Huge September Sales Drop Caused by 2010 Stocking

Source from:  Tobacco Reporter 10/18/2011

Japan Tobacco Inc's September cigarette sales, at 9.7 billion, were down by 60.4 per cent on those of September 2010. The fall had been expected because September 2010 sales had been inflated by consumers stocking up ahead of a massive - mainly tax-induced - price increase that came in on October 1 last year. September 2010 sales, at 24.6 billion, were increased by 91.6 per cent on those of September 2009. April-September sales, at 50.9 billion, were down by 41.2 per cent on those of April-September 2010, while April-September 2010 sales, at 86.5 billion, were up by 10.1 per cent on those of September 2009. Again, these figures have to be seen in context since it was only on August 1 that JT was able to lift the last of the purchase order ceilings it imposed on its products following the manufacturing and distribution disruption it suffered after the March 11 earthquake and tsunami. JT was forced to introduce a series of measures that initially halted distribution of its products and then gradually lifted those restrictions as its manufacturing and distribution operations recovered. The purchase ceilings on the last 16 of its 73 products were lifted on August 1. JT's market share was 50.9 per cent in April-September and 57.8 per cent in September, as against 64.1 per cent for the year ended March 31, 2011. The value of JT's cigarette sales during September, at ¥53.8 billion, was down by 46.1 per cent on the value of sales during September 2010, which, at ¥99.8 billion, was up by 91.6 per cent on that of September 2009. The value of cigarette sales during April-September, at ¥279.4 billion, was down by 20.4 per cent on the value of sales during April-September 2010, which, at ¥350.8 billion, was up by 10 per cent on that of April-September 2009. Enditem