The largest manufacturer of tobacco products in Russia, JTI Russia, recorded an improved financial performance in 2023, but growth slowed significantly compared to the previous year, reports Interfax.
Revenue increased by 11.4 per cent to RUB 480 billion (USD 5.09 billion), compared to RUB 430.8 billion in 2022, according to the company’s financial reports. In the previous year, revenue growth was 25.4 per cent. Net profit rose by 8.5 per cent to RUB 47.2 billion from RUB 43.5 billion in the previous year. In 2022, net profit increased by 50 per cent. Gross profit was RUB 103.9 billion in 2023 compared to RUB 94.6 billion in the previous year, and sales profit was RUB 57.8 billion compared to RUB 56.4 billion, according to the financial report.
JTI Russia produces tobacco products at its Petro LLC and J.T.I. Donskoi Tabak LLC factories, which are sold through a single distributor, TK Megapolis JSC. The company has branches in 25 Russian cities and separate divisions operating in a number of regions, the report said.
Japan Tobacco International owns its Russian subsidiary through JT International Germany GmbH. The company announced that it will cease new investments and marketing activities in Russia in spring 2022.