Japan Tobacco International Reports Earnings Growth

Japan Tobacco International the third-largest tobacco company across the world has reported its financial results for nine months to October 1st, delivering solid performance of Global Flagship Brands in all key markets and subsequent revenue growth.

Highlights

Third Quarter (July-September)

• Net sales volume was up by 19.3% due to stronger pricing and increase in the shipments of global flagship brands.
• Net sales per 1000 cigarettes grew 12.5% at the constant exchange rates.
• Global flagship brands shipment volume went up by 5.8% following growth in Russia, Poland and Middle East countries.

Nine Months on 2011

• Net sales rose 12.8% due to GFB shipment volume increase and solid pricing.
• Core sales per 1000 cigarettes went up by 8.3% at constant exchange rates.
• GFB shipment volume increase added 4.1% with strong performance in Russia, Turkey and Middle East countries.

Year-on-year share of the market went up in all main markets, including Russia, Turkey, Spain, Italy, the UK and Taiwan.

3Q Performance per Cluster

CIS+: Global Flagship Brands sales volume demonstrated a solid growth of 5.6% mainly driven by sales increase in Russia, however total volume lost 4.4%. The growth in GFB didn’t manage to offset decrease in low-cost brands in Russia and continuous market fluctuations in Ukraine. Yet, market share rose in Russia.

South and West Europe: GFB sales volume went up by 2.4% and total volume grew 1.5% driven by sales growth in Italy, which offset declines in Spain. Market share grew in Italy, Spain and France.

North and Central Europe: GFB sales volume increase skyrocketed to 9.3% resulting from solid performance in Poland whereas total sales volume went up by 4.2%. The most market share growth was reported in the United Kingdom and Poland.

Rest-of-the-World: GFB sales volume added 8.0% and total sales volume was up by 6.0% resulting from the growth in the Middle East countries. Most market share growth was achieved in Turkey, Malaysia and Taiwan.

Global Flagship Brands (GFB):

Camel : Sales volume lost 2.0% resulting from market down-shifting in Western Europe.

Winston : Sales volume soared by 10.1% driven by excellent performance in Russia, Italy and Turkey.

Mild Seven: Sales volume went down by 5.2% as the result of temporary pricing difficulties in Korea.

Glamour : Sales volume skyrocketed by 14.6% with main growth in Russia and Poland.

Japan Tobacco Inc. is one of the largest tobacco products manufacturers in the world. Its brands are sold in more than 110 countries, including the company’s best-selling brands Winston, Camel, Glamour, Mild Seven and Monte Carlo.