Japan Tobacco Inc's volume cigarette sales during the six months to the end of September, at 86.5 billion, were increased by 10.1 per cent on those of the six months to the end of September 2009.
The company's adjusted net domestic tobacco business sales excluding tax increased by 10.2 per cent to ¥351.4 billion and EBITDA increased by 12.4 per cent to ¥150.1 billion.
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This growth, which was in line with forecasts, was driven by heightened demand, amounting to the equivalent of 1.1 months' sales volume, ahead of a huge excise increase that came into effect on October 1.
JT reported that good progress continued to be made with a range of product innovations and improvements. "In November 2010 the company will launch nationwide 'Pianissimo Super Slims Menthol One', which features flavoured threads inside filters for a stronger menthol sensation, combined with low odour and low-smoke technologies," it said.
"At the same time four 'Mild Seven' menthol products in redesigned round-corner packages will be launched, and to meet consumer demand, the company's innovative smokeless tobacco 'Zerostyle Mint', currently only available in Tokyo, will be launched in Kanagawa."
Meanwhile, JT reported that Japan Tobacco International's cigarette shipment volumes during the six months to the end of June, at 204.7 billion, were down by 5.2 per cent, and that the international business' GFB (global flagship brand) shipments, at 118.3 billion, were down by 2.5 per cent.
The fall in volumes was put down, in part, to an overall contraction of industry volumes in a number of markets.
However, market share continued to grow in most key markets including those of Russia, Italy, France, the UK and Turkey.
Declines during the three months to the end of June were said to have been more moderate than they were during the previous quarter.
The international business' core net sales excluding tax and EBITDA increased by 9.2 per cent to US$4,970 million and by 11.9 per cent to US$1,684 million respectively, driven by strong pricing and favourable foreign exchange rates. In Japanese Yen, core net sales excluding tax and EBITDA growth were 4.4 per cent and 6.9 per cent respectively, due to currency exchange movements.
In reporting its consolidated financial results, JT said that adjusted net sales excluding tax and net income increased by 4.9 per cent to ¥1,035.2 billion and by 24.0 per cent to ¥81.9 billion respectively, primarily as a result of heightened demand prior to the Japanese tobacco excise increase at the beginning of October, and strong pricing and favourable foreign exchange rates in the international tobacco business.
EBITDA and operating income increased by 9.7 per cent to ¥306.4 billion and by 21.5 per cent to ¥198.8 billion respectively.
"In a difficult operating environment, our international tobacco business once again achieved increases in both net sales and market share in most key markets," said Hiroshi Kimura, JT's president and CEO.
"In our domestic tobacco business, we forecast heightened sales volume ahead of the introduction of the 1 October unprecedented excise increase, accommodated the increase in demand smoothly and we will keep monitoring market developments closely.
"We will continue to meet consumer expectations across our businesses by focussing on product innovations and improvements to further strengthen brand equity."
In reporting its business results for the nine months to the end of September, JTI said that its total shipment volumes and GFB shipment volumes had increased by 4.8 per cent and 9.4 per cent respectively in the final quarter of the nine-month period.
"These strong quarterly increases resulted from growth and prior year trade inventory adjustments in the Middle East and Turkey, improved shipment volume in Russia and continued growth in Italy and France," the company said.
During January to September, volumes, at 319.5 billion, were down by 1.9 per cent, but GFB volumes were up by 1.5 per cent to 185.1 billion. Enditem
