JTI reports turnover increase of 26.5%

Japan Tobacco International (JTI), one of the leading players on the local cigarettes market, has posted a 26.5 % increase in turnover for the first quarter of 2007, against the same time last year, though the volume of cigarettes sold during the same period fell 8.5%. The decline in volumes sold started to become apparent last year, when cigarette prices went up. JTI posted a 20% turnover increase last year, to 270 million euros (950.6 million RON), according to preliminary information from the company. “Last year, cigarette prices saw record increases, of over 30%, following the increase in excises, which included a vice tax. Therefore, prices of cheaper cigarettes saw larger increases than more expensive brands causing the margin between the two segments to narrow. As a result, there was a decline in the volume of legal cigarettes sold, with smuggling increasing,” stated Martin Southgate, general manager and vice-president of JTI Romania.