JTI Credits HTS for Growth in Q1
Japan Tobacco Inc. (JTI) reported a 14.4% year-over-year increase in its Q1 2023 revenue, reaching 6,653 billion yen ($48.6 billion), with an operating profit of 2,064 billion yen ($15 billion), up 15.7%. The company's profit reached 1,447 billion yen ($10.6 billion), a 16.6% increase.
JTI's President and CEO, Masamichi Terabatake, stated that the company achieved robust performance in the first quarter on the back of positive business momentum. The strong pricing of tobacco products continued to drive the group's solid performance.
Terabatake highlighted that the growth of heated tobacco sticks (HTS) contributed to Japan Tobacco's positive revenue performance. Following the launch of Ploom X in the UK, the company introduced the product in Italy and Lithuania in April and plans to continue its rollout in Portugal by mid-May.
As reported earlier, on April 15, Japan Tobacco announced its intention to invest 300 billion yen (approximately $2.25 billion) over the next three years to promote its heated tobacco product, Ploom X. Of this sum, 200 billion yen (around $1.5 billion) will be allocated to markets outside of Japan. The company aims to launch Ploom X in over ten countries this year and cover at least 20 countries by the end of 2024.
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