The Japanese giant Japan Tobacco saw its results decline last year, penalized by the decline in tobacco sales in Japan, but it is counting on the international market and its activities in the pharmacy and food to improve its profitability in 2018.
A REBOUND AND ACCELERATION OF INVESTMENT IN THE E-CIGARETTE!
For the full year 2017, net profit stood at 392,4 billion yen (around 2,9 billion euros at the current rate), down 6,9% compared to 2016, when the group had recorded exceptional gains on the sale of properties bThis result is lower than the 402 billion yen targeted at the start of the year and which was already a decrease from the 421,7 billion yen in 2016.
Japan Tobacco also missed its operating profit target, reaching 561,1 billion yen, down 5,4%, against 565 billion yen expected. Turnover is slightly above forecasts at 2.139,7 billion yen and almost stable (-0,2%) over one year. The group was targeting 2.130 billion yen.
Japan Tobacco explained its results by " the decline in tobacco sales in the Japanese market", Which could not be compensated by" growth in international tobacco sales and pharmacy activities". Exceptional difficulties with a distributor in the United Kingdom also weighed on the results, he detailed in his press release.
The group, which notably distributes the Winston and Camel brands (outside the United States), saw its sales of cigarettes globally stagnate in volume internationally, while they have
fell by more than 12% in Japan. For 2018, Japan Tobacco expects an environment always " complicated"
« The tobacco business remains our source of profit growth and we expect a contribution from the pharmaceutical and food businesses to complement the profit growth“, Said the group. It provides in particular accelerate its investments in electronic cigarettes, growth drivers in the tobacco market.
Japan Tobacco wants to become " the number 1 market for products with limited risks (electronic cigarettes, heated tobacco, editor's note) in Japan by the end of 2020“Said its CEO Masamichi Terabatake, quoted in the statement.
The group has tested since June 2017 its first electronic cigarette in Japan, the Ploom Tech, which contains tobacco, heated to a temperature sufficient to generate steam, but insufficient to burn and release smoke like a conventional cigarette. The group also wants to continue to develop geographically in traditional tobacco.
Source : Zonebourse.com
