Japan Tobacco to Allocate ¥500 Billion for Tobacco-Heating Products, Including ¥200 Billion for Marketing
April 19, 2023
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Of that amount, ¥300 billion will be allocated to the development and production of the sticks, while ¥200 billion is designated for the marketing and promotion of the products. This move is an effort to remain competitive in the tobacco-heating market, which is rapidly growing throughout the world. Japan Tobacco ($TSE:2914) is a publicly traded company on the Tokyo Stock Exchange and is one of the largest tobacco companies in the world. It produces a variety of tobacco-related products and services, including cigarettes, cigars, pipe tobacco, and smokeless products. This move into the tobacco-heating market marks the company’s continued effort to expand its offerings and remain competitive in the global market.
Share Price
On Monday, JAPAN TOBACCO stock opened at JP¥2815.0 and closed at JP¥2827.5, up by 0.7% from the previous closing price of JP¥2807.5. This is part of the company’s effort to diversify its product portfolio, capitalizing on the growing trend in smokeless tobacco products. The move aligns with its goal to remain relevant in the market and maintain its leading position. It also demonstrates JAPAN TOBACCO’s commitment to catering to the needs of its customers, as more consumers are seeking alternatives to smoking. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Japan Tobacco. More…
| Total Revenues | Net Income | Net Margin |
| 2.66M | 442.72k | 16.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Japan Tobacco. More…
| Operations | Investing | Financing |
| 483.8k | -101.82k | -306.18k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Japan Tobacco. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.55M | 2.93M | 1.99k |
Key Ratios Snapshot
Some of the financial key ratios for Japan Tobacco are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.9% | 9.1% | 25.8% |
| FCF Margin | ROE | ROA |
| 14.5% | 11.7% | 6.5% |
Analysis
At GoodWhale, we have conducted a thorough analysis of the fundamentals of JAPAN TOBACCO. After looking at the financial statements and other business aspects, we have rated JAPAN TOBACCO as a medium risk investment. Although there is some level of risk involved in investing, we believe that the potential returns justify it. In our detailed review of the company, we have flagged two potential risks that investors should consider. These risks are highlighted in the income statement and balance sheet and we recommend registering with us to find out more. We strive to provide you with the best possible insights to help you make informed decisions about your investments. More…
Peers
The competition in the tobacco industry is fierce, with Japan Tobacco Inc. (JTI) competing against major players such as Nissin Foods Holdings Co Ltd, Kikkoman Corp, and Nestle SA. These companies are all trying to gain market share and establish themselves as the leading tobacco brand in the region. JTI, in particular, has invested heavily in research and development to produce new products and stay ahead of its rivals.
– Nissin Foods Holdings Co Ltd ($TSE:2897)
Nissin Foods Holdings Co Ltd is a leading food and beverage company in Japan. Founded in 1948, the company produces a wide range of instant noodles, frozen food, and other food items. As of 2023, Nissin Foods Holdings Co Ltd has an impressive market cap of 1.01T and a Return on Equity (ROE) of 7.41%, demonstrating the strong financial performance of the company. Nissin Foods Holdings Co Ltd has continued to grow and expand its product portfolio over the years, offering customers a wide selection of food products across Japan and around the world.
– Kikkoman Corp ($TSE:2801)
Kikkoman Corp is a Japanese food manufacturer, best known for its soy sauce products. Founded in 1917, Kikkoman has grown to become a major player in the global food industry. As of 2023, it has a market cap of 1.3T and a Return on Equity of 11.51%. This indicates that the company is performing well and maximizing its profits. The company’s success is attributed to its focus on bringing high-quality products to the market and its commitment to providing excellent customer service.
– Nestle SA ($BER:NESM)
Nestle SA is a multinational food and beverage company based in Switzerland. As of 2023, the company has a market cap of 300.52B, making it one of the largest food and beverage companies in the world. Nestle’s Return on Equity (ROE) is also impressive at 14.82%, meaning it has been able to effectively utilize its resources to generate a high return for its investors. The company is best known for its wide range of products, including coffee, dairy products, chocolate, and many more.
Summary
Japan Tobacco, a leading tobacco company in Japan, recently announced its plans to invest ¥300 billion into its tobacco-heating products. The company has allocated ¥200 billion of the investment to marketing the product. This move is likely indicative of Japan Tobacco’s efforts to remain competitive in the tobacco industry and capitalize on an emerging trend in the market. The company is expected to benefit from the increased product visibility and potential growth that could result from the large investment.
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