JTI cuts cigarette sales in Russia by 11.4% in 2015
MOSCOW. Feb 4 (Interfax) - Japan Tobacco International (JTI) cut shipments to Russia by 11.4% in 2015.
The fall in sales took place amid a fall in the Russian tobacco market (by 6.3% according to the company's estimate), the prices of commercial reserves and the strengthening of competition in the lower price segment, which impacts the sales of local brands.
JTI's share on the Russia market fell by 1.2 percentage points to 33.6% in natural terms and to 34.6% in value terms, the company said in a statement.
The share of global flagship brands of JTI (Winston, Camel, Mevius, LD) in Russia rose by 0.2 percentage points to 24.1% thanks to LD cigarette sales.
The sales of global flagship brands on the Russian market fell by 8.1% for the year.
JTI's shipments to CIS countries (including Russia) in January-December fell by 7.9% to 152.5 billion cigarettes.
The company's total shipments fell by only 1% (to 393.9 billion units), despite the unfavorable situation on the markets of the Middle East and the decline of the market in Russia, the statement said.
The sales of flagship brands for the year rose 4.3% to 273.6 billion cigarettes.
Revenue from the profile business (without account of income from contract production and distribution) for last year fell by 13.2% to $10.338 billion. With the adjustment for exchange rate differences revenue rose 7%.
The company's adjusted operating profit in 2015 fell by 23.4% to $3.257 billion, without account of changes of exchange rate differences, profit growth amounted to 10.8%.
