Japan Tobacco International (JTI) reports core net sales increase of 10.9%, to US$11,211 million for calendar year 2011 and EBITDA growth of 17.3%, or 15.6% at constant rates of exchange, exceeding the company’s forecast.

At constant rates of exchange, core net sales increased 8.0%.

 

JTI believes that the double-digit growth achieved was a consequence of GFB (Global Flagship Brands) shipment volume growth and strong pricing.

 

GFB shipment volume grew 2.6% to 256.5 billion cigarettes, driven by Russia and the Middle East. Total shipment volume declined 0.6% to 425.7 billion cigarettes.

 

Growth momentum in the Middle East, Romania and Italy partly offset industry contraction in Ukraine, Spain and Russia.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OCTOBER-DECEMBER 2011

 

Core net sales grew 5.3%, or 7.0% at constant rates of exchange, driven by pricing. GFB shipment volume growth in Russia and the Middle East partly offset declines in Spain and the Philippines.

 

In terms of Shipment Volume by Cluster for the period of October-December 2011, South and West Europe saw decreases of 7.5% and 8.7% respectively. JTI believes that this is due to industry contraction in Spain.

 

Market share increased in Italy, France and Spain. North and Central Europe saw GFB shipment volume increase by 0.7% driven by growth in Poland, Czech Republic and Austria.

 

Total shipment volume decreased 3.1% due to ‘industry contraction’ and ‘an unfavorable comparison with the previous year as a result of the timing of price increases in the UK’.

 

Market share grew in Poland, Czech Republic and Germany. GFB shipment volume grew 5.5%, driven by a positive performance in Russia, Romania and Ukraine.

 

However, total shipment volume declined by 3.5% due to ‘the decline in low end local brands in Russia’, partly offset by the GFB shipment growth.

 

Share of market in Russia was maintained, with continued GFB share growth.

 

Total shipment volume increased by 2.5% for the Rest-of-the-World, driven by momentum in the Middle East. GFB shipment volume decreased 8.8% ‘due to an unfavorable comparison with the previous year, when trade inventory was built-up in the Philippines ahead of a price increase in January 2011’.

 

Market share grew in Turkey.

 

GLOBAL FLAGSHIP BRANDS (GFB):

 

For the period of October-December 2011 shipment volume for the brand Winston increased 0.1% driven by momentum in Russia and the Middle East. This compensated for the industry contraction in Spain and the unfavorable comparison with the previous year in the Philippines.

 

Camel saw a shipment volume decline of 7.4% due to industry contraction and down-trading in Spain and Mild Seven saw a greater decline of 13.2% due to ‘price disadvantage in Korea’, as well as industry contraction and down-trading in Taiwan.

 

On a more positive note LD saw a shipment volume increase of 10.7% driven by our momentum in Russia and Poland.