JTI Reports International Tobacco Business Results for January-December 2008

Tokyo, February 9, 2009 -- Japan Tobacco Inc. (JT) (TSE: 2914) today announced its international tobacco business results for the twelve-month period between January 1, 2008 and December 31, 2008.  

(1) International Tobacco Business’ Top-Line Performance

In the full year ended December 31, 2008, Japan Tobacco International (JTI), JT’s international tobacco business operations, increased its sales volume by 17.3 percent to 452.3 billion cigarettes compared to the previous year.  Gallaher results have been incorporated as of April 18, 2007.  

Global Flagship Brands (GFB)

GFB sales volume increased 20.8 percent to 245.5 billion cigarettes compared to the previous year.  
 
Total sales volume for Winston grew by 13.8 percent due to robust sales mainly in Russia, Turkey, Ukraine, Spain, France, Italy and the Near East.  
 
Total sales volume for Camel rose 10.3 percent, supported by strong sales in Italy, Russia and Spain; and total sales volume for Mild Seven increased 11.4 percent during the period with gains in Korea, Taiwan, Russia and Malaysia.  
 
GFB performance also reflected the additional contribution of Benson & Hedges and Silk Cut in the United Kingdom and Ireland; and LD, Sobranie and Glamour in Russia, Kazakhstan and Ukraine.

Net Sales Excluding Tax

Net sales excluding tax amounted to US$10.652billion, an increase of 32.7 percent from the previous year.  Net sales per thousand cigarettes, excluding tax, rose to US$23.6, up 13.1 percent.

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