Growth in revenue and profit, driven by top line growth in the tobacco businesses.
Full year forecast for adjusted EBITDA at constant rates of exchange revised upward, due to strong performance in the international tobacco business. The profit forecast remains unchanged amid unfavorable exchange rates.
Revenue and Adjusted EBITDA increased 6.0% and 15.1% respectively, due to strong pricing and higher total and GFB volumes in the international tobacco business as well as higher volume in the Japanese domestic tobacco business. Adjusted EBITDA at constant rates of exchange increased 23.4%. Profit attributable to owners of the parent increased 17.5%.
International Tobacco Business: An increase in core revenue and adjusted EBITDA of 6.6% and 9.6% respectively in US dollars contributed to another robust performance. This was due to strong pricing and total shipment volume growth driven by GFBs, despite unfavorable US dollar exchange rates of local currencies.
Japanese Domestic Tobacco Business: Core revenue and total sales volume increased 16.8% and 17.0% respectively in comparison to the prior fiscal year which was affected by the March 2011earthquake. This growth was driven by a number of product, packaging and sales initiatives to regain market share. Adjusted EBITDA grew 24.4%, due to the increase in sales volume and the absence of earthquake related costs. The Company’s initiatives aimed at strengthening brand equity partly offset this growth.