tobacco businesses, exceeding the “Business Plan 2012” target amid a challenging business environment. Revenue and adjusted EBITDA grew 4.2% and 7.8% respectively.
Profit attributable to owners of the parent increased 7.1%.
International Tobacco Business: achieved double-digit growth of core revenue and adjusted EBITDA at constant rates of exchange. Core revenue and adjusted EBITDA increased 5.4% and 9.1% respectively in US dollars on a reported basis, driven by robust pricing and total shipment volume growth of 2.5%. GFB shipment volume grew 4.8%.
Japanese Domestic Tobacco Business: increased total sales volume by 7.2% in comparison to the prior fiscal year which was affected by the March 2011 earthquake. This growth was driven by steady market share recovery through a number of product, packaging and sales initiatives, with underlying market share of 60.0% in both February and March 2013. Core revenue and adjusted EBITDA grew 6.9% and 7.3% respectively.
The Company’s Board is recommending a total dividend per share of ¥68, including a first halfyear dividend per share of ¥30. This amounts to a forecast dividend payout ratio of 37.6% for this fiscal year.
Adjusted EPS at constant rates of exchange increased by 27.3%, primarily due to strong business growth. The Company conducted a share buy-back of about ¥250 billion in response to the Japanese government’s secondary share offering of JT shares.
The Company has steadily conducted business investments for sustainable profit growth in the medium to long-term: the evolution of Mild Seven to Mevius with the long-term aim of becoming the number one global premium brand; the acquisitions of Gryson and Nakhla for the purpose of product and geographic expansion; and steady progress towards establishing profitability with the first-ever market launch of a JT original drug.