Japan Tobacco's FY profit rises almost 10%, set for more growth in 2025

JAPAN TOBACCO

13/02/2025 07:27

LONDON, Feb 13 (Reuters) - Japan Tobacco  2914.T  on
Thursday reported a 9.7% increase in annual adjusted operating
profit, thanks to selling more higher-priced packs of tobacco
and its acquisition of U.S. tobacco company Vector Group. 
    The company, which makes Benson & Hedges and Winston
cigarettes, said it expects operating profit and revenues to
rise by a further 6.9% and 8.1% in 2025, even as its volumes
decline by up to 2% as smoking rates fall in some markets. 
    
    WHY IT'S IMPORTANT
    Tobacco businesses like Japan Tobacco's face increasingly
strict regulation and a growing awareness of health risks around
the world, putting their sales under pressure in some markets. 
    However, Japan Tobacco and its rivals still make hefty
profits, with sales rising elsewhere and smokers willing to pay
more for their fix. Nevertheless, Japan Tobacco is looking to
grow revenue from alternative products to offset volume
declines. 
    
    BY THE NUMBERS
    * Japan Tobacco's fourth quarter adjusted operating profit
rose 56.1% at constant currency. Annually, it reported a 9.7%
rise in constant currency.
    * Core revenues grew 14.5% at constant currency and volumes
were up 3% in the quarter. Annually, they rose 9.1% and 2.4%,
respectively. 
    * The company forecasts a 6.9% rise in core revenue and an
8.1% rise in adjusted operating profit in constant currency in
2025.
    * Volumes are expected to decline by between 1% and 2% this
year, it forecasts. 
    
    
    
    

 (Reporting by Emma Rumney; Editing by Mrigank Dhaniwala)
 ((Emma.Rumney@thomsonreuters.com; +447391409253;))