Japan Tobacco said it will ship more cigarettes than expected both at home and in international markets this fiscal year, although business slowed in the three-month reporting period ended 30 Sept

Total international shipments are projected 7 billion units higher at 437 billion cigarettes in the fiscal year ending 30 March, 2013. Key global brands, Winston, Camel, Mild Seven, Benson & Hedges, Silk cut, LD, Sobranie and Glamour, are expected to account for 4 billion units of the increased forecast, and total 268 billion units. JT today released statements on its international and domestic businesses.
In the three months to 30 Sept, total international shipment volume increased 0.7 per cent, including the impact of acquisitions of Haggar Cigarette & Tobacco Factory in Sudan last November and of Belgian RYO tobacco maker Gryson this past August. Increases in the two previous three months periods were higher, at 4.7 per cent in Jan-March and 2.8 per cent in April-June.
Increased shipments and higher prices were cited for a 4.6 per cent rise in international core revenue through nine months. Stripped of the impact of currency fluctuations, revenue rose 12.1 per cent in the nine months to 30 Sept, totaling USD 9.5 billion (EUR 7.4 billion) at constant currency.
Adjusted earnings before interest, depreciation, tax and amortization (Ebitda) now is forecast to rise 6.5 per cent in the fiscal year to USD 4.2 billion in the international business. Adjusted Ebitda on the domestic side is forecast to rise 2.8 per cent to JPY 269.5 billion (EUR 2.6 billion).
Shipments of the eight global brands rose 1.4 per cent, driven by demand in eastern Europe, notably Russia and Kazakhstan, and in Turkey.
Domestic sales volume for the fiscal year was revised up by 1 billion to 115.5 billion cigarettes. Adjusted Ebitda rose 24.4 per cent in the three months to 30 Sept due to higher sales volume and the absence of earthquake related costs, JT said. (ci)