Japan Tobacco Inc.

Japan Tobacco raised its full-year earnings forecast in its second-quarter results for the fiscal year ending December 2026, lifting revenue to 3.885 trillion yen and operating profit to 1.008 trillion yen. In the first half, revenue rose 17.7% year on year and operating profit rose 29.0%, while total tobacco sales volume also held firm with a 1.0% increase. The dividend per share was raised by 30 yen from the previous forecast of 242 yen to 272 yen, putting the dividend yield at 3.96%. The share price closed at 6,870 yen on August 20, 2026, up 21.8% since the start of the year and up 43.5% over one year, trading near record highs. Meanwhile, risks have been flagged from tighter regulation, including the passage of a UK bill banning tobacco sales to people born after 2009, and from potential impairment of goodwill, which accounts for 34.4% of total assets.

Japan Tobacco Inc. announced on July 30 its consolidated results for the second quarter of the fiscal year ending December 2026. Revenue rose 17.7 percent year on year to 1.986 trillion yen, and net profit increased 35.0 percent to 431.829 billion yen, marking a sharp rise in both revenue and profit. In the tobacco business, revenue and profit grew in all clusters: Asia, Western Europe, and EMA. In particular, revenue in the EMA cluster rose 25.2 percent, driving overall performance. In response, the company revised upward both its full-year earnings forecast and annual dividend. The next day, July 31, its share price was bought up to 7,135 yen, up 470 yen from the previous day, and during trading hours it hit a record high of 7,218 yen since listing. On the Tokyo market on August 13, the stock rose for a third straight day, with JT shares closing at 7,068 yen, up 42 yen from the previous day, and trading continues to hover at high levels.

According to disclosures made on July 30, Nippon Steel Solutions raised its first-half net profit forecast by 6 percent, adding to its record-high profit outlook, and also increased its full-year forecast. Japan Tobacco raised its current-term net profit forecast by 13 percent, adding to its record-high profit outlook, and increased its dividend by 30 yen. Coca-Cola Bottlers Japan Holdings swung to a first-half net profit and announced a share buyback of up to 14 million shares, representing 8.6 percent of outstanding shares excluding treasury stock, with a maximum value of 400 billion yen. Elsewhere, Sekisui Jushi raised its current-term net profit forecast by 23 percent, increased its dividend by 18 yen, and expanded its share buyback amount from 2.7 billion yen to 3 billion yen. Mizuho Financial Group raised its current-term net profit forecast by 8 percent, adding to its record-high profit outlook, and expanded its share buyback program from the current 25 million shares and 100 billion yen to 35 million shares and 200 billion yen. On the other hand, negative factors also emerged, such as Nihon M&A Center Holdings reporting an 11 percent decline in ordinary profit for the April-June quarter, Kagome lowering its current-term net profit forecast by 22 percent, and Osaka Steel revising its first-half ordinary profit forecast to a loss and maintaining a previously undecided first-half dividend at zero.

Japan Tobacco on the 30th revised upward its consolidated net profit forecast for the full year ending December 2026, from the previous 570 billion yen to 644 billion yen, a 26.2 percent increase from the prior year. This exceeds the consensus forecast of 615.2 billion yen from 15 analysts. The upgrade reflects strong overseas sales in its core tobacco business, with first-half results surpassing plans. The annual dividend forecast was also raised from 242 yen to 272 yen.

Japan Tobacco announced on the 15th that it has applied to the Ministry of Finance to raise prices by 40 yen each on all 31 stick brands for its Ploom heat-not-burn tobacco. The move is in response to a revision of the tax system on October 1, and if approved, the retail prices will be revised from that date. After the price hike, the Evo series will cost 620 yen for a pack of 20, Mevius will be 590 yen, and Camel will be 570 yen. The October revision will eliminate the tax burden gap between conventional cigarettes and heat-not-burn products, after which tax rates will be raised gradually.