TOKYO, May 08 (Pulse News Wire) – Japan Tobacco Inc. (2914.T) reported a significant increase in operating profit for the first quarter of fiscal year 2026, bolstered by higher sales volumes and favorable exchange rates.
Revenue reached ¥1,016 billion, up from the previous year, while adjusted operating income stood at ¥3.195 billion, marking a substantial rise compared to the same period last year. The tobacco division saw solid performance across various markets, particularly in Russia and Turkey, despite challenges in Japan due to increased taxes on heated products. Adjustments related to pricing strategies and share momentum contributed positively to overall results.
Additionally, the company's investment in reduced-risk products (RRPs) such as Ploom continued to drive growth, with RRP-related revenues reaching ¥93 billion. In the processed foods sector, the company also posted a modest increase in revenue and earnings, primarily attributed to price adjustments in cold and ambient food categories. Despite rising raw material costs, the division managed to achieve higher profits.
Overall, Japan Tobacco remains optimistic about its full-year outlook and continues to monitor geopolitical developments, especially in the Middle East, which could impact global operations.
🟡 Confidence: Standard AI-translated content.