business

Japan Tobacco reports record sales

18 Comments

Japan Tobacco Inc on Monday revised down its net profit forecast for the current year due to restructuring costs but said it was confident of record sales as smokers continue to light up during the recession.

The company set its new forecast at 138 billion yen for the year ending March 31, down from the 160 billion yen projected earlier. It said the figure reflected extra costs incurred to "strengthen its business structure."

The downward revision was also due to growing taxes being paid by its affiliates, the company said.

Japan Tobacco also downgraded its sales forecast for the financial year to 6.83 trillion yen from its earlier estimate of 6.87 trillion yen, but said it would still mark a record for the company.

"Even in the midst of the recession and the foreign exchange fluctuations, our international tobacco business continues to be a growth engine," Japan Tobacco chief executive Hiroshi Kimura said.

Japan Tobacco in 2007 bought British rival Gallaher for $19 billion, the biggest ever overseas acquisition by a Japanese company.

The company said that its sales of Winston cigarettes jumped nearly 18% in the nine months ending in September, thanks to growth in Russia, Ukraine, Turkey and other markets.

Malaysia, South Korea and Taiwan meanwhile helped lift sales of Mild Seven cigarettes by 12.4%.

For the nine months to December, net profit plunged 40.3% to 131.4 billion yen, with operating profit down 10.1% at 329.7 billion yen.

The company said net profit declined on foreign exchange losses and extraordinary expenses including restructuring. However, its sales rose 13.6% to 5.35 trillion yen "due mainly to the strong performance of the international tobacco business as well as the consolidation of Gallaher," the company said.

© Wire reports

©2022 GPlusMedia Inc.

18 Comments
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Stess. Profiteering from stress.

I still can't believe that people smoke like they do here. Japan's other suicide method.

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It's a recession-proof business folks!

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shocker. JT reported the same for the porn industry recently, and the big year end porn parties were bashes of cash and bonuses. Time to start taxing the money makers.

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Disgusting.

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And, what percentage of this profit goes into cancer research or even care for cancer sufferers?

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I thought smoking was down...

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Headline should have read "Cancer increases and JT Laughs All the Way to the Bank"

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And they were crying poor and collecting petitions in the street opposing an increase in tobacco tax... They are definitely laughing all the way to the bank (and more donations to the LDP)

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This is great news!

If smoking can handle a recession where people are being laid off, smoking can handle bumping up the tax rate to be in line with other countries; ie about 800 yen per pack, please.

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As much as I would (and tried and failed) like to quit,Japan does not offer anything mores substantial than patches at the moment to those who are addicted.My brother has quit successfully by using some tablets sold over the counter.Smoking is a filthy habit,but if we all knew exactly how addictive it is,I don't think many of us would go near a cigarette.

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Osaka, you can quit. I did about 25 times. Been clean for 6-7 years. Coming down with acute adult asthma and being hospitalized really helped.

Get a body board and go to the ocean. Every time you feel like lighting up, get down and do 25 pushups. I am sure you can do it.

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It's $5~$6 apack i the U.S.

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the 25 pushups might kill me first..lol but yeah.I know I have to do it..when I was back in Oz for 2 weeks and everywhere was smoke-free,I quit and felt great..came back to japan and let myself down.I have to man up. :D

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Osakadaz, gambare.

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There's certainly a great deal of cash to be made from death. Why are cancer death sticks legal but marijuana illegal?? They both cause damage.

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Wanna quit? try the advice of Allen Carr. I am with him - its all in your mind. His advice works for any vice too - bad foods, alcohol, gambling.

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No need to go out killing whales; just turn everyone into cigarette rollers in those lame old whaling towns. Let's hear it for recession proof JT. If all those unemployed workers die of lung cancer it'll makr restructuring that much easier.

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Osakadaz great that you were able to quit for 2 weeks in Oz, all you need to do is to tell yourself that smoking is not an option when you return. For example next time you return from Oz change your morning routine (mine was coffee and a smoke, then a stop at the kiosk on the way to work). Yes there is physical addiction which you have to gut it out, but there is also behavioural patterns that have to be broken.

Anyway, sad to see that my quitting last August has not hurt JT's bottom line... I feel much better though.

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