The tobacco company Japan Tobacco (JT) expects a further decline in its net profit in 2019 after a mixed year, between decline in demand in Japan and acquisitions abroad.
JAPAN TOBACCO ATTEMPTS TO COMPENSATE WITH OTHER PRODUCTS
In 2018, Japan Tobacco (JTI) recorded net income down 1,7% to 385,7 billion yen (some 3 billion euros at current prices), affected by higher financial expenses. In the fourth quarter alone, the decline was more pronounced (-9,7%), while the group suffered from " adverse currency fluctuations“, Especially in emerging markets.
Japan Tobacco is faced with a sluggish Japanese market, and only the numerous purchases it made in Ethiopia, Greece, Indonesia, Bangladesh and Russia enabled it to generate increased overall turnover last year. , 3,6% to 2.216 billion yen (17,7 billion euros).
In Japan, its cigarette sales fell 11,7%. JT is trying to offset the drop in demand by launching other products: the Ploom Tech, a heated and unburned tobacco product believed to be less toxic according to tobacco companies. This product is now available across Japan, and more models were launched in January.
« The introduction of this new category is taking longer than expected“, However stressed at the end of October Masamichi Terabatake, CEO of JT. " So we emphasize our efforts to communicate on the differences and advantages of the product Compared to traditional cigarettes, he said.
For calendar year 2019, Japan Tobacco expects revenue to decline 0,7% to 2.200 trillion yen (-0,7%), and net profit by 4,1% to 370 billion yen.
The tobacco company, which is also present in the food and pharmaceutical sector, has also announced a program to buy back part of its own shares for an amount of 50 billion yen. This type of transaction is generally very popular with shareholders and should therefore increase the share on Friday on the Tokyo Stock Exchange.
Source : AFP / AL - Zonebourse.com/
