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Japan Tobacco releases second quarter report for 2021, heat-not-burn market growth exceeds expectations

Recently, Japan Tobacco (JT) released its quarterly report for the second quarter of 2021: In the first half of 2021, revenue was 1.14 trillion yen (approximately US$10.4 billion), an increase of 11.1% year-on-year; net profit was 225.2 billion yen (approximately US$2.055 billion). , A year-on-year increase of 30.5%, of which the revenue from the harm reduction products segment was 29.3 billion yen (approximately US$267 million), an increase of 13.1% year-on-year, and the sales volume of heating non-combustion cartridges was 2.1 billion, an increase of 16.7% year-on-year.heat not burn-01

According to data from the Japan Tobacco Research Institute, in the 2020 fiscal year ending in March, sales of Japanese cigarette products fell by 16.3% from the previous year, with sales of only 98.8 billion cigarettes, which is the lowest level since comparable data were available in the 1990 fiscal year. . This figure is down by more than 70% from the peak of 348.3 billion sales in fiscal year 1996. At the same time, heat-not-burn tobacco has become popular throughout Japan since around 2016, especially among the younger generation. In fiscal year 2020, sales of heat-not-burn tobacco products in Japan reached 41.3 billion, equivalent to about 40% of cigarette sales. Japan Tobacco’s heat-not-burn product sales growth exceeds expectations, and it has launched the next-generation heat-not-burn product

 

According to the Japan Tobacco Company, in 2021, the decline in total Japanese cigarette sales will expand from over 8% to over 9%, and the market for heat-not-burn products will continue to expand. Japan Tobacco expects that its cigarette sales decline will increase from more than 7% to slightly less than 11% in 2021. The main reason is that its harm reduction product segment has increased more than originally expected, as well as fierce price competition; Sales are expected to remain above 4.5 billion. Masamichi Terabatake, CEO of Japan Tobacco Company, said, “Due to the strong sales growth trend in the industry, the company has raised its full-year revenue forecast by 120 billion yen to 2.2 trillion yen (approximately US$20.07 billion). In terms of harm reduction products, the company has already announced 7 Launched the next-generation heat-not-burn device Ploom X in Japan, the world’s largest heat-not-burn market. This is the company’s first global product developed in accordance with the needs of consumers around the world. It can provide richer and richer flavors and improved designs. , And a more intuitive user experience. Ploom X will be gradually launched in other markets.”

 


Post time: Sep-08-2021
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