JT Q2 results: net profit up 8.7%, Ploom X now launched in six markets

The Japan Tobacco Group (JT Group) recently released its financial report for the second quarter of 2023. Here are the main highlights:
1. Financial Overview
   - Revenue increased by 9.9% year-on-year to ¥1.39 trillion (approximately $9.17 billion)
   - Core revenue (at constant exchange rates) grew by 6.8% to ¥1.3 trillion
   - Adjusted operating profit (at constant exchange rates) rose by 4.7% to ¥434.3 billion
   - Adjusted operating profit (reported basis) increased by 6.7% to ¥442.8 billion
   - Operating profit grew by 8% to ¥413.6 billion
   - Net profit increased by 8.7% to ¥28.7 billion
2. Management Statement
   - JT Group CEO Masamichi Terabatake stated that the company's performance in the first half of the year was strong, particularly in the tobacco business, which performed well in market share and pricing.
   - Considering the accelerated investment in heated tobacco (HTS) in the second half of 2023, the full-year adjusted operating profit forecast at constant exchange rates remains unchanged.
   - Based on the current positive foreign exchange trends, the forecast on a reported basis has been revised upward, including adjusted operating profit.
   - The full-year dividend forecast remains unchanged at ¥188 per share, with an interim dividend of ¥94.
3. Future Investments and Developments
   - The company is accelerating investments in heated tobacco (HTS) to establish a foundation for future growth.
   - The heated tobacco product Ploom X has now been launched in six regional markets, having been introduced in the Czech Republic in June and planned for launch in Switzerland in September.
   - The expansion into regional markets is progressing smoothly, with expectations to launch in 14 markets by the end of 2023 and in 28 markets by the end of 2024.
4. Summary
   - JT achieved good growth in Q2 2023, with strong performance in the tobacco business.
   - JT is actively promoting investments and market expansion in the heated tobacco sector.