Japan Tobacco Inc. (JT) has released its first quarter results for 2022, with a 6.2 per cent increase in revenue to JPY 581.5 billion (USD 4.5 billion) compared to the previous year, according to a company press release.

According to the press release, revenue increased by 6.2 per cent to JPY 581.5 billion (USD 4.5 billion) driven by increases across all businesses. Adjusted operating profit at constant currency increased 4.5 per cent to JPY 186.1 billion (USD 1.4 billion), whereas the company profit increased by 9.1 per cent to JPY 124.1 billion (USD 955 million) and free cash flow increased from JPY 27.8 billion (USD 214 million) to JPY 18.4 billion (USD 141 million).
The total volume increased by 1.2 per cent, driven by the EMA cluster, more than offsetting declines in Asia and Western Europe clusters. Volume in the combustibles and RRP categories grew by 1 per cent and 16 per cent, respectively. Total volume increased in several markets, most notably in Azerbaijan, Global Travel Retail 2, Indonesia, Iran, Morocco, Myanmar, Nigeria, Poland, and Spain. HTS drove the RRP volume increase, mainly in Japan where Ploom X continued to gain share.
Masamichi Terabatake, President and Chief Executive Officer of the JT Group, said of the ongoing war in the Ukraine: “We are deeply concerned to see the developments from the war in Ukraine, where many people are facing tragedy and devastation. I sincerely hope peace will return soon.
“We are working hand in hand with international and local aid organizations to establish relief programs and provide immediate help to those affected by the war. I would like to also recognize our colleagues from across the globe who have come together to show their personal support and help the affected people. To date we have committed around USD 5 million to humanitarian aid activities.
“As announced on March 10th, we suspended new investments and marketing activities in Russia. Given the challenging and unpredictable environment, the JT Group has continued to evaluate various options for its Russia business, including potentially transferring its ownership.”
“With regards to the first quarter performance, following the combination of the tobacco businesses this year, the JT Group delivered strong results with adjusted operating profit at constant FX increasing by 4.5%. However, several uncertainties remain, such as the changing operating environment in Russia, the rapidly evolving operational costs, and a very volatile inflation. Considering these factors, as of the first quarter, we have decided not to revise the full year guidance,” Terabatake said.