Tokyo, April 30, 2021
2021 First Quarter Results
Year-to-Date Highlights (vs. 2020)
- Revenue increased by 5.3% to JPY 547.4 billion.
- Consolidated adjusted operating profit at constant currency increased by 27.2% to JPY 186.9 billion.
- On a reported basis, adjusted operating profit increased by 21.3% to JPY 178.1 billion.
- Operating profit increased by 24.2% to JPY 160.1 billion.
- Profit attributable to owners of the parent company increased by 31.7% to JPY 113.8 billion.
Please refer to 'Data Sheets' on page 10 for more financial figures.
Masamichi Terabatake, President and Chief Executive Officer of the JT Group, said:
"JT Group maintained a strong momentum in the tobacco business mainly fueled by continued market share gains in combustibles in many markets. Furthermore, temporary and favorable industry volume trends in some mature markets resulted in a robust first quarter.
"As announced in February, we are focusing our management resources on heated tobacco sticks and are currently preparing the launch of Ploom X, our next generation device in this category, in the second half of this year. Additionally, we are making steady progress as planned in developing a blueprint of our new operating model and organizational structure for a combined tobacco business from 2022.
"With our robust first quarter performance, we aim to achieve our full year forecast. However, we cannot ignore the uncertainties that the COVID-19 pandemic poses, so we will continue to closely monitor the changing operating environment."
Investors' Meeting
An investors' meeting (phone conference) with members of the investor community will be held on April 30, 2021 at 5:00pm Tokyo time. An on-demand audio recording of this conference will be available on our website (https://www.jt.com/investors/results/presentation_financial ). For detailed information on the consolidated financial results, please visit the Company's website. ( https://www.jt.com/investors/).
Note on Hyperinflationary Adjustments
In accordance with the requirements stipulated in IAS 29, the JT Group has applied hyperinflationary accounting adjustments to the results for fiscal year 2021 on a reported basis since Q3 2020. Starting from Q1 2021, results on a constant FX basis have been calculated to exclude amounts of revenue and profit that have increased due to hyperinflation in certain markets.
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2021 Q1 Financial Results
Consolidated Results | |||
(billions of JPY) | 2020 Q1 | 2021 Q1 | Variance |
Revenue | 519.6 | 547.4 | +5.3% |
Adjusted operating profit | 146.9 | 178.1 | +21.3% |
Operating profit | 129.0 | 160.1 | +24.2% |
Profit attributable to owners of the parent | 86.4 | 113.8 | +31.7% |
company | |||
Adjusted operating profit at constant FX | 146.9 | 186.9 | +27.2% |
2021 Q1
-
Revenue
Revenue increased by 5.3% to JPY 547.4 billion driven by an increase in revenue in the international tobacco business, partially offset by a decline in revenue in the Japanese-domestic tobacco, pharmaceutical and processed food businesses. - Adjusted operating profit
At constant currency, adjusted operating profit increased by 27.2% to JPY 186.9 billion driven by increases in the international tobacco and Japanese-domestic tobacco businesses, partially offset by decreases in the pharmaceutical and processed food businesses.
On a reported basis, adjusted operating profit increased by 21.3% to JPY 178.1 billion despite negative foreign currency impacts in the international tobacco business.
- Operating profit
Operating profit increased by 24.2% to JPY 160.1 billion due to the increase in adjusted operating profit. - Profit attributable to owners of the parent company
Profit attributable to owners of the parent company increased by 31.7% to JPY 113.8 billion due to factors that include increases in operating profit and improved financing costs.
In accordance with the requirements stipulated in IAS 29, the JT Group has applied hyperinflationary accounting adjustments to the results for fiscal year 2021 on a reported basis since Q3 2020. Starting from Q1 2021, results on a constant FX basis have been calculated to exclude amounts of revenue and profit that have increased due to hyperinflation in certain markets.
2
Results by Business Segment | ||||
International Tobacco Business | ||||
(billions of units, billions of JPY) | 2020 Q1 | 2021 Q1 | Variance | |
Total shipment volume | 104.1 | 110.2 | +5.8% | |
GFB shipment volume | 67.5 | 73.7 | +9.1% | |
Core revenue1 | 312.0 | 349.0 | +11.8% | |
Adjusted operating profit1 | 104.1 | 133.6 | +28.4% | |
Reference(millions of USD) | ||||
Core revenue1 | 2,866 | 3,284 | +14.6% | |
(+14.0%)* | ||||
Adjusted operating profit1 | 956 | 1,258 | +31.6% | |
(+36.9%)* |
*at constant FX
2021 Q1
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Volume and Market share2
Excluding inventory movements, total shipment volume increased by 5.2%, mainly driven by market share gains and stronger domestic volume in Taiwan and the UK due to travel restrictions. Quarterly market share gains continued across many geographies, notably Austria, Canada, the Czech Republic, France, Germany, Hungary, Italy, Kazakhstan, the Philippines, Poland, Romania, Russia, Spain, Taiwan, Turkey, the UK and Ukraine. Factoring in favorable inventory adjustments, total and GFB shipment volumes grew by 5.8% and 9.1% respectively, fueled by Winston (+9.4%), Camel (+11.4%), LD (+7.9%) and Mevius (+1.2%). - Core revenue and adjusted operating profit1
Core revenue and adjusted operating profit increased by 11.8% and 28.4%, respectively, driven by positive volume and price/mix contributions, partially offset by currency headwinds.
On a USD basis, core revenue at constant currency increased by 14.0%, driven by a favorable volume contribution of USD 214 million and a positive price/mix variance of USD 187 million, notably from Germany, Iran, Jordan, Kazakhstan, the Philippines, Russia and Ukraine. At constant currency, adjusted operating profit grew by 36.9%, driven by a positive volume contribution of USD 148 million and a favorable price/mix variance of USD 182 million, while investments to support the RRP expansion of heated tobacco sticks continued. On a reported basis, core revenue and adjusted operating profit increased by 14.6% and 31.6%, respectively.
3
International Tobacco Business (Quarterly) Performance Review by Cluster
South and West Europe
(billions of units, millions of USD) | 2020 Q1 | 2021 Q1 | Variance |
Total shipment volume | 17.7 | 18.1 | +2.0% |
GFB shipment volume | 14.7 | 15.4 | +4.8% |
Core revenue | 546 | 593 | +8.6% |
(-0.5%)* | |||
*at constant FX
-
Volume and market share2
Solid quarterly market share gains drove a 5.6% increase in total shipment volume excluding inventory movements. Accounting for unfavorable inventory movements, total and GFB shipment volumes increased by 2.0% and 4.8% respectively, led by Winston (+10.5%). Market share increased in Belgium, France, Greece, Italy, Luxembourg, the Netherlands, Spain and Switzerland. - Core revenue
Core revenue increased by 8.6%, driven by favorable currency movements of USD 50 million and a positive volume contribution of USD 3 million, partially offset by an unfavorable price/mix variance of USD 5 million. Excluding currency movements, core revenue declined by 0.5%. - By market2
In France, excluding inventory movements, total shipment volume grew by 14.3%, driven by solid quarterly market share gains (+3.6ppt). Factoring in favorable inventory adjustments, total, cigarette and fine cut shipment volumes increased by 16.6%, 16.8% and 15.8% respectively. Currency-neutral core revenue grew, driven by a favorable volume contribution that more than offset a negative price/mix variance. Market share increased by 3.4ppt to 27.7%, fueled by Winston and Camel.
In Italy, in a declining industry volume, total shipment volume excluding inventory movements increased by 1.8% driven by quarterly market share gains (+0.9ppt). Accounting for unfavorable inventory adjustments, total and cigarette shipment volumes declined by 6.0% and 7.4% respectively, while fine cut shipment volume grew by 4.0%. Currency-neutral core revenue declined as the positive price/mix contribution was more than offset by negative volume. Market share increased by 1.2ppt to 25.8%, led by Winston.
In Spain, in a double-digit declining industry volume due to travel restrictions, solid quarterly market share gains (+1.5ppt) resulted in total shipment volume, excluding inventory movements, decreasing only by 1.2%. Accounting for unfavorable inventory adjustments, total and cigarette shipment volumes declined by 8.8% and 11.6%, respectively, while fine cut shipment volume increased by 2.4%. Currency-neutral core revenue decreased, due to unfavorable volume and price/mix contributions. Market share increased by 1.1ppt to 26.9%, led by Winston and Camel.
4
North and Central Europe | |||
(billions of units, millions of USD) | 2020 Q1 | 2021 Q1 | Variance |
Total shipment volume | 14.2 | 15.8 | +11.6% |
GFB shipment volume | 7.4 | 8.7 | +18.1% |
Core revenue | 547 | 671 | +22.6% |
(+13.3%)* | |||
*at constant FX
-
Volume and market share2
Total shipment volume increased by 11.6%, driven by strong quarterly market share gains and favorable industry volume trends due to the COVID environment, notably in Germany, Poland and the UK. GFB shipment volume grew by 18.1%, driven by Winston (+26.6%), Camel (+12.0%) and LD (+2.6%). Market share grew in Austria, the Czech Republic, Germany, Hungary, Ireland, Poland, Sweden and the UK. - Core revenue
Core revenue grew by 22.6%, driven by a favorable volume contribution of USD 63 million and a positive price/mix variance of USD 9 million. Excluding favorable currency movements of USD 51 million, core revenue increased by 13.3%. - By market2
In Germany, total, cigarette and fine cut shipment volumes increased by 13.7%, 18.9% and 10.3%, respectively, driven by quarterly market share gains (+0.8ppt). Currency-neutral core revenue grew, driven by positive volume and price/mix contributions. Market share increased by 0.7ppt to 9.2%, driven by Winston.
In the UK, total shipment volume increased by 9.4%, driven by quarterly market share gains (+0.6ppt) and improved industry volume trends related to travel restrictions. Fine cut shipment volume grew by 22.1%, while cigarette shipment volume declined by 2.3%. Currency-neutral core revenue increased, driven by a favorable volume contribution that more than offset the negative price/mix variance. Market share increased 0.9ppt to 44.8%, driven by B&H Blue in cigarettes and by Amber Leaf and Sterling in fine cut.
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Japan Tobacco Inc. published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 06:03:08 UTC.