Japan Tobacco Reports Strong Q3 Growth

Japan Tobacco (JT) reported strong third-quarter earnings for 2024, with revenues of ¥2.39 trillion ($15.69 billion) and an adjusted operating profit of ¥672.5 billion, marking increases of 11% and 1.2% respectively from the previous year. The company's core revenue rose 6.8% at constant exchange rates, driven primarily by price increases and market share growth in the tobacco sector, alongside a notable 40% boost in Ploom heated tobacco volumes. However, profit attributable to owners saw an 11.5% decline year-on-year, reflecting challenges in the pharmaceutical segment that offset tobacco growth. Looking ahead, JT revised its full-year revenue forecast upwards to a 9% increase, up from 5.1%, citing resilient demand and pricing strategies as key factors. Despite facing regulatory pressures and declining smoking rates, JT's strategic pivot towards smoking alternatives appears to be paying off, enhancing its market position. The company remains optimistic, with revised forecasts for both operating and adjusted operating profit, indicating a robust outlook amid a challenging market environment.