Japan Tobacco (JAPAF) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much for joining the investor meeting for Q3 2025 results of Japan Tobacco Inc. today. It's time, so let us start. But before we start, please make sure that your name on the Zoom screen is correct. Thank you very much for your cooperation. Now let me introduce our CFO, Mr. Furukawa. Good afternoon. I am Furukawa, CFO of the JD Group. Thank you for joining us today for JD Group's third quarter 2025 earnings briefing. I will begin by explaining our nine-month consolidated result for the fiscal year 2025. Please see slide four. To begin with, let me clarify how the financial figures are presented. As announced during the second quarter earnings briefing, starting from the third quarter, we will treat the pharmaceutical business as a discontinued operation in accordance with IFRS. As a result of this reclassification, results and forecast figures for the pharmaceutical business for the current fiscal year are presented as a single line under profit from discontinued operations. In this presentation, to provide a clearer understanding of our current and future business performance, we will explain each P&L indicator on the continuing operations basis. Now, I will move on to explain the consolidated results. As shown on the slide, all indicators and the nine-month consolidated results showed significant growth. AOP at constant FX, our primary performance indicator, increased by an impressive 27.2% year-on-year, driven by a strong organic performance in the tobacco business, boosted by the contribution of the Vector Group acquisition in the USA. The foreign exchange impact on AOP remains negative, mainly due to the depreciation of emerging currencies against the Japanese yen. Operating profit increased by 20.8% year-on-year, driven by the increase in AOP, pa...