Japan Tobacco's cigarette division saw core revenue rise 7.1 per cent at constant currency terms in the six months to end-June. – Bloomberg
LONDON: Japan Tobacco on Friday (Aug 2) reported a 7.1 per cent rise in first-half core revenue at is tobacco unit thanks to higher prices and market share gains, prompting the cigarette maker to raise its full-year guidance.
The maker of Benson & Hedges and Winston cigarettes said it now expects revenue at the unit to rise 5.1 per cent in constant currency terms over the full year, with adjusted operating profit also up 5.4 per cent.
Japan Tobacco's performance shows that cigarette makers can still make big profits by hiking prices and growing sales around the world, even as ever-stricter regulation and growing awareness of health risks drive falling smoking rates in some markets.
These trends, however, have prompted the company and its peers to develop alternative products, such as vapes, to protect revenue as their traditional businesses come under pressure.
By the numbers:
* Japan Tobacco's cigarette division saw core revenue rise 7.1 per cent at constant currency terms in the six months to end-June
* Adjusted operating profit rose 5.3 per cent
* Total volumes rose 2 per cent, with a 1.7 per cent rise in tobacco sales and a 25.5 per cent rise in sales of smoking alternatives
* Volume growth was driven by market share gains by key brands such as Camel and higher uptake of heated tobacco device Ploom in Japan. – Reuters
