[This is an English translation prepared for reference purpose only. Should there be any inconsistency between the translation and the original Japanese text, the latter shall prevail.]
May 9, 2024
Consolidated Financial Results
for the Three Months Ended March 31, 2024
Name of the Listed Company: JAPAN TOBACCO INC.(Stock Code: 2914)
Listed Stock Exchange: | Tokyo Stock Exchange |
URL: | https://www.jt.com/ |
Representative: | Masamichi Terabatake, Representative Director and President, |
Chief Executive Officer | |
Contact: | Hiromasa Furukawa, Senior Vice President, Chief Financial Officer and Corporate |
Communications | |
Telephone: | +81-3-6636-2914 |
Scheduled date to file Quarterly Securities Report: May 9, 2024
Scheduled starting date of the dividend payments: -
Drawing up supplementary documents on quarterly financial results: Yes
Holding quarterly investors' meeting: Yes (for analysts and institutional investors)
(Yen amounts are rounded to the nearest million, unless otherwise noted.)
1. Consolidated Financial Results for the Three Months of the Fiscal Year Ending
December 31, 2024 (from January 1, 2024 to March 31, 2024)
(1) Consolidated Operating Results (Cumulative) | (Percentages indicate year-on-year changes.) | |||||||
Revenue | Operating profit | Profit before income taxes | Profit for the period | |||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % |
March 31, 2024 | 740,333 | 11.3 | 215,818 | 4.6 | 201,266 | 9.9 | 157,766 | 8.6 |
March 31, 2023 | 665,278 | 14.4 | 206,404 | 15.7 | 183,146 | 4.8 | 145,226 | 16.6 |
Profit attributable to | Comprehensive income | |||||||
owners of the parent | Basic earnings per share | Diluted earnings per share | ||||||
for the period | ||||||||
company | ||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Yen | Yen | ||
March 31, 2024 | 157,266 | 8.7 | 339,015 | 99.1 | 88.58 | 88.57 | ||
March 31, 2023 | 144,684 | 16.6 | 170,311 | (26.1) | 81.52 | 81.49 |
(2) Consolidated Financial Position
Equity attributable to | Ratio of equity | Equity attributable to | |||
Total assets | Total equity | attributable to owners | |||
owners of the parent | of the parent company | owners of the parent | |||
company | to total assets | company per share | |||
As of | Millions of yen | Millions of yen | Millions of yen | % | Yen |
March 31, 2024 | 7,159,003 | 4,072,470 | 3,989,504 | 55.7 | 2,247.18 |
December 31, 2023 | 7,282,097 | 3,912,491 | 3,830,156 | 52.6 | 2,157.46 |
2. Cash Dividends
Annual dividends per share
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | ||
Year ended December 31, | Yen | Yen | Yen | Yen | Yen | |
- | 94.00 | - | 100.00 | 194.00 | ||
2023 | ||||||
Year ending December 31, | - | |||||
2024 | ||||||
Year ending December 31, | 97.00 | - | 97.00 | 194.00 | ||
2024 (Forecast) | ||||||
Note: | Revisions to the cash dividends forecasts most recently announced: None |
3. Consolidated Earnings Forecasts for the Fiscal Year Ending December 31, 2024 (January 1, 2024 to December 31, 2024)
(Percentages indicate year-on-year changes.) | |||||||||
Profit attributable to | Basic earnings | ||||||||
Revenue | Operating profit | owners of the parent | |||||||
per share | |||||||||
company | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Year ending | 3,016,000 | 6.2 | 648,000 | (3.6) | 455,000 | (5.7) | 256.29 | ||
December 31, 2024 | |||||||||
Note: | Revisions to the consolidated earnings forecasts most recently announced: None |
[Additional Information] Growth rate in adjusted operating profit at constant FX:
The Group has set its group-wide target for annual average growth rate in adjusted operating profit at constant FX, at mid to high single-digit over the mid- to long-term, and will continue to pursue this goal. The Group expects an annual average of mid-single digit growth during the period of the "Business Plan 2024" (fiscal year ending December 31, 2024 to fiscal year ending December 31, 2026), which was announced on February 13, 2024.
(Percentages indicate year-on-year changes.)
Adjusted operating profit at constant FX | |||||
Three months ended | Millions of yen | % | |||
230,992 | 3.4 | ||||
March 31, 2024 (Cumulative) | |||||
Year ending | 728,000 | (0.0) | |||
December 31, 2024 (Forecast) | |||||
Note: | Revisions to the consolidated | earnings forecasts most recently announced: | None |
The Group also discloses certain non-GAAP financial measures that are not required or defined under IFRS, which is the accounting standard the Company applies. These non-GAAP financial measures are used internally to manage each of the business operations to understand their underlying performance, in view of the Group's target for mid- to long-term sustainable growth, and the Group believes that these financial measures are useful information for users of the financial statements to assess the Group's performance. For details of these financial measures, please refer to "Proper use of earnings forecasts, and other special matters, (2)."
For detailed information on the consolidated financial results, please refer to the materials for investors' meeting that were released on the Company's website on May 9, 2024.
- The Company's website:https://www.jt.com/investors/
Notes
- Changes in significant subsidiaries during the current period (changes in specified subsidiaries resulting in change in scope of consolidation): None
- Changes in accounting policies and changes in accounting estimates
- Changes in accounting policies due to revisions in accounting standards under IFRS:Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
For details, please refer to "1. Matters Regarding Summary Information, (1) Changes in Accounting Policies and Changes in Accounting Estimates."
-
Number of shares issued (ordinary shares)
a. Total number of shares issued at the end of the period (including treasury shares)
As of March 31, 2024 | 2,000,000,000 shares |
As of December 31, 2023 | 2,000,000,000 shares |
- Number of treasury shares at the end of the period
As of March 31, 2024 | 224,658,364 | shares |
As of December 31, 2023 | 224,692,028 | shares |
- Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended March 31, 2024 | 1,775,336,403 shares |
Three months ended March 31, 2023 | 1,774,914,730 shares |
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
- Proper use of earnings forecasts, and other special matters
- Theforward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions and suppositions deemed to be reasonable by the Company. Actual business and other results may differ substantially due to various factors. These forward-looking statements are not intended to be construed as our assurance for it to materialize in the future. Please refer to "FORWARD-LOOKING STATEMENTS" for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use of earnings forecasts.
- The Group also discloses certainnon-GAAP financial measures that are not required or defined under IFRS, which is the accounting standard the Company applies. These non-GAAP financial measures are used internally to manage each of the business operations to understand their underlying performance, in view of the Group's target for mid- to long-term sustainable growth, and the Group believes that these financial measures are useful information for users of the financial statements to assess the Group's performance.
Adjusted operating profit
Adjusted operating profit presented is operating profit (loss) less amortization cost of acquired intangibles arising from business acquisitions and adjustment items (income and costs). Adjustment items (income and costs) are impairment losses on goodwill, restructuring income and costs, and other items. Furthermore, adjusted operating profit at constant FX is also presented as additional information. The Group has set its group-wide target for annual average growth rate in adjusted operating profit at constant FX, at mid to high single-digit over the mid- to long-term, and will continue to pursue this goal. Adjusted operating profit at constant FX is a financial measurement that excludes foreign exchange effects calculated and translated using the foreign exchange rates of the same period of the previous year from core revenue from tobacco business or from adjusted operating profit for the current period in the Tobacco Business. The results for the three months ended March 31, 2024 on a constant FX basis exclude the increase in profit due to inflation in some markets calculated using certain methods.
The Group makes accounting adjustments to the financial statements of subsidiaries that operate in hyperinflationary economies according to the requirements stipulated in IAS 29 "Financial Reporting in Hyperinflationary Economies."
Attached Materials | ||
Index | ||
1. | Matters Regarding Summary Information | 2 |
(1) | Changes in Accounting Policies and Changes in Accounting Estimates | 2 |
(2) | Revisions to the consolidated earnings forecasts most recently announced | 2 |
2. | Condensed Interim Consolidated Financial Statements | 4 |
(1) | Condensed Interim Consolidated Statement of Financial Position | 4 |
(2) | Condensed Interim Consolidated Statement of Income and Consolidated Statement of | |
Comprehensive Income | 6 | |
(3) | Condensed Interim Consolidated Statement of Changes in Equity | 8 |
(4) | Condensed Interim Consolidated Statement of Cash Flows | 10 |
(5) | Segment Information | 12 |
(6) Note on Premise of Going Concern | 16 | |
(7) | Subsequent Events | 17 |
- 1-
1. Matters Regarding Summary Information
- Changes in Accounting Policies and Changes in Accounting Estimates
The material accounting policies adopted for the condensed interim consolidated financial statements are the same as those for the consolidated financial statements for the year ended December 31, 2023 except for the following item. The Group computes income taxes for the interim period based on the estimated average annual effective tax rate.
(Changes in Accounting Policies)
The Group has adopted the following new accounting standards, amended standards and new interpretations from the year ending December 31, 2024.
IFRS Accounting Standards
IFRS 7 Financial Instruments: Disclosures
IAS 7 Statement of Cash Flows
Description of new standards and amendments
Providing requirements for disclosure relating to supplier finance arrangements
The adoption of the above standards and interpretations does not have a material impact on the condensed interim consolidated financial statements.
Part of the consolidated financial statements for the year ended December 31, 2023 have been reclassified to conform with the presentation for the beginning of first quarter ended March 31, 2024.
(2) Revisions to the consolidated earnings forecasts most recently announced
No items to report.
- 2 -
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief, or current and future expectations of our management with respect to our business, financial condition and results of operations. In some cases, you can identify forward- looking statements by terms such as "may", "will", "should", "would", "expect", "intend", "project", "plan", "aim", "seek", "target", "anticipate", "believe", "estimate", "predict", "potential" or the negative of these terms or other similar terminology. These statements are not guarantees of future performance and are subject to various risks and uncertainties. Actual results, performance or achievements, or those of the industries in which we operate, may differ materially from any future results, performance or achievements expressed or implied by these forward- looking statements. In addition, these forward-looking statements are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise and involve known and unknown risks and uncertainties.
Forward-looking statements regarding operating results are particularly subject to a variety of assumptions, some or all of which may not be realized.
Risks, uncertainties or other factors that could cause actual results to differ materially from those expressed in any forward-looking statement include, without limitation:
- increase in awareness of health concerns related to smoking;
- regulatory developments; including, without limitation, tax increases and restrictions on sales, marketing, packaging, labeling and use of tobacco products, privately imposed restrictions and governmental investigations;
- litigation around the world alleging adverse health and financial effects resulting from, or relating to, tobacco products;
- our ability to further diversify our business beyond the traditional tobacco industry;
- our ability to successfully expand internationally and make investments outside Japan;
- competition, changing consumer preferences and behavior;
- our ability to manage impacts derived from business diversification or business expansion;
- economic, regulatory and political changes, such as nationalization, terrorism, wars and civil unrest, in countries in which we operate;
- fluctuations in foreign exchange rates and the costs of raw materials; and
- catastrophes, including natural disasters.
Notes on the Russia-Ukraine War
The Group is fully committed to complying with applicable regulations and international sanctions while continuing business operations. In parallel, given the continued challenging and complex environment, we continue to evaluate various options, including the potential transfer of ownership of our Russian tobacco business. As this moment, the Company is unable to reasonably estimate the outlook and the impact on its financial results. The Company will promptly make announcements regarding this matter if anything occurs that should be disclosed.
- 3 -
2. Condensed Interim Consolidated Financial Statements
- Condensed Interim Consolidated Statement of Financial Position
As of December 31, | (Millions of yen) | ||||
As of March 31, 2024 | |||||
2023 | |||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 1,040,206 | 766,948 | |||
Trade and other receivables | 535,302 | 571,262 | |||
Inventories | 832,611 | 875,469 | |||
Other financial assets | 58,633 | 50,459 | |||
Other current assets | 789,888 | 717,788 | |||
Subtotal | 3,256,639 | 2,981,925 | |||
Assets held for sale | 2,921 | 2,887 | |||
Total current assets | 3,259,561 | 2,984,811 | |||
Non-current assets | |||||
Property, plant and equipment | 821,499 | 846,256 | |||
Goodwill | 2,616,440 | 2,731,698 | |||
Intangible assets | 200,819 | 193,655 | |||
Investment property | 9,338 | 9,370 | |||
Retirement benefit assets | 65,856 | 70,084 | |||
Investments accounted for using the equity | 56,726 | 60,134 | |||
method | |||||
Other financial assets | 155,267 | 160,113 | |||
Other non-current assets | 7,212 | 6,928 | |||
Deferred tax assets | 89,379 | 95,954 | |||
Total non-current assets | 4,022,536 | 4,174,191 | |||
Total assets | |||||
7,282,097 | 7,159,003 | ||||
- 4 -
As of December 31, | (Millions of yen) | ||||
As of March 31, 2024 | |||||
2023 | |||||
Liabilities and equity | |||||
Liabilities | |||||
Current liabilities | |||||
Trade and other payables | 592,802 | 523,215 | |||
Bonds and borrowings | 233,333 | 80,321 | |||
Income tax payables | 29,647 | 37,456 | |||
Other financial liabilities | 44,470 | 44,996 | |||
Provisions | 18,634 | 17,384 | |||
Other current liabilities | 1,008,390 | 926,436 | |||
Total current liabilities | 1,927,276 | 1,629,808 | |||
Non-current liabilities | |||||
Bonds and borrowings | 908,926 | 939,268 | |||
Other financial liabilities | 40,678 | 39,282 | |||
Retirement benefit liabilities | 279,443 | 279,153 | |||
Provisions | 45,527 | 45,790 | |||
Other non-current liabilities | 127,170 | 113,845 | |||
Deferred tax liabilities | 40,586 | 39,388 | |||
Total non-current liabilities | 1,442,329 | 1,456,725 | |||
Total liabilities | |||||
3,369,605 | 3,086,533 | ||||
Equity | |||||
Share capital | 100,000 | 100,000 | |||
Capital surplus | 736,478 | 736,444 | |||
Treasury shares | (489,194) | (489,122) | |||
Other components of equity | 290,550 | 470,118 | |||
Retained earnings | 3,192,323 | 3,172,063 | |||
Equity attributable to owners of the parent | 3,830,156 | 3,989,504 | |||
company | |||||
Non-controlling interests | 82,336 | 82,966 | |||
Total equity | 3,912,491 | 4,072,470 | |||
Total liabilities and equity | |||||
7,282,097 | 7,159,003 | ||||
- 5 -
- Condensed Interim Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Condensed Interim Consolidated Statement of Income Three months ended March 31, 2023 and 2024
(Millions of yen) | |||
2023 | 2024 | ||
Revenue | |||
665,278 | 740,333 | ||
Cost of sales | (262,332) | (320,101) | |
Gross profit | 402,946 | 420,232 | |
Other operating income | 3,439 | 6,377 | |
Share of profit in investments accounted | 1,299 | 2,073 | |
for using the equity method | |||
Selling, general and administrative expenses | (201,280) | (212,863) | |
Operating profit | 206,404 | 215,818 | |
Financial income | 7,483 | 14,877 | |
Financial costs | (30,741) | (29,429) | |
Profit before income taxes | 183,146 | 201,266 | |
Income taxes | (37,920) | (43,499) | |
Profit for the period | 145,226 | 157,766 | |
Attributable to: | |||
Owners of the parent company | 144,684 | 157,266 | |
Non-controlling interests | 542 | 501 | |
Profit for the period | 145,226 | 157,766 | |
Interim earnings per share | |||
Basic (Yen) | 81.52 | 88.58 | |
Diluted (Yen) | 81.49 | 88.57 |
Reconciliation from "Operating profit" to "Adjusted operating profit"
(Millions of yen)
Operating profit
Amortization cost of acquired intangibles arising from business acquisitions
20232024
206,404215,818
15,06812,952
Adjustment items (income) | (6) | (1,963) | |||
Adjustment items (costs) | 1,901 | (112) | |||
Adjusted operating profit | 223,367 | 226,695 | |||
- 6 -
Condensed Interim Consolidated Statement of Comprehensive Income
Three months ended March 31, 2023 and 2024
Profit for the period
Other comprehensive income
Items that will not be reclassified to profit or loss
Net gain (loss) on revaluation of financial assets measured at fair value through other comprehensive income
Total of items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit
or loss
Exchange differences on translation of foreign operations
Net gain (loss) on derivatives designated as cash flow hedges
Hedge costs
Total of items that may be reclassified subsequently to profit or loss
Other comprehensive income (loss), net of taxes
Comprehensive income (loss) for the period
(Millions of yen)
20232024
145,226157,766
1,1321,220
1,1321,220
26,518 | 183,361 | |
(2,564) | (3,104) | |
- | (229) | |
23,954 | 180,028 | |
25,086 | 181,248 | |
170,311 | 339,015 | |
Attributable to: | |||||
Owners of the parent company | 166,722 | 337,642 | |||
Non-controlling interests | 3,589 | 1,373 | |||
Comprehensive income (loss) for the period | 170,311 | 339,015 | |||
- 7 -
Attachments
- Original Link
- Original Document
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Disclaimer
Japan Tobacco Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 07:54:07 UTC.