Japan Tobacco Inc. (JT) has released its third quarter results for 2022, with a 19.3 per cent increase in revenue to JPY 741.7 billion (USD 5.03 billion) compared to the same quarter the previous year, according to a company press release.

Revenue for the third quarter increased by 19.3 per cent to JPY 741.7 billion (USD 5.03 billion), driven by increases across all businesses. At constant FX, core revenue increased by 4.7 per cent to JPY 623.8 billion (USD 4.23 billion). Revenue for the year to date, increased by 13.7 per cent to JPY 2,008.5 billion (USD 13.61 billion), driven by increases across all businesses. At constant FX, core revenue increased by 4.1 per cent to JPY 1,765.8 billion (USD 11.97 billion).
For Q3, at constant FX, the adjusted operating profit increased by 3.8 per cent to JPY 191.7 billion (USD 1.3 billion), driven by an increase in the tobacco business, partially offset by decreases in the pharmaceutical and processed food businesses. On a reported basis, adjusted operating profit increased by 20.7 per cent to JPY 223 billion (USD 1.51 billion), driven by positive currency movements from a weaker Japanese yen.
Operating profit increased by 23.8 per cent to JPY 196.4 billion (USD 1.33 billion), driven by an increase in adjusted operating profit. Profit increased by 23 per cent to JPY 139.7 (USD 946.8 million).
Masamichi Terabatake, President and Chief Executive Officer of the JT Group, said: “In the nine-month results, the JT Group delivered a strong performance, mainly driven by robust pricing in the tobacco business. We are also encouraged by the Ploom X volume and share performance in Japan. We have launched Ploom X in the UK starting in London. We will accelerate Ploom X launches internationally from 2023.
“Also, we have entered into a joint venture with Altria Group to market and commercialize HTS (heated tobacco sticks) products in the U.S. and signed a long-term, non-binding global memorandum of understanding to explore commercial opportunities for a wide range of potentially reduced-risk products. I strongly believe that this cooperation will increase the global harm reduction possibilities for adult consumers, and drive incremental value for JT and Altria.
“We have revised our 2022 full year guidance upwards, driven by business momentum as well as favourable currency movements against the Japanese yen. Following the upward revisions of our guidance, we are pleased to share our plan to increase our annual dividend guidance by JPY 38 to JPY 188.”
Regarding the situation in Russia, Terabatake said that while the company continued to manufacture and distribute its products, the operating environment remains very challenging and that the JT Group would continue to take necessary decisions to address the changing situation.