Japan Tobacco Inc. (JT) has released its fourth quarter and end-of-year results for 2022, with revenue increased by 14.3 per cent to JPY 2,657.8 billion (USD 20.08 billion), driven by increases across all businesses and favourable currencies, according to a company press release.

Revenue for the fourth quarter increased by 16.2 per cent to JPY 649.3 billion, driven by an increase in the tobacco and processed food businesses and favourable currencies. At constant FX, core revenue increased by 7.1 per cent to JPY 572.7 billion. For the full year, revenue increased by 14.3 per cent to JPY 2,657.8 billion, driven by increases across all businesses and favourable currencies. At constant FX, core revenue increased by 4.8 per cent to JPY 2,338.5 billion.
For Q4, at constant FX, adjusted operating profit increased by 29.2 per cent to JPY 87.2 billion, driven by increases in the tobacco and processed food businesses, partially offset by a decrease in the pharmaceutical business. On a reported basis, adjusted operating profit increased by 33.2 per cent to JPY 90.0 billion, driven by positive currency movements from a historically weaker Japanese yen.
Operating profit increased by 305.1 per cent to JPY 74.2 billion, driven by an increase in adjusted operating profit and a favourable comparison mainly from costs related to initiatives to strengthen competitiveness in the Japanese-domestic tobacco business in the previous year.
Profit for Q4 increased by JPY 39.2 billion to JPY 38.9 billion, driven by an increase in operating profit, partially offset by increasing financing costs. For the full year, profit increased by 30.8 per cent to JPY 442.7 billion, driven by an increase in operating profit, partially offset by increasing financing costs.
Masamichi Terabatake, President and Chief Executive Officer of the JT Group, said: “The JT Group reported another strong performance in 2022, driven by solid pricing and sustained market share gains in the tobacco business, overcoming the global challenges. We continued to make progress in the reduced-risk products (RRP) category, with Ploom X increasing share in the HTS (heated tobaccosticks) segment in Japan and the launch of Ploom X in London.”
“2022 marked the first year of the newly combined tobacco business structure, which has successfully strengthened our business fundamentals and capabilities through various initiatives. More is to come, especially regarding HTS – our RRP investment priority over the 2023-2025 Business Plan – with the acceleration of Ploom X market launches. This will support our 2028 ambition to reach break-even in the RRP category, by achieving a HTS segment share in the mid-teens across key HTS markets. During 2023, significant investments towards HTS will be necessary to establish the foundations for the JT Group’s future earnings growth,” he said.