JTI says its share of key markets is increasing

By Charlotte Turner |

Japan Tobacco International (JTI) claims that its market share in key regions is increasing after reporting that its core revenue grew by 2.5% – from April to June – “driven by strong pricing and Global Flagship Brands”.

 

At constant rates of exchange, core revenue grew 11.8% and core revenue per thousand cigarettes increased 8.6%.

 

Total shipment volume grew 1.5% organically, and 2.8% – which accounts for the acquisition of Haggar Cigarette & Tobacco Factory Ltd (HCTF) in Sudan – driven by the CIS+ (Commonwealth of Independent states plus Russia) and Rest-of-the-World clusters.

 

GFB shipment volume grew 5.2% driven by the CIS+ cluster, notably Russia and several emerging markets, as well as Turkey.

 

This follows JTI’s strong Q1 revenue and GFB volume growth  for January-March 2012, when total and GFB shipment volume increased 4.7% and 9.5% respectively, driven by “continuous GFB momentum, favourable comparisons to the previous year in several markets, and a positive impact of the acquisition in Sudan”.

 

HY1 JAN-JUN 2012

For HY1 between January and June 2012, core revenue increased 6.6%. At constant rates of exchange, core revenue grew 13.4% and core revenue per thousand cigarettes increased 9.3%.

 

Total shipment volume grew across all clusters. GFB shipment volume grew 7.2% driven by Russia, Spain, Italy and Turkey. Year-on-year market share grew in most key markets, including Turkey, Spain, Italy, Canada and France.

 

JTI HY1 results

 

Shipment Volume by Cluster: April-June 2012

South and West Europe: Total shipment volume and GFB shipment volume decreased 3.5% and 2.9% respectively due to ongoing industry contraction.

 

Despite this, the overall performance was robust with strong market share gains in Spain, Italy and France.

 

North and Central Europe: Total shipment volume decreased 1.8% due to industry contraction mainly in the UK. GFB shipment volume increased 0.7% driven by growth in Germany and Austria. Market share grew in Poland and Germany.

 

CIS+: Total shipment volume grew 3.1% driven by 12.4% GFB shipment volume growth. GFB momentum continued in Russia and in several smaller markets.

 

Market share in Russia grew for the second consecutive quarter on a three-month rolling average basis with continued GFB share growth.

 

Rest-of-the-World: Total shipment volume increased 7.7% driven by the acquisition of HCTF (+2.9% excluding HCTF). GFB shipment volume grew 1.3% mainly in Turkey, Taiwan and the Philippines.  Market share grew in Turkey and Canada.

 

Global Flagship Brands (GFB): April-June 2012

Winston: Shipment volume increased 8.4% driven by strong momentum in Russia, Italy, Ukraine and other CIS+ markets.

 

Camel: Shipment volume declined 2.9% due to industry contraction and down-trading in South & West Europe, partly offset by growth in Russia.

 

Mild Seven: Shipment volume increased 1.5% mainly driven by Taiwan as a consequence of last year’s trade inventory adjustments.

 

LD: Shipment volume increased 13.6% driven by up-trading momentum in Russia. Volume also increased in Turkey and Kazakhstan.

 

Six-month Performance: January-June 2012

Core revenue on a reported basis increased 6.6% to US$5,728 million, driven by strong pricing and GFB shipment volume growth. At constant rates of exchange, core revenue increased 13.4%.

 

Core revenue per thousand cigarettes increased 2.8%. At constant rates of exchange, the increase was 9.3%.

 

GFB shipment volume grew 7.2% to 130.8 billion cigarettes, driven by Russia, Spain, Italy and Turkey.

 

Total shipment volume grew 3.7% to 212.4 billion cigarettes, driven by GFB momentum, the acquisition in Sudan and favorable comparisons to the previous year in several markets, mainly Spain and Italy, due to trade inventory movements, primarily for the January – March period.

International

OUT NOW: June/July issue + Top 10 Airports

The TRBusiness June/July 2024 edition, featuring the Top 10 Airports report, is now available...

International

TR Consumer Forum 2024 photo gallery now live

The TR Consumer Forum 2024 was packed with memorable moments, from the very first networking...

International

TR Consumer Forum welcomes Gulf Beverages

TRBusiness is proud to announce Gulf Beverages and African + Eastern as Diamond Sponsors for the...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend