INTERNATIONAL. Japan Tobacco International (JTI) has posted a +9.3% rise in first-half core net sales to US$5.37 billion. The growth was driven by price increases and the progress of its Global Flagship Brands, JTI said.
At constant rates of exchange, core net sales excluding tax grew by +6.2% and core net sales excluding tax per thousand cigarettes increased by +6.1% to US$25.70. Volume shipments of Global Flagship Brands grew +3.2% in the half, driven by strong performances in Russia, Turkey and Italy.
In the latest quarter, from April to June, core net sales excluding tax increased by +13.8%, driven by pricing and shipment volume growth among the leading brands.
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In the second quarter, South and West Europe total shipment volume and Global Flagship Brand (GFB) shipment volume each increased by +0.7% compared to the same period of the prior year. GFB volume growth in Italy and France offset the impact of continued industry contraction in Spain. Market share increased in the key markets of Italy and France, said JTI.
North and Central Europe GFB shipment volume continued to grow, increasing by +4.8%, largely driven by a strong performance in Poland. Total shipment volume decreased by -1.0%, due to the previous year’s temporary increase in demand in the UK following tax hike speculation. Market share grew in Poland and Sweden.
In the CIS Region, GFB shipment volume continued to grow, increasing by +7.8%, driven by growth in Russia and Romania. Total shipment volume decreased by -3.1% due to industry contraction in Ukraine and the unstable operating environment in Belarus. This volume decrease was partly offset by growth in Romania. Market share increased in Russia and Kazakhstan.
Rest-of-the-World: Total shipment volume increased by +5.2% driven by growth in the Middle East. GFB volume increased by +0.5%. Market share increased in Turkey, Taiwan, Korea and Malaysia.
Among the key brands, Winston shipment volume increased by +4.6%, driven by strong performances in Russia, the Middle East, Turkey and Italy, which largely compensated for declines in Belarus, Spain and Ukraine.
Camel shipment volume decreased by -0.5%. Growth in France and the Middle East was offset by continued industry contraction in Spain. Mild Seven shipment volume decreased by -3.4% due to trade inventory adjustment in Taiwan following a price increase. LD shipment volume increased by +13.2% driven by growth in Russia and Poland.
In other JTI news, the company is to acquire the outstanding shares in Haggar Cigarette & Tobacco Factory Ltd, the leading tobacco company in Sudan and South Sudan. The acquisition is valued at around US$450 million and is expected to conclude in November.
