Japan Tobacco plans to raise its 12-month shareholder payout by nearly one third due to an unexpectedly resilient domestic market and international growth assisted by favourable foreign-exchange movements.

A dividend payment of JPY 5,000 (EUR 49.85) proposed for the end of the fiscal year on 31 March will raise the total payout for FY 2012 to JPY 9,000 compared with JPY 6,800 for the prior fiscal year, said Japan Tobacco. JT also raised fiscal year goals for sales and profit, saying net income will increase 30 per cent.   
 “We are revising upwards the full-year forecast given the stronger performance of the Japanese domestic and international tobacco businesses,” Hiroshi Kimura, president and chief executive officer, said in a 6 Feb statement that recapped company performance in the nine months through 31 Dec.
“The domestic tobacco business has been steadily recovering market share toward the 60 per cent target for March this year through initiatives to strengthen our competitiveness after the earthquake,” he said. “The international tobacco business delivered strong financial results despite the challenging ongoing environment.”
Domestic tobacco sales slumped less than expected through December, following the cigarette excise tax in October, 2010, and the March earthquake. Adjusted net sales dipped 4.2 per cent to JPY 444.8 billion but operating income gained 19.4 per cent to JPY 180.8 billion , in part due to lower promotional costs, the company said. Volume fell 24.3 per cent to 80.8 billion sticks.
Internationally, key-brand shipment volume in the nine months to 31 Dec rose 4.1 per cent to 192.7 billion units. Among the eight key brands are Winston, Camel, Mild Seven, Benson & Hedges and Silk Cut. Overall international shipment volume, including low-end local brands, was unchanged. Operating profit rose 9.2 per cent to JPY 156.2 billion on sales of JPY 682.3 billion. (ci)