TOKYO, February 7, 2008 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today its consolidated financial results for the nine-month period that ended December 31, 2007.
1. Overview of the Consolidated Nine-Month Financial Results
JT’s domestic tobacco business has increased its market share slightly compared to the same period in the previous year. However, due to a decline in overall cigarette consumption, net sales decreased 1.1 percent, and operating income decreased 7.4 percent.
JT’s international tobacco business1, a driving force for profit growth for the JT Group, reported increases in net sales and operating income of 145.9 percent and 145.5 percent respectively, compared to the same period in the previous year. This was driven mainly by steady top-line growth in addition to the integration of the Gallaher business.
Consolidated net sales for JT increased 29.3 percent. Operating income and net income increased 34.1 percent and 13.92 percent respectively compared to the same period in the previous year, reflecting the strong growth momentum in the international tobacco business.
JT’s management has revised its net sales and earnings forecasts for the fiscal year ending March 31, 2008, which are expected to achieve double digit growth. Forecasted net sales for the full year was revised upward from ¥6.36 trillion to ¥6.41 trillion, and forecasted operating income grew from ¥405.0 billion to ¥422.0 billion, while net income was revised downward from ¥256.0 billion to ¥246.0 billion.
“I am pleased to announce that the Mild Seven brand has continued to deliver a strong performance, and this achievement will contribute to increasing our overall market share in Japan throughout the fiscal year,” said Hiroshi Kimura, President and CEO of JT. “Meanwhile our international tobacco business has seen organic top-line growth, due largely to robust sales of Winston and Camel, and a strengthened and well-balanced brand portfolio achieved through the integration of Gallaher.”