JT's Share Slightly up on Reduced Volumes

Source from:  tr.itsmyiq.com Feb 8, 2008 02/13/2008

Japan Tobacco Inc's domestic cigarette sales during the nine months to the end of December, at 129.5 billion, were down by 4.5 per cent on those of the nine months to the end of 2006, but the company's market share, at 64.9 per cent was said to have been increased 'slightly'. Net sales for the domestic tobacco business, at ¥2,594.8 billion, were down by 1.1 per cent, while operating income, at ¥182.1 billion, was down by 7.4 per cent. JT's president and CEO, Hiroshi Kimura, said he was pleased that Mild Seven had continued to deliver a strong performance, an achievement that would contribute to increasing overall market share in Japan throughout the fiscal year. "Meanwhile, our international tobacco business has seen organic top-line growth due largely to robust sales of Winston and Camel, and a strengthened and well-balanced brand portfolio achieved through the integration of Gallaher," he said. For its nine months to the end of September, the international tobacco business' total sales volume, at 274.0 billion, was up by 53.8 per cent, while sales of Global Flagship Brands (GFB) were increased by 35.9 per cent to 145.9 billion. The GFB sales increase was said to have been led by increased sales of Winston in Russia, Ukraine, Spain and Turkey; and by Camel in Spain, France, Italy and Russia. It was helped also by contributions from Benson & Hedges and Silk Cut in the UK and Ireland; and by LD, Sobranie and Glamour in Russia, Ukraine and Kazakhstan. Net sales for the international business grew by 145.9 per cent to ¥1,825.3 billion, while operating income grew by 145.5 per cent to ¥174.0 billion. Preliminary results for the international tobacco business' full year to the end of December indicated that total volume sales were up by 60.6 per cent to 385.6 billion, while GFB sales were up by 39.9 per cent to 203.2 billion. JT's consolidated net sales for the nine months to the end of December were increased by 29.3 per cent to ¥4,704.2 billion, while its operating income was up by 34.1 per cent to ¥366.7 billion, and its net income was up by 14.7 per cent to ¥221.8 billion. Enditem