Post Tax-Hike Sales Almost Halve at JT

Source from:  Tobacco Reporter 01/30/2011

Japan Tobacco Inc's domestic cigarette volumes during the three months to the end of December, at 20.3 billion, were down by 47.7 per cent on those of the three months to the end of December 2009. Volume sales for the nine months to the end of December, meanwhile, were down by 9.0 per cent to 106.8 billion. The Japanese cigarette market was thrown into chaos last year in the run-up to an unprecedented tax increase on October 1, which, together with a manufacturer's increase by JT, raised the retail prices of some brands by 40 per cent. In September, total market cigarette sales, at 37.4 billion, were up by 88 per cent on those of September 2009, due to a last-minute rush ahead of the excise increase. But sales were said to be down by 70 per cent in October and one estimate had it that sales this year could be down by 17 per cent to 180 billion. The value of JT's domestic cigarette sales during the three months to the end of December, at ￥413.3 billion, was down by 28.5 per cent on that of the three months to the end of 2009. Comparing the nine months periods, the value of JT's sales was down by 2.7 per cent to ￥1,701.9 billion. JT reported, too, that its market share during the nine months to the end of December, at 64.4 per cent, was down from 64.9 per cent during the April-December period of 2009. JT's consolidated financial results for the nine months to the end of December 2010 are due to be announced on February 7. Enditem