Japan Tobacco has posted a 5.9% year-on-year increase in adjusted operating profit at constant FX to JPY336.6 billion (€2.78 billion) in the first half of its financial year.
The tobacco giant attributed the growth in the period, from January to June 2019, to gains in market share and pricing benefits across many markets in conventional tobacco products.
On a reported basis, adjusted operating profit decreased 9.4% year-on-year to JPY287.8 billion (€2.38 billion) due to unfavourable currency movements, the company said.
President and chief executive officer of the JT Group, Masamichi Terabatake, said that the results reconfirm the company's conviction that "these products will continue to be the platform of JT Group’s profitability and remain the major category of the industry".
'A Strong Start'
"In the RRP category, Ploom TECH+ has had a strong start in Japan since its nationwide rollout, and Ploom S is ready to launch across the country in August," he added.
"Internationally, we are gaining momentum with Logic Compact’s geographic expansion, already beyond our initial plan."
Profits
Profit attributable to owners of the parent company increased by 4.8% in the first half to JPY226.5 billion (€1.87 billion) from JPY216.1 billion (€1.79 billion) in 2018.
This was mainly driven by a one-time compensation gain in its pharmaceuticals business, the company said.
Forecast
"Our full-year forecast for consolidated adjusted operating profit at constant FX remains unchanged, driven by our continued focus to deliver profit growth as a Group," Terabatake said.
The company announced an interim dividend of JPY77 (€0.64) per share, as stated in its business plan for 2019.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
