Tobacco Statistics
Quarterly report
2020
Jan to Apr
Focus on Tobacco Manufacturers and Leaf Dealers
1st Quarter Results
- Cigarette Shipment Volume (million units): 157,018 (-4.4%)
- Heated Tobacco Shipment volume (million units): 16,727 (+45.5%)
- Combined Shipment Volume (million units): 173,745 (-1.2%)
- Main Cigarette Market: European Union (25.9%)
- Main Heated Tobacco Market: East Asia & Australia (42.6%)
- Highest Market Growth (Volume): Eastern-Europe (+17.9%)
- Net Revenue: US$ 7.153 billion (+6%)
- Operating Income: US$ 2.789 billion (+36%)
Philip Morris International (PMI)
1st Quarter Overview
The Company experienced a limited impact of the COVID-19 pandemic on its operations and performance due to government restrictions only having been implemented at the end of March on PMI’s main markets. Total IQOS users reached 14.6 million at the end of the quarter. The Company highlights that due to loss of disposable income and the increase of unemployment rates may cause a temporary effect on the tobacco market. PMI main business impacts: Reduced Duty-Free Sales due to reduced air travel (represents 4% of total revenue of 2019); Delayed IQOS User Acquisition lockdown prevents the active engagement with smokers; Indonesia - Minimum Retail Price Delay will impact tobacco prices at the low end of the market.
Altria
1st Quarter Overview
Altria announced the reopening of the Richmond manufacturing facility and the company has not suffered any disruption of their supply chain or distribution system. Altria is considering the macro economic risks to tobacco consumers and their spending habits the company identified several main negative drivers depth and duration of higher unemployment, the COVID-19 impact. While lower gasoline prices, increased unemployment benefits and government stimulus payments may soften the impact of the economic crisis. The fact that the stores in which tobacco is sold were classified as “essential” guaranteed that sales remained stable throughout the lockdown.
1st Quarter Results
- Cigarette Shipment Volume (million units): 25,024 (+6.1%)
- Cigar Shipment volume (million units): 432 (+13.1%)
- Net Revenue: US$ 5.046 billion (+15%)
- Net Revenue Smokeable Product: US$ 4.328 billion (+16%)
- Net Revenue Oral Products: US$ 570 million (11.3%)
1st Quarter Results
- International Cigarette Shipment Volume (million units): 104.1 (-0.6%)
- Japan Cigarette Shipment Volume (million units): 17.2 (-4.2%)
- Revenue: US$ 4.86 billion (+2.8%)
- Operating Profit: US$ 1.21 billion (-29.4%)
Japan Tobacco International (JTI)
1st Quarter Overview
JTI classified the quarter results as strong and attributed to the growing international business and its pricing gains the responsibility for it. The company also announced it will not be revising its forecast for the full-year 2020. JTI has not experienced any shortage of supply. While the inventory levels change from country to country there are approximately 2months worth of supplies in every location.
Swedish Match
1st Quarter Overview
Swedish Match reported an important revenue increase in the first-quarter of 2020. With revenue and operating profit increasing by 25%. The company had to close its Dominican Republic manufacturing facility for two-weeks but the unit is already operating. Some units are still operating with reduced staff but Swedish Match has been capable of handling the inventory management across the units. Smokefree products are responsible for the main share of the company’s revenue generating operations accounting for 62% of the sales and 72% of the operating profit. The segment includes snus, nicotine pouches, moist snuff, US chewing tobacco, chew bags and tobacco bits.
1st Quarter Results
- Sales: US$ 406.7 million (+24%)
- Operating Profit: US$ 160.9 million (+25.3%)
- Company Main Segment by Revenue: Smokefree (62%)
- Smokefree Segment Revenue Growth: 35%
- U.S. Smokefree Revenue Growth: 82%