Japan Tobacco Profit Rises 16%
Japan Tobacco Inc is a largest tobacco maker in Asia. Recently it announced about first-quarter profit rise by 16%. This is connected to cigarettes price increases and the weaker yen enhanced overseas income.
The company representatives told about pure income that was 98.1 billion yen for the 3 months (April, May June). It shows an increase from 84.5 billion yen from 2012.
Japan Tobacco that sells Winston, Camel and Glamour cigarette brands, gains profits as a weaker yen enhances the value of overseas revenue. In last fiscal year it comprised almost 48% of the company’s total.
After Shinzo Abe, Prime Minister of Japan, promoted monetary ease and introduced measures to stimulate the economy called Abenomics, the yen dropped by 12% against the dollar this year.
The company’s business rose overseas by 16% and accounts for 271 billion yen in the first quarter, Japan Tobacco has increased cigarettes prices in several countries including UK and Russia.
On the local market the tobacco company confronts a drop in demand for tobacco products connected with shrinking population. According to latest data, the number of smokers in Japan dropped by 21.1% during the past 3 years.
Company’s representatives said that sales in Japan have dropped by 0.1% to 173 billion yen in the first quarter.
Tobacco regulation laws forced Japan Tobacco to change top selling Mild Seven brand to Mevius. The laws phohibited to use on cigarettes packs such descriptive words as ’mild, light, full-flavor’.
Shares of Japan Tobacco company have gained 42% this year, while the broader Topix index rose by 34%
- Japan Tobacco Profit Jumps 83% on Revival from Earthquake
- BAT Nine-Month Cigarette Shipments Fall on Europe and Brazil
- Japan Tobacco quarterly profit jumps
- Cigarette maker Lorillard 2Q profit falls
- Imperial Tobacco Profit Gain Matches Estimates on Prices