Company Reports

Japan Tobacco's momentum continued in the second quarter as core tobacco revenue grew 22% on the roughly equal impact of higher prices and favorable currency benefits. Tobacco-adjusted operating profit margin expanded by more than 2 percentage points to 36.5%.

Japan Tobacco is the second-largest tobacco company by volume globally, excluding China, with a market share of about 20%, according to Euromonitor. Its competitive edge is greatest in its home market, where it holds a commanding 63% cigarette market share. Moreover, the popularity of its leading brands, especially Mevius, extends to other Asia-Pacific countries.

Japan Tobacco's strong performance continued into the first quarter, with tobacco core revenue growing 16% due to higher prices and volumes, as well as favorable currency movements. Tobacco adjusted operating profit margin expanded 160 basis points to 38.3%

Japan Tobacco is the third-largest tobacco company by volume globally, excluding China, with a market share of about 17%, according to Euromonitor. Its competitive edge is greatest in its home market, where it holds a commanding 63% cigarette market share. Moreover, the popularity of its leading brands, especially Mevius, extends to other Asia-Pacific countries.

Japan Tobacco's strong performance continued into the fourth quarter, as tobacco core revenue grew 15% on higher prices and volumes as well as favorable currency movement. Tobacco adjusted operating profit margin held roughly steady at about 14.1%.

Japan Tobacco is the third-largest tobacco company by volume globally, excluding China, with a market share of about 17%, according to Euromonitor. Its competitive edge is greatest in its home market, where it holds a commanding 63% cigarette market share. Moreover, the popularity of its leading brands, especially Mevius, extends to other Asia-Pacific countries as well.

On Nov. 25, Japan Tobacco announced that Takehiko Tsutsui would replace Masamichi Terabatake as CEO effective Jan. 1, 2026. Tsutsui would also join the board of directors, while Terabatake would serve as deputy chairperson of the board upon approval at the annual meeting on March 25.

Japan Tobacco is the second-largest tobacco company by volume, globally excluding China, with a market share of about 19%, according to Euromonitor. Its competitive edge is greatest in its home market, where it holds a commanding 63% cigarette market share. Moreover, the popularity of its leading brands, especially Mevius, extends to other Asia Pacific countries as well.

Japan Tobacco's strong performance continued into the third quarter, as tobacco core revenue grew 18% (constant-currency) on higher prices, the Vector acquisition, and better-than-expected volumes across the footprint. Tobacco adjusted operating profit margin expanded 1.8 percentage points to 33%.

Japan Tobacco's momentum continued through the second quarter, as tobacco core revenue grew 14% (constant-currency) on higher prices, the Vector acquisition, and volume growth of 2.6%. Tobacco adjusted operating profit margin expanded 2.2 percentage points to 34.8%.

Japan Tobacco is the second-largest tobacco company by volume, globally excluding China, with a market share of about 19%, according to Euromonitor. Its competitive edge is greatest in its home market, where it holds a commanding 63% cigarette market share. Moreover, the popularity of its leading brands, especially Mevius, extends to other Asia Pacific countries as well.

Japan Tobacco started 2025 with another quarter of strong results. Tobacco core revenue grew 14% in constant currency as the Vector acquisition and higher pricing offset a 1.3% volume decline in the first quarter. Firmwide adjusted operating profit margin expanded 160 basis points to 32.2%.

Japan Tobacco is the third-largest tobacco company by volume, globally excluding China, with a market share of about 18%, according to Euromonitor. Its competitive edge is greatest in its home market, where it holds a commanding 62% cigarette market share. However, the popularity of its leading brands, especially Mevius, extends to other Asia Pacific countries as well.

Japan Tobacco ended 2024 with another quarter of strong performance as tobacco core revenue grew by 14.5% on a constant-currency basis as volumes surprised with growth of 3%. However, 2025 guidance points to slower top-line growth (6.6% constant currency) as well as lower adjusted operating margin.

Japan Tobacco is the third-largest tobacco company by volume, globally excluding China, with a market share of about 10%, according to Euromonitor. Its competitive edge is greatest in its home market, where it holds a commanding 60% cigarette market share, though global competitors have started chipping away at its share position. However, the popularity of its leading brands, especially Mevius, extends to other Asia Pacific countries as well.

Japan Tobacco's third quarter saw tobacco core revenue grow another 8% on a constant currency basis. Volume increased by 2.4%, while better price/mix constituted the rest of the growth. The company raised its outlook for revenue and adjusted operating profit by 1.8% and 5.1%, respectively

Currency has been a significant tailwind for Japan Tobacco in recent years amid a weakening yen given its global footprint. Still, underlying volume and pricing performance has been strong for its cigarettes business as reduced-risk products remain a minute portion of revenue.

Japan Tobacco is the third-largest tobacco company by volume, globally excluding China, with a market share of about 10%, according to Euromonitor. Its competitive edge is greatest in its home market, where it holds a commanding 60% cigarette market share, though global competitors have started chipping away at its share position. However, the popularity of its leading brands, especially Mevius, extends to other Asia Pacific countries as well.

Wide-moat Japan Tobacco maintained stable profit growth of 3% in the second quarter, thanks to further yen weakness and pricing strength in the EMA geographical cluster, which is composed of Russia, duty free, and markets outside Asia and Western Europe. The above-expectation pricing coupled with decreased supply chain costs has prompted management to lift its 2024 currency-neutral adjusted operating profit target by 2.3%, but it maintained the dividend of JPY 194 per share. The recent trend reversal of the yen may turn exchange rates into a headwind from the third quarter. We thus anticipate profit growth will take a breather, although our thesis that JT's pricing power will bolster midterm profit growth remains intact.

Japan Tobacco, or JT, aims to achieve mid- to high-single-digit profit growth through global expansion, investment in reduced-risk products, or RRP, and optimization of its global manufacturing footprint over the mid to long run. Regaining share at home by expanding its heated tobacco lineups while continually increasing its overseas presence through combustibles and RRP will be key to attaining its target.