26/12 Q2 results: Company raises DPS forecast

Research evidence excerpt

26/12 Q2 results: Company raises DPS forecast

Global Markets Research

30 July 2026Japan Tobacco

2914.T 2914 JP / EQUITY: JAPAN FOOD, BEVERAGES & TOBACCO

Rating26/12 Q2 results: Company raises DPS forecast Neutral

Target price JPY 6,100Quick Note

Closing price

30 July 2026 JPY 6,665First impression positive: Company raises full-year guidance above our forecasts

Japan Tobacco announced 26/12 Q2 results after the close on 30 July. We take a positive (Note: Quick Note reports are not a

view. Q2 adjusted operating profits were better than we had expected, and the company vehicle for changes to ratings, target

also raised its adjusted operating profit guidance and its dividend forecast. We regard this prices, or earnings forecasts)

as a strong set of results, as we still see upside versus revised guidance.

Q2 adjusted operating profits totaled ¥346.2bn (up 29% y-y, up 18% on a forex-neutral

basis). Price hikes drove earnings and offset higher sales promotion costs for Ploom,

among other costs. There were major contributions to profit growth from the Philippines, Research Analysts

Russia, Turkey, the UK, and the US. Overall profits beat our forecast of ¥306.3bn. Price Japan food

hikes in Russia, Turkey, the US, and elsewhere in EMA provided a greater-than-expected Makoto Morita - NSC

boost. The dent to profits in Q2 from the disappearance of distribution inventory stockpiling makoto.morita@nomura.com

in Q1 and the pushback of sales promotion costs was also smaller than we had expected. +81 3 6703 1211

The company raised its full-year adjusted operating profit guidance from ¥955.0bn to

¥1,035.0bn and its DPS forecast from ¥242 to ¥272. It has factored in price hikes in the

Philippines and UK as well as forex effects stemming from a correction in hyperinflation in