Japan Tobacco (JT), a tobacco company, posted higher earnings in the first quarter of 2019 despite lower revenues, helped by exceptional items.
NET INCOME UP 16,2% FOR TOBACCO GIANT
The cigarette maker Japan Tobacco (JT) posted higher earnings in the first quarter of 2019 despite declining revenues, helped by one-offs. Over the period, it posted net income up 16,2% to 120,8 billion yen (1,1 billion Swiss francs), while its operating profit jumped 24,4%.
In a statement, JT attributes these good numbers to " a one-time gain on the end of exclusive licensing agreements for anti-HIV treatments in the pharmaceutical division". This element, however, contributed to reducing sales, which was also affected by unfavorable currency fluctuations. In total, it fell 1,9% to 505,4 billion yen.
The decline would have been steeper without a series of acquisitions in Bangladesh, Greece and Russia, which raised the volume of cigarette deliveries abroad by 6,5%, notably thanks to the brands Winston, Camel and Mevius.
In Japan, where the number of smokers is declining sharply, Japan Tobacco has seen its sales (still in volume) fall by 8,3%. But the group says it has benefited from the launch of other products, after a late start. The Ploom Tech, an electronic cigarette that contains heated and unburned tobacco, believed to be less toxic according to tobacco companies, is now available throughout Japan, and other models were launched in January.
For the 2019 calendar year, Japan Tobacco, which is also present in food, expects its revenue to decline by 0,7%, to 2200 trillion yen, and net profit by 4,1%, to 370 billion yen.
Source : Zonebourse.com/
