JT has published its second quarter results for 2020, with a 2.7 per cent decrease in revenue to JPY 1,032.2 billion (USD 9.74 billion) compared to the previous year, the company said.

Adjusted operating profit at constant currency increased 7.5 per cent to JPY 309.3 billion (USD 2.9 billion), whereas revenue for the second quarter decreased by 7.7 per cent to JPY 510.6 billion (USD 4.8 billion) due to revenue declines in the Japanese-domestic tobacco and processed food businesses, which were impacted by the restrictions on non-essential outings during the declaration of a state of emergency, and the pharmaceutical business. According to JT, in the international tobacco business, its robust momentum could not completely offset the negative impacts of both COVID-19 and foreign currencies.
The effects of COVID-19 were most prevalent from April to June 2020 and are estimated to have
had a negative impact of about JPY 35 billion (USD 330.2 million) which amounts to over 3 per cent. According to JT, operating profit decreased by 19.1 per cent to JPY 252 billion (USD 2.4 billion) compared to 2019 and profit attributable to owners of the parent company decreased 23.8 per cent to JPY 172.5 billion (USD 1.6 billion).
JT also revised its forecast for 2020, taking into account the performance in the first half of 2020, COVID-19 effects and revised assumptions of foreign currencies. The adjusted operating profit at constant currency is revised downward by JPY 7 billion (USD 66 million), forecasts for adjusted operating profit on a reported basis are revised down by JPY 46 billion (USD 433.9 million), operating profit is revised down by JPY 49 billion (USD 462.2 million) and profit attributable to owners of the parent is revised down by JPY 19 billion (USD 179.2 million).
Masamichi Terabatake, President and Chief Executive Officer of the JT Group, said: “Although the tobacco industry was not immune to the impact of the pandemic, our performance was resilient
during the first half of 2020. JT Group maintained solid business momentum and delivered robust growth in adjusted operating profit at constant currency driven by pricing gains in the international tobacco business. “We have revised our forecasts based on reasonable assumption to date considering the current momentum, business environment and widening impact of currency volatility among other aspects. We believe that our solid business momentum will continue, despite of the COVID-19 challenges on our top-line.”