Highlights
2017 second quarter results (April-June)
• Adjusted operating profit at constant FX grew 16.7%, driven by cost optimization. On a reported basis, adjusted operating profit increased 7.2% due to currency fluctuations.
• Core revenue decreased 0.6% at constant FX due to volume decline partially offset by price/mix gains. Reported core revenue decreased 2.1% due to currency fluctuations.
• Total shipment volume declined 3.6% primarily due to industry volume contraction in the CIS+ cluster and several markets in the Rest-of-the-World cluster.
• GFB shipment volume increased 0.5% driven by the strong performance of Winston, Mevius and Camel.
• Year-on-year market share3 increased in the key markets of France, Italy, Spain and Taiwan. In Russia, GFB market share continued to grow driven by Winston.
3 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 June 2017. Canada, Germany, Greece, Kazakhstan and Switzerland are on a 12-month rolling average at the end of May 2017. 12-month share of market growth for May 2017 markets is calculated against a 12-month share of market at the end of June 2016.