Japan Tobacco International shipment volume grew 2.2 per cent in the second quarter as western Europeans turned to hand-rolled products and the Russian market tailspin continued, JTI said.

Fine-cut volume increased 9.6 per cent, driven by demand in France, Germany, Hungary, Italy and the United Kingdom, JTI said. Although volume in Russia and the former Soviet republics fell 7.2 per cent to 39.2 billion units, gains in all other JTI regions offset the decline. Volume outside of Europe and the former Soviet republics rose 13 per cent to 34.7 billion units. Total shipments in the three months to 30 June were 105.3 billion units.
Negative foreign exchange movements cut into reported operating profit, which declined 2.6 per cent in adjusted terms to USD 866 million (EUR 775 million). JTI said profit at constant currency would have shown a 14.3 per cent increase. Sales rose 2.9 per cent to USD 2.8 billion.
“Our international tobacco business continues to deliver strong volume growth led by (global flagship brands) and market share gains,” said Japan Tobacco Chief Executive Officer Mitsuomi Koizumi. Domestic tobacco volume dipped 0.7 per cent to 52.7 billion sticks in the six months to 30 June. JT tobacco unit domestic sales rose 2.1 per cent and adjusted operating profit 3 per cent.