Japan Tobacco Posts Net Profit Decline for 3 Years in Row
Tokyo, Feb. 6 (Jiji Press)--Japan Tobacco Inc. <2914> Thursday reported a third straight year of lower net profit for the year ended in December amid shrinking cigarette sales in its home country.
The company posted a consolidated net profit of 384,190 million yen, down 9.7 pct from the previous year. Sales dropped 1.8 pct to 2,175,626 million yen.
The termination of a license agreement over anti-HIV drugs also weighed on Japan Tobacco's financial performance.
Cigarette sales in Japan fell by nearly 8 pct to 75.5 billion units, marking their lowest level since the company was privatized in 1985. The drop is attributed to a decrease in the number of smokers, as well as a shift to heat-not-burn tobacco products.
Overseas tobacco sales, which include cigars and heat-not-burn products, grew about 4 pct to 445.8 billion units.
[Copyright The Jiji Press, Ltd.]