JT suffers from dropped domestic shipments

Published on February 10th, 2016 00:00

Japan Tobacco revealed that its domestic shipment volumes during 2015, at 109.2 billion, dropped by 2.8% on that of 2014, 112.4 billion.

JT mentioned that its shipments had been impacted primarily by a drop in general industry volumes.

Key income for the maker of Camel cigarettes fell into by 1.2% to ¥642.2 billion but adjusted operating revenue was boosted by 6.4% to ¥254.1 billion.

Camel Open Cigarette Pack

In the meantime, Japan Tobacco International's total tobacco (like cigarettes, fine-cut, cigars, pipe tobacco and snus, but excluding water-pipe tobacco, emerging products and contract manufactured products) shipments during 2015, at 393.9 billion, dropped by 1.0% on that of 2014, 398.0 billion.

But JTI's Global flagship brand shipments were up by 4.3% from 262.2 billion to 273.6 billion.

JT noted that JTI's total volume drop was caused by industry contraction in Russia along with a risky operating atmosphere in the Middle East, partially balanced by good volume activities in the Benelux nations, Czech Republic, France, Germany, Iran, Italy and Turkey.

JTI's primary income came down by 0.5% to ¥1,252.5 billion, while adjusted operating revenue dropped by 11.8% to ¥394.4 billion.

"Our foreign sales have continued to be the income growth motor of the JT Group," said Mitsuomi Koizumi, leader and CEO of JT.

"Locally, our market share has stayed at steady point, maintained by advertising and sales strategies centering on Mevius and also the integration of the Caster and Cabin brands with Winston.

"Although we deal with a highly risky operating atmosphere, our goals continue to be the same. We will keep on investing in our industry with the goal of increasing future growth."