Adjusted net sales excluding tax increased by 10.4% to US$2,372 million (2009:US$2,148 million) driven by strong pricing in Russia, the United Kingdom and Turkey, as well as favorable currency exchange movements. At constant rates of exchange, adjusted net sales excluding tax increased 1.8% to US$ 2,185 million.
Market share continued to grow in most key markets including Russia, Italy, France and Turkey due to JTI's well balanced portfolio.
Total sales volume and GFB sales volume decreased by 6.8% to 94.1 billion cigarettes and 4.4% to 54.6 billion cigarettes respectively. The contraction of industry volumes in many markets resulted from higher unemployment and steep excise increases. The unstable operating environment in Iran since mid- 2009 also led to lower volumes.
Adjusted net sales per thousand cigarettes excluding tax increased by 18.6% to US$25.5. At constant rates of exchange, adjusted net sales per thousand cigarettes, excluding tax, increased by 9.2% to US$23.5.
South and West Europe: Total sales volume decreased 9.2% as a result of higher inventory in the same quarter last year and market contractions in Spain and Italy. Excluding these two markets total sales volume in this geographic cluster increased, driven by strong performance from Winston and Camel in France. Market share increased in Italy, France, Greece, Switzerland and the Netherlands.
North and Central Europe: Total sales volume increased 6.9% with the continued growth of Sterling in the United Kingdom and LD in Poland. GFB sales volume increased 16.2%. Market share grew in the United Kingdom, Ireland, Sweden, Germany and Poland.
CIS+: Total sales volume decreased 9.7% with significant market contraction in Russia since the second half of 2009 (-11% versus the same quarter last year). In Romania and Ukraine, sales volume decreased with severe market contraction resulting from excise-led price increases and the recession. GFB sales volume declined 5.3%. Market share increased in Russia, from 36.1% to 36.8%, and Kazakhstan.
Rest of the World: Total sales volume decreased 5.9%, due to the unstable operating environment in Iran since the second half of 2009 impacting growth elsewhere in this cluster including Canada and the Philippines. GFB sales volume declined 4.5%. Market share grew in Turkey, Malaysia, Korea and Canada.