OREANDA-NEWS. August 5, 2011. Market share increases in most key markets

Japan Tobacco International (JTI) business results for April-June and January-June 2011

Highlights

April-June 2011

>          Core net sales excluding tax increased by 13.8%, driven by pricing and GFB shipment volume growth.

>          At constant rates of exchange, core net sales excluding tax grew by 6.0% and core net sales excluding tax per thousand cigarettes increased by 6.2% to USD 24.9.

>          GFB shipment volume grew 4.0% driven by Russia, the Middle East and Italy.

January-June 2011

>          Core net sales excluding tax increased by 9.3%, driven by pricing and GFB shipment volume growth.

>          At constant rates of exchange, core net sales excluding tax grew by 6.2% and core net sales excluding tax per thousand cigarettes increased by 6.1% to USD 25.7.

>          GFB shipment volume grew 3.2% driven by Russia, Turkey and Italy.

Year-on-year market share continued to grow in most key markets including Turkey, Taiwan, Italy, France and Russia.

January-June results for 2010 and 2011

 

2010 Results

2011 Results

Jan-Mar

Apr-June

Jan-June

Jan-Mar

Apr-June

Jan-June

Total shipment volume (billions of cigarettes)

94.1

110.7

204.7

94.5 (+0.5%)

110.4 (-0.2%)

204.9 (+0.1%)

GFB shipment volume (billions of cigarettes)

54.6

63.7

118.3

55.8 (+2.1%)

66.2 (+4.0%)

122.0 (+3.2%)

Core net sales, excluding tax (millions of USD )

2,343

2,571

4,914

2,447 (+4.4%)

2,925 (+13.8%)

5,372 (+9.3%)

Core net sales per thousand cigarettes, excluding tax

(USD )

25.2

23.4

24.2

26.1 (+3.9%)

26.7 (+14.0)

26.4 (+9.2%)

( ) Net change in comparison to the same period in 2010

[Reference]

January-June results for 2010 and 2011 at constant rates of exchange

 

2010 Results

2011 Results

 

Jan-Mar

Apr-June

Jan-June

Jan-Mar

Apr-June

Jan-June

Core net sales, excluding tax (millions of USD )

2,343

2,571

4,914

2,495 (+6.5%)

2,725 (+6.0%)

5,220 (+6.2%)

Core net sales per thousand cigarettes, excluding tax

(USD )

25.2

23.4

24.2

26.7 (+6.0%)

24.9 (+6.2%)

25.7 (+6.1%)

( ) Net change in comparison to the same period in 2010

Shipment Volume by Cluster: April-June 2011

•           South and West Europe: Both total shipment volume and GFB shipment volume increased by 0.7% compared to the same period of the prior year. GFB volume growth in Italy and France offset the impact of continued industry contraction in Spain. Market share increased in the key markets of Italy and France.

•           North and Central Europe: GFB shipment volume continued to grow, increasing by 4.8%, largely driven by a strong performance in Poland. Total shipment volume decreased by 1.0%, due to the previous year's temporary increase in demand in the UK following tax hike speculation. Market share grew in Poland and Sweden.

•           CIS+: GFB shipment volume continued to grow, increasing by 7.8%, driven by growth in Russia and Romania. Total shipment volume decreased by 3.1% due to industry contraction in Ukraine and the unstable operating environment in Belarus. This volume decrease was partly offset by growth in Romania. Market share increased in Russia and Kazakhstan.

•           Rest-of-the-World: Total shipment volume increased by 5.2% driven by growth in the Middle East. GFB volume increased by 0.5%. Market share increased in Turkey, Taiwan, Korea and Malaysia.

Global Flagship Brands (GFB): April-June 2011

•           Winston: Shipment volume increased by 4.6%, driven by strong performances in Russia, the Middle East, Turkey and Italy, which largely compensated for declines in Belarus, Spain and Ukraine.

•           Camel: Shipment volume decreased by 0.5%. Growth in France and the Middle East was offset by continued industry contraction in Spain.

•           Mild Seven: Shipment volume decreased by 3.4% due to trade inventory adjustment in Taiwan following a price increase.

•           LD: Shipment volume increased by 13.2% driven by growth in Russia and Poland.

Six-month Performance: January-June 2011

•           GFB shipment volume increased by 3.2%, driven by positive performances in Russia, Turkey, Italy, Poland and the Middle East. Total shipment volume remained flat. Growth in the Middle East, Romania, Russia and Italy was offset by declines in Ukraine, Spain and Belarus.

•           Core net sales excluding tax increased by 9.3%, driven by strong pricing and GFB shipment volume growth. At constant rates of exchange, the increase was 6.2%.

•           Core net sales excluding tax per thousand cigarettes also increased by 9.2% to USD 26.4. At constant rates of exchange, the increase was 6.1%.