OREANDA-NEWS. February 07, 2011. Market share growth continues in most key markets GFB shipment volume increases.
Japan Tobacco International (JTI) business results for January – December 2010
Highlights

• Full year EBITDA grew by 10.6%. At constant rates of exchange, full year EBITDA increased by 7.7%, exceeding our growth forecast of 6.2%.
• Year-on-year market share1continued to grow in most key markets including Russia, France, Italy and Turkey.
• GFB2 shipment volume increased by 6.2% in the period of October-December 2010 compared to the same period of the prior year, while total shipment volume3 was virtually flat. The increase was driven by growth in the following markets: Russia, Italy, Taiwan and Turkey.
• Core net sales excluding tax4 increased by 2.5% in the period of October-December 2010 at constant rates of exchange, while on a reported basis they decreased by 0.9%. In the same period, core net sales excluding tax per thousand cigarettes5 were USD 24.4, an increase of 2.9% at constant rates of exchange.

Shipment Volume by Cluster

South and West Europe: Total shipment volume grew by 2.4% in October-December (Jan-Dec 2010: -2.0%), and GFB shipments also grew by 3.0% (Jan-Dec 2010: -0.8%) compared to the same period of the prior year. This growth was driven by strong performances in Italy and France. Market share increased in most key markets including France, Italy and Spain.

North and Central Europe: Total shipment volume increased by 2.5% in October- December (Jan-Dec 2010: 3.1%). GFB shipments increased by 7.9% in October-December (Jan-Dec 2010: 9.7%). Market share grew in Poland and Sweden.

CIS+: GFB shipments increased by 4.2% in October-December (Jan-Dec 2010: 0.3%), driven by growth in Russia and Kazakhstan. While market contraction slowed in October-December, total shipment volume decreased by 5.1% (Jan-Dec 2010: -5.1%), with industry contraction in Ukraine and Romania. Market share increased in Russia and Ukraine.

Rest-of-the-World: Total shipment volume increased by 6.3% in October-December (Jan-Dec 2010: 4.0%) driven by growth in Turkey and Taiwan. GFB volume increased by 11.6% in October-December (Jan-Dec 2010: 7.3%). Market share increased in Turkey, Korea and Taiwan.

Global Flagship Brands (GFB)

Winston: Shipment volume increased by 7.2% in October-December (Jan-Dec 2010: 3.1%), driven by strong performances in Russia, Italy and Turkey.

Camel: Shipment volume increased by 3.1% in October-December (Jan-Dec 2010: 1.4%). Volume growth in Turkey and France helped offset industry volume decline and down-trading in Italy.

Mild Seven: Shipment volume increased by 11.0% in October-December (Jan-Dec 2010: 5.8%) with growth in Taiwan and Korea.

LD: Shipment volume increased by 7.0% in October-December (Jan-Dec 2010: 6.1%) due to growth in Russia, Kazakhstan and Poland.

12-month Performance

Full year GFB shipment volume increased by 2.7% to 249.8 billion cigarettes (2009: 243.4 billion).

Total shipment volume decreased 1.5% to 428.4 billion cigarettes (2009: 434.9 billion). Growth in the Middle East, Turkey and France was offset by industry contraction in Russia, Ukraine, Spain and Romania.

Strong pricing drove core net sales excluding tax to increase by 5.6% to USD 10,223 million (2009: USD 9,682 million). At constant rates of exchange, the increase was 4.8%. Core net sales excluding tax per thousand cigarettes also increased, growing by 7.0% to USD 24.0 (2009: USD 22.5). At constant rates of exchange the increase was 6.1%.

Full year EBITDA increased by 10.6% to USD 3,281 million (2009: USD 2,965 million).
At constant rates of exchange, full year EBITDA increased by 7.7%, exceeding our growth forecast of 6.2%.

Japan Tobacco Inc. is a leading international tobacco product company. Its products are sold in over 120 countries and its internationally recognized cigarette brands include Winston, Camel, Mild Seven and Benson & Hedges. With diversified operations, JT is also actively present in pharmaceuticals and foods. The company’s adjusted net sales excluding tax were JPY1.980 trillion
(USD 21.3 billion*) in the fiscal year ended March 31, 2010.
For more detailed information http://www.jt.com/investors/results/tobaccobusiness/pdf/20110207_03.pdf