JT Group released its financial report for the year 2023 on February 13th, revealing a profit of 482.3 billion Japanese yen (around $3.2 billion), representing an increase of almost 9% compared to the previous fiscal year. The company also reported a revenue growth of 6.9% year-on-year, amounting to 2.84 trillion Japanese yen. In the fourth quarter of 2023, JT Group recorded a profit of 403 billion Japanese yen and a revenue of 684.1 billion Japanese yen, marking a respective growth of 3.5% and 5.4% compared to the same period in 2022.
"I am pleased to report that despite challenges in our operating environment, the performance of JT Group in 2023 has reached record levels across all financial indicators. In a constantly changing exchange rate environment, our adjusted operating profit exceeded our expectations, growing by 5.2%, thanks to all business sectors," said Masamichi Terahata, President and CEO of JT Group in a statement.
In the tobacco business, JT Group's profit growth engine is driven by solid pricing and continued market share growth in combustible products. "We have been expanding the geographical coverage of Ploom X, and by the end of 2023, adult consumers will be able to purchase it in 13 markets," said Masamichi Terahata. In Japan, JT Group's market share in the heated tobacco stick market reached 11.4% in December 2023."
According to financial reports, Ploom X has experienced positive changes in transaction volume over the past year, particularly due to its growing market share in Japan. The introduction of Ploom X ADVANCED in November further enhanced consumer adoption and retention, leading to a continuous increase in market share in Japan's highly competitive heated tobacco systems (HTS) sector, reaching 11.4%.
Due to the success of Ploom X in Japan, RRP Group (Reduced-Risk Products) has experienced a strong increase in sales volume. In 2023, Ploom X will be introduced in 11 new markets, making it available in a total of 13 markets worldwide.
In the future, the group's vision for the Ploom product line and even heated tobacco products includes:
- In Japan and existing markets, the goal is to continue increasing market share to support overall transaction volume.
- To accelerate investment in the HTS (Heat-not-Burn Tobacco System) sector, Ploom X will be introduced to more markets to achieve an 80% coverage rate of industry transaction volume. By the end of 2025, geographical expansion will allow product coverage for approximately 80% of global HTS demand.
By the end of 2026, Ploom X will be available in over 40 markets. Masamichi Terahata, CEO of JT Group, emphasized that the company will prioritize investment in heat-not-burn tobacco sticks to support the expansion of Ploom X, both in terms of market share and geographical coverage. The company's objective is to introduce Ploom X to over 40 markets by the end of 2026. Combustible products, on the other hand, will continue to drive profitability by increasing market share and revenue.
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