Japan Tobacco International (JTI) shipped more cigarettes last year but adjusted operating profit fell 5 per cent to USD 3.1 billion (EUR 2.9 billion) due “unfavourable” movements in foreign-exchange rates, said parent company Japan Tobacco.

Cigarette shipments rose 1.2 per cent to 398.7 billion sticks, helped by the acquisition of foreign distribution rights for American Spirit and despite problems in Russia. Global flagship brands represented 283.7 billion sticks of the total; a 3.7 per cent increase.
Shipment volume in countries carved out of the former Soviet Union plummeted 7.3 per cent, representing about 11 billion sticks, in the wake of stiff price increases. However those price increases boosted revenue from the region by 3 per cent, JTI said.
Full-year sales rose 1.5 per cent to USD 10.5 billion, despite a 3.5 per cent decline in the final business quarter. Operating profit without currency movements would have gained 13.4 per cent in 2016, JTI said.