Japan Tobacco Inc. (JT) has released its third quarter results for 2020, with a 2.5 per cent decrease in revenue to JPY 1,592.1 billion (USD 15.21 billion) compared to the previous year, according to a company press release.

Adjusted operating profit at constant currency increased 6.3 per cent to JPY 479.8 billion (USD 4.57 billion), whereas revenue for the third quarter decreased by 2.3 per cent to JPY 561.9 billion (USD 5.37 billion) due to revenue declines in the Japanese-domestic tobacco, processed food, and pharmaceutical businesses, while the international tobacco business was stable year-on-year.
According to JT, despite on-going COVID-19 disruptions, the total shipment volume increased by 1.6 per cent, mainly driven by continued market share gains and a better than expected industry volume from higher domestic consumption in several markets, more than offsetting travel restrictions negatively impacting Duty-Free and tourist destination markets. Excluding unfavourable inventory movements, the total shipment volume grew by 2.3 per cent.
The effects of COVID-19 are estimated to have had an unfavourable impact of about JPY 45 billion (USD 430 million), or about 3 per cent of the total consolidated revenue.
JT revised its revenue forecast for 2020 upward by JPY 60 billion (USD 573.3 million). The adjusted operating profit at constant currency is revised upward by JPY 30 billion (USD 286.7 million), forecasts for adjusted operating profit on a reported basis are revised up by JPY 26 billion (USD 248.4 million), operating profit is revised up by JPY 42 billion (USD 401.3 million) and profit attributable to owners of the parent is also revised up by JPY 24 billion (USD 229.3 million).
Masamichi Terabatake, President and Chief Executive Officer of the JT Group, said: “The COVID-19 pandemic is having a lasting impact on wider society across the globe and continues to pose many uncertainties.
“Our forecasts are revised upward following the strong year-to-date performance as well as efficient cost management while we continue to invest in high priority activities and we have confidence in achieving the revised forecast.
“Looking ahead, and taking into account the prevailing and highly uncertain environment, we will continue investments to offer products and services with agility, as we adapt to evolving ways of working and changing consumer needs.”