Tobacco carries the gains
Japan Tobacco Inc. (TSE: 2914) reported consolidated IFRS results for the first nine months of FY12/2026, January 1 to September 30, 2026, on October 29, 2026. The pharmaceutical business, transferred to Shionogi last year along with JT's stake in Torii Pharmaceutical, is classed as a discontinued operation, so revenue and operating profit are compared on a continuing basis. Tobacco revenue rose 14.0% to ¥2,870,358 million and its adjusted operating profit 21.1% to ¥1,005,408 million. By cluster, own-brand tobacco revenue in EMA (Africa, the Middle East, Eastern Europe, the Americas and duty-free) grew 18.0% to ¥1,413,203 million with adjusted operating profit up 24.2% to ¥476,314 million; Asia's adjusted operating profit rose 29.6% to ¥253,142 million and Western Europe's 9.7% to ¥275,951 million. Processed Food revenue grew 3.6% to ¥119,378 million. Comprehensive income fell 30.6% to ¥511,760 million on currency translation, and basic earnings per share were ¥348.60 against ¥288.24.
Cash flow strengthens
Operating cash flow rose to ¥731.2 billion from ¥287.0 billion, investing outflows narrowed to ¥94.9 billion and financing outflows, mainly dividends and bond redemptions, were ¥491.3 billion. Cash and equivalents stood at ¥887.3 billion. Total assets were ¥8,437,531 million and the ratio of equity attributable to owners rose to 48.8% from 48.5%.
Forecast raised, dividend kept at ¥272
Reflecting results so far, JT raised its FY12/2026 forecast: revenue to ¥3,903,000 million (+12.6%) from ¥3,885,000 million, adjusted operating profit to ¥1,079,000 million (+21.9%) from ¥1,035,000 million, operating profit to ¥1,041,000 million (+20.1%) and profit attributable to owners to ¥662,000 million (+29.8%) from ¥644,000 million. The dividend plan is unchanged at an interim ¥136 and year-end ¥136, an annual ¥272 against ¥234, set at a 73.2% payout of profit adjusted for the Canadian tobacco-litigation settlement payments.
| Metric | 9M FY12/2026 | 9M FY12/2025 | Change |
|---|---|---|---|
| Revenue (¥ million) | 2,991,382 | 2,634,028 | +13.6% |
| Adjusted operating profit (¥ million) | 972,383 | 799,532 | +21.6% |
| Operating profit (¥ million) | 947,710 | 762,935 | +24.2% |
| Pre-tax profit (¥ million) | 877,095 | 707,162 | +24.0% |
| Net profit attrib. to owners of parent (¥ million) | 618,892 | 511,749 | +20.9% |
| Comprehensive income (¥ million) | 511,760 | 737,512 | -30.6% |
| EPS (¥) | 348.60 | 288.24 | +20.9% |
| Tobacco — revenue (¥ million) | 2,870,358 | 2,516,859 | +14.0% |
| Tobacco — adjusted operating profit (¥ million) | 1,005,408 | 830,214 | +21.1% |
| Processed Food — revenue (¥ million) | 119,378 | 115,247 | +3.6% |
| Processed Food — adjusted operating profit (¥ million) | 5,983 | 5,548 | +7.8% |
| Total assets (¥ million) | 8,437,531 | 8,419,240 | +0.2% |
| Equity attrib. to owners of parent (¥ million) | 4,120,946 | 4,086,933 | +0.8% |
| Equity ratio | 48.8% | 48.5% | +0.3 pt |
| FY12/2026 guidance — revenue (¥ million) | 3,903,000 | — | +12.6% |
| FY12/2026 guidance — adjusted operating profit (¥ million) | 1,079,000 | — | +21.9% |
| FY12/2026 guidance — operating profit (¥ million) | 1,041,000 | — | +20.1% |
| FY12/2026 guidance — net profit (¥ million) | 662,000 | — | +29.8% |
| Annual dividend per share (¥) | 272.00 | 234.00 | +16.2% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.