Japan Tobacco Inc's volume cigarette sales during the nine months to the end of December, at 106.8 billion, were down by 9.0 per cent on those of the nine months to the end of December 2009.
Most of the decline was due to an unprecedented tax-led price increase at the start of October, but the situation is not as bad as had been feared.
"While our domestic tobacco business is affected by a significant reduction in demand following the introduction of the October excise increase, latest sales volume trends are steadier than expected," said president and CEO, Hiroshi Kimura, presenting the company's consolidated results.
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This is just as well. While sales increased by 27.9 per cent during the second quarter, ahead of the price increases, they fell by 47.7 per cent during the third quarter.
Meanwhile, JT's all brands' market share during the nine months to the end of December, at 64.4 per cent, was down by 0.5 of a percentage point on that of the nine months to the end of December 2009, and its key brands' market share, at 44.9 per cent, was down by 0.2 of a percentage point.
Adjusted net sales excluding tax and EBITDA decreased by 2.6 per cent to ¥464.1 billion and by 7.0 per cent to ¥185.1 billion respectively.
Overall, JT's adjusted net sales excluding tax, at ¥1,487.6 billion, and EBITDA , at ¥424.5 billion, were in line with those of the nine months to the end of December 2009 as growth in the company's international tobacco business offset sales declines at home.
Operating income and net income increased by 4.8 per cent and 11.8 per cent respectively, reflecting the increased sales in the international tobacco business and lower depreciation and amortization costs in the Japanese domestic tobacco business.
But volumes were down, too, in respect of the international business. During the nine months from January to September 2010, total shipment volumes for Japan Tobacco International (JTI), at 319.5 billion, were down by 1.5 per cent on those of the January-September 2009 period, 325.6 billion, though shipment volumes for the company's global flagship brands, at 185.1 billion, were up by 1.5 per cent from 182.4 billion.
JTI's market share was said during January-September 2010 to have continued to grow in the company's key markets of Turkey, Italy, France and Russia.
JTI reported separately its full year figures for the year to the end of December, and here, too, volume shipments were down. Shipments during the 12 months to the end of 2010, at 428.4 billion, were down by 1.5 per cent on those of January-December 2009, though shipments of GFB brands, at 249.8 billion, were up by 2.7 per cent.
Growth in the Middle East, Turkey and France was said to have been offset by industry contraction in Russia, Ukraine, Spain and Romania.
Strong pricing drove core net sales excluding tax to increase by 5.6 per cent from US$9,682 million to US$10,223 million.
Core net sales excluding tax per thousand cigarettes increased by 7.0 per cent from US$22.5 to US$24.0.
Full year EBITDA increased by 10.6 per cent from US$2,965 million to US$3,281 million. Enditem
