2017 fourth quarter results (October-December)
Total shipment volume grew 6.3%, and grew 0.5% when excluding acquisitions in Indonesia and the Philippines as well as unfavorable inventory movements.
GFB shipment volume increased 2.5% driven mainly by Winston, Camel and LD.
Core revenue at constant FX grew 3.6% driven by acquisitions together with pricing and market share gains in several key markets. On a reported basis, core revenue increased 7.2%.
Adjusted operating profit decreased 24.9% at constant FX, and 16.4% on a reported basis, due to the impact of a non-recurring loss related to a key UK distributor going into administration. Excluding this, adjusted operating profit at constant FX increased 10.7% and 21.8% on a reported basis driven by cost optimization and price/mix gains.
Our tobacco infused vapor product3 Ploom TECH was introduced in Canada in December.
2017 full year results (January-December)
Excluding the impact of a non-recurring loss, adjusted operating profit at constant FX increased 9.9% and 7.7% on a reported basis, driven by cost optimization and price/mix gains. Otherwise adjusted operating profit grew 4.0% at constant FX and 1.4% on a reported basis.
GFB shipment volume grew 0.8% led by the strong performance of Winston, up 3.5%, and continued market share gains in both mature and emerging markets.
Total shipment volume was stable, down 0.1%, whereas, excluding acquisitions in Indonesia and the Philippines, it declined 2.1%.
Core revenue was resilient, declining 0.3% at constant FX, driven by acquisitions and continued market share gains. Favorable currency movements drove reported core revenue up 0.1%.
Year-on-year market share4 increased in the key markets of France, Spain, Russia and Taiwan.
Logic and Ploom, our brands in Reduced-Risk products5, are now present in 11 markets ex-Japan. […]