Japan Tobacco International (JTI) combined cigarette and fine-cut shipment volume fell 5.8 per cent in the three months to 30 June as a sharp decline in Russia and surrounding countries overshadowed gains in Europe, the company said.

Volume in JTI’s CIS region, including Russia, fell 14.7 per cent to 43.2 billion cigarette- equivalent units while combined European volumes gained 4 per cent to 29 billion sticks. Volume in the rest of the world was nearly unchanged. Total JTI shipping volume was nearly 103 billion sticks. Within shipping volume, the decline in key brands (2.8 per cent to 67.7 billion units) was less pronounced, though also due in part to problems in Russia, JTI said.
Volume of fine-cut Camel rose 26.1 per cent in Europe. Overall, fine-cut volume rose 15.7 per cent, JTI said.
Adjusted operating profit rose 2 per cent to USD 1.2 billion on sales of USD 3.2 billion. Japan Tobacco, JTI’s parent company, said domestic tobacco sales fell 12.7 per cent and profit by 20.7 per cent after the government hiked the value-added tax at the onset of the reporting period in April.
“In Japan, after the temporary slowdown caused by the April VAT hike, Mevius is once again driving our growth in market share”, said JT Chief Executive Officer Mitsuomi Koizumi.