Japan Tobacco Raises Full-Year Profit Forecast to Record ¥662 Billion as Nine-Month Net Profit Jumps 21%

Japan Tobacco (JT) raised its full-year profit forecast to a record ¥662.0 billion after nine-month net profit climbed 21.0% to ¥618.9 billion, as price increases and growth in its Ploom heated-tobacco products offset lower cigarette volumes, Tobacco Insider reported on Thursday.

Profit and revenue climb

For January to September 2026, JT’s revenue rose 13.6% to ¥2,991.4 billion, while adjusted operating profit (AOP) increased 21.6% to ¥972.4 billion, according to the figures. At constant exchange rates, AOP was up 16.9% to ¥934.7 billion. Operating profit rose 24.2% to ¥947.7 billion.

In the third quarter alone, revenue grew 6.1% to ¥1,005.3 billion, AOP rose 13.0% to ¥310.7 billion and net profit increased 6.0% to ¥187.1 billion.

Investing.com reported that a weaker yen added ¥37.7 billion to nine-month profit growth, while a higher corporate income tax bill weighed on the result by ¥61.3 billion.

Pricing and Ploom drive growth

Chief Financial Officer Hiromasa Furukawa told analysts that price and mix contributed 9.6% to growth, with “robust pricing continuing to be the primary growth driver” across many markets, according to an Investing.com transcript of the earnings call. Pricing and mix added ¥228.5 billion to tobacco AOP over nine months.

Volumes moved the other way. Third-quarter total tobacco volume fell 2.5% to 151.4 billion units, with combustible cigarettes down 3.2%. Reduced-risk product volume, however, rose 26.6% to 4.8 billion units in the quarter, and 31.1% to 13.2 billion units over nine months. JT’s heated-tobacco share in Japan reached 17.4% in the third quarter, up from 15.7% a year earlier, Tobacco Insider said.

Furukawa said Ploom’s category share across its 13 initial heated-tobacco markets reached 11.6% as of August.

Full-year forecast raised

JT now expects 2026 revenue of ¥3,903.0 billion, up from ¥3,885.0 billion previously, and AOP of ¥1,079.0 billion, up from ¥1,035.0 billion. Its net profit forecast was lifted by ¥18.0 billion to ¥662.0 billion, which would be 32.6% higher than last year. The annual dividend forecast was kept at ¥272 per share.

The company cut its free cash flow forecast to ¥596.0 billion from ¥651.0 billion, reflecting payment for fine-cut tobacco brands acquired from Scandinavian Tobacco Group, according to Tobacco Insider.

What’s next

Management said on the call that growth in volume, revenue and profit is expected to slow in the fourth quarter, as previously anticipated, with costs higher than in the third quarter, partly due to the timing of marketing spending, Investing.com reported. Deputy CEO Nobuya Kato said affordability was declining in Russia after price and tax increases, and that JT plans a new value-segment product there.

JT shares were last quoted at ¥7,401, up 0.94%, according to Investing.com.

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