INTERNATIONAL. Japan Tobacco International (JTI) has reported core net sales of US$11.2 billion in 2011, a rise of +10.9% year-on-year. The increase was driven by Global Flagship Brand (GFB) shipment volume and strong pricing, said the company. At constant rates of exchange, core net sales increased by +8%.
GFB shipment volume grew by +2.6% to 256.5 billion cigarettes, driven by Russia and the Middle East. Total shipment volume declined by -0.6% to 425.7 billion cigarettes. Growth momentum in the Middle East, Romania and Italy partly offset industry contraction in Ukraine, Spain and Russia, said JTI.
Full year EBITDA increased +17.3% to US$3,916 million, exceeding forecasts. At constant rates of exchange, it increased by +15.6%.
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October-December 2011
Core net sales grew +5.3%, or +7.0% at constant rates of exchange, driven by pricing, in the final quarter of 2011. GFB shipment volume growth in Russia and the Middle East partly offset declines in Spain and the Philippines.
In South and West Europe, due to industry contraction in Spain, both GFB and total shipment volumes decreased -7.5% and -8.7% respectively. Market share increased in Italy, France and Spain.
In North and Central Europe GFB shipment volume increased +0.7% driven by growth in Poland, Czech Republic and Austria. Total shipment volume decreased -3.1% due to industry contraction and an unfavourable comparison with the previous year as a result of the timing of price increases in the UK. Market share grew in Poland, Czech Republic and Germany.
In Russia and the CIS, GFB shipment volume grew +5.5%, driven by a positive performance in Russia, Romania and Ukraine. Total shipment volume declined -3.5% due to the decline in low-end local brands in Russia, partly offset by the GFB shipment growth. Share of market in Russia was maintained, with continued GFB share growth.
In the rest of the world, total shipment volume increased +2.5% driven by momentum in the Middle East. GFB shipment volume decreased -8.8% due to an unfavourable comparison with the previous year, when trade inventory was built-up in the Philippines ahead of a price increase in January 2011. Market share grew in Turkey.
Global Flagship Brands (GFB) October-December 2011
For Winston, shipment volume increased +0.1% driven by momentum in Russia and the Middle East. This compensated for the industry contraction in Spain and the unfavourable comparison with the previous year in the Philippines.
Camel shipment volume declined by -7.4% due to industry contraction and down-trading in Spain.
Mild Seven shipment volume declined -13.2% due to price disadvantage in Korea, as well as industry contraction and down-trading in Taiwan.
LD shipment volume increased by +10.7% driven by momentum in Russia and Poland.
