2017 first quarter results (January-March)
Core revenue at constant currency was stable as price/mix gains in several key markets offset the volume decline impact.
Adjusted operating profit at constant currency grew 1.5% driven by price/mix gains and cost optimization, while investments in emerging markets and emerging products continued.
On a reported basis, core revenue and adjusted operating profit declined 1.6% and 6.1%, respectively, due to currency fluctuations.
Total shipment volume declined 2.9% primarily due to industry volume contraction in three out of four clusters, market share loss due to competitor driven price discounting in CIS+ and unfavorable trade inventory adjustments versus the same period last year.
GFB shipment volume was stable but grew excluding inventory adjustments, driven by a strong performance momentum from Winston and Mevius. GFB mix in total shipment volume grew 1.7ppt to 72.0%.
Year-on-year market share1 increased in the key markets of France, Italy, Spain and Taiwan. GFB market share grew in most key markets, including Russia and the UK.
1 Source: IRI, Logista, Nielsen and JTI estimates on a 12-month rolling average, unless otherwise specified, for cigarettes and fine cut at the end of March 2017. Canada, Germany, Hungary, Kazakhstan, Spain and Switzerland are on a 12-month rolling average at the end of February 2017. 12-month share of market growth for February 2017 markets is calculated against a 12-month share of market at the end of March 2016.