Japan Tobacco Releases Q3 2023 Report, Shows Significant Growth

Oct.31.2023
Japan Tobacco Releases Q3 2023 Report, Shows Significant Growth
Japan Tobacco reported a 7.4% YoY increase in total revenue for Q3 2023, reaching ¥2,157 billion, with a net profit of ¥442 billion.

Japan Tobacco, a leading tobacco company in Japan, released its report on October 31st, revealing a 7.4% year-on-year increase in total revenue for the third quarter of 2023, amounting to 2.157 trillion Japanese yen. Additionally, the company witnessed a 9.5% growth in net profit during the same period, reaching 442 billion Japanese yen.


Masamichi Terabatake, President and CEO of Japan Tobacco, has stated that despite intense market competition, the company's tobacco business continues to experience substantial growth, driven by a stable increase in market share and strong pricing.


Japan Tobacco has announced upward revisions to its projected revenue, core revenue, and adjusted operating profit. It is expected that the company will experience even greater growth in the coming year. The company plans to distribute a dividend of 188 yen per share, a disclosure made during the initial forecast.


Teruhata Terasuhata openly admitted that the company is ramping up its investment in heated tobacco products as part of its strategy to establish a foundation for future growth. Despite facing fierce competition in the market, their product, Ploom X, has already captured over 10% of the heated tobacco market in Japan and has been steadily increasing its market share from July to September 2023.


Terahata Masamichi stated that in response to the continuous depreciation of the yen, the company has conducted more proactive financial forecasting and adjustments, including revised operating profits. While adhering to the company's dividend policy, the annual dividend per share will remain unchanged at 188 yen.


He emphasized that, given the issue of hyperinflation in some markets, adjustments have been made to the results of the fiscal years 2022 and 2023, as well as the forecast for fiscal year 2023. He predicts that these hyperinflation issues will have an impact in countries such as Ethiopia, Iran, Sudan, and Turkey by the third quarter of 2023.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Product | BAT Revises Japan's VELO Convenience Store Lineup, Adding ¥380 Mango Pouches as Selected SKUs Exit
Product | BAT Revises Japan's VELO Convenience Store Lineup, Adding ¥380 Mango Pouches as Selected SKUs Exit
British American Tobacco's Japanese subsidiary, BAT Japan, launched VELO Mango Ice Medium on November 2, 2026, with distribution expanding to selected 7-Eleven, FamilyMart, NewDays and Seicomart stores from November 3. The new oral tobacco product contains 15 pouches per can and retails for ¥380, featuring a mango and cooling flavor profile at Medium intensity. At the same time, BAT Japan raised prices on multiple existing VELO products from ¥360 to ¥380 per can and withdrew selected SKUs from convenience store distribution without discontinuing them entirely. The changes affect product assortment, pricing and retail channel allocation.
product
Nov.04
Italy Proposes Earlier Vape and HTP Tax Hikes, New Rules for E-Liquid Pricing, Exclusive Deals and Distribution
Italy Proposes Earlier Vape and HTP Tax Hikes, New Rules for E-Liquid Pricing, Exclusive Deals and Distribution
Italy's proposed 2027–2029 budget would bring forward scheduled tax increases for e-cigarette liquids and heated tobacco products from January 1, 2028, to July 1, 2027. The consumption tax coefficient for nicotine-containing e-liquids would rise from 20% to 22%, that for nicotine-free liquids and applicable flavorings from 15% to 17%, and the heated-tobacco coefficient from 41% to 42%. The bill would also introduce official retail price schedules for e-liquids, restrict exclusive agreements between retailers and suppliers, and limit single-brand-dominated displays, sales incentives and bundled offers. Importing, authorized warehousing and retailer sourcing arrangements would also change. The proposals remain subject to parliamentary approval and subsequent implementing regulations.
Regulations
Nov.04
Italian Financial Police Seize 4.3 Million E-Cigarettes and Smoking Accessories; 28 Reported to Judicial Authorities Across Operations
Italian Financial Police Seize 4.3 Million E-Cigarettes and Smoking Accessories; 28 Reported to Judicial Authorities Across Operations
Italy's Guardia di Finanza announced on October 28 that officers in Latina province had seized approximately 4.3 million e-cigarettes and smoking accessories at an unauthorized warehouse in an operation involving restrictions on the possession and sale of tobacco-related products. Another 300,000 suspected counterfeit or unsafe items were confiscated during separate inspections, bringing total seizures across the operations to more than 4.6 million products. Twenty-eight people were reported to judicial authorities over suspected smuggling and counterfeiting offenses. Officials did not disclose separate vape quantities, the value of the merchandise or alleged violations associated with individual brands.
Enforcement
Oct.29
German Customs Seize 115,800 Vapes in €1.4 Million Tax Case
German Customs Seize 115,800 Vapes in €1.4 Million Tax Case
Germany's Magdeburg Main Customs Office seized 115,800 untaxed e-cigarettes containing a combined 4.366 million mL of e-liquid during four truck inspections between August 10 and September 4, 2026. The seizures prevented an estimated €1.397 million in tax losses and set a record for the customs office's jurisdiction. Criminal proceedings have been initiated against four truck drivers. The case follows a separate German investigation involving more than 7.6 million illicit vapes and an estimated €33.3 million in excise-tax losses.
Enforcement
Oct.13
FDA Revises Import Alert 98-07 Rules, Bringing May Enforcement Priorities Into Unauthorized ENDS Detentions
FDA Revises Import Alert 98-07 Rules, Bringing May Enforcement Priorities Into Unauthorized ENDS Detentions
The U.S. Food and Drug Administration has revised the rules under Import Alert 98-07 to incorporate its May 2026 enforcement-priority policy for certain electronic nicotine delivery systems marketed without premarket authorization. The alert continues to allow detention without physical examination, or DWPE, for ENDS lacking required marketing authorization, while directing field divisions to apply the May risk-based framework. When necessary, detention or refusal decisions must also undergo review by the FDA's Center for Tobacco Products. Products including PACHA and Vuse Pro have already emerged as industry examples of the May policy, although enforcement discretion does not constitute FDA marketing authorization.
News
Sep.28 by 2Firsts Perspectives
Reynolds Showcases Vuse Pro Flavors and VELO Nicotine Pouches at NACS Show 2026
Reynolds Showcases Vuse Pro Flavors and VELO Nicotine Pouches at NACS Show 2026
Reynolds American, a BAT subsidiary, showcased four Vuse Pro flavored e-cigarette pods and its VELO nicotine pouch portfolio at NACS Show 2026. Booth staff confirmed to 2Firsts that the Vuse Pro flavors are sold in the U.S., although they have not received FDA marketing authorization. BAT outlined plans to expand Vuse retail distribution and reported that VELO held a 30.5% year-to-date volume share of the U.S. modern oral nicotine category through August 2026. The booth also featured the newly launched VELO MAX range and merchandising displays combining cigarettes, vaping products and oral nicotine brands.
EXPO
Oct.09