Excluding the impact of currency, adjusted operating companies income margin was down by 0.4 percentage points to 47.2%, as detailed on Schedule 11, or up by 1.2 points to 48.6% June year-to-date, as detailed on Schedule 15.

PMI’s cigarette shipment volume in Asia decreased by 0.7%. Excluding the Japan hurdle, PMI’s cigarette shipment volume in Asia increased by 7.4%, predominantly due to growth in Indonesia, Japan, Thailand and Vietnam, partially offset by a decline in the Philippines.

Shipment volume of Marlboro was down by 0.9%, or up by 8.2% excluding the Japan hurdle, driven by growth in Indonesia, Japan and Vietnam.

Asia Key Market Commentaries

In Indonesia, the total cigarette market was up by 6.9% to 79.6 billion units, driven by growth across all price segments. PMI’s shipment volume grew by 17.8%. PMI’s market share was up by 3.1 points to 33.5%, driven notably by Sampoerna A in the premium segment, up by 1.2 points to 13.1%, and mid-price U Mild, up by 1.0 point to 2.8%. Marlboro’s market share was up by 0.3 points to 4.5% and its share of the “white” cigarettes segment increased by 4.1 points to 68.9%. Market share of Dji Sam Soe was unchanged at 7.4%.

In Japan, the total cigarette market increased by 9.5% to 49.4 billion units, mainly reflecting a favorable comparison with the second quarter of 2011 which experienced a prolonged disruption of PMI’s principal competitor’s supply chain following the tragic events of March that year. PMI’s shipment volume was down by 19.6% in the quarter, primarily reflecting an unfavorable comparison with the second quarter of 2011. Excluding the additional volume of 6.3 billion units associated with the second quarter of 2011, PMI’s shipment volume increased by 19.2%. PMI’s market share was down by 14.2 points to 27.8% in the quarter. Share of Marlboro was down by 3.9 points to 12.5%, but up by 0.1 point compared to its 2011 exit share, supported by the introduction of Marlboro Black Menthol Edge 1 and Marlboro Black Menthol Edge 8 in May. Share of Lark was down by 6.0 points to 8.4%, down by 0.2 points compared to its 2011 exit share. Share of Philip Morris was down by 1.7 points to 2.3%, and by 0.2 points compared to its 2011 exit share.

In Korea, the total cigarette market was down by 0.7% to 22.8 billion units. PMI’s shipment volume decreased by 6.8%, reflecting the impact of PMI’s price increases in February 2012. PMI’s market share in the quarter of 18.8% was down by 1.1 points, with Marlboro and Parliament down by 0.9 and 0.5 points to 7.7% and 6.2%, respectively, partly offset by Virginia Slims, up by 0.5 points to 4.0%.

In the Philippines, the total cigarette market decreased by 2.2% to 24.7 billion units. PMI’s shipment volume was down by 4.1%, mainly reflecting the impact of PMI’s price increases in January 2012. PMI’s market share declined by 1.9 points to 92.6%. Marlboro’s market share was down by 0.6 points to 20.6%. Market share of Fortune was up by 4.1 points to 50.9%.

LATIN AMERICA & CANADA REGION

In Latin America & Canada, net revenues were essentially flat at $829 million, despite unfavorable currency of $51 million. Excluding the impact of currency, net revenues increased by 6.3%, reflecting favorable pricing of $80 million, partially offset by unfavorable volume/mix of $28 million. June year-to-date, net revenues, excluding currency, were up by 5.8%, driven by higher pricing of $97 million, marginally offset by unfavorable volume/mix of $3 million.

If you liked this article you might like

Japan Tobacco Inks Billion-Dollar Deals in Southeast Asia to Keep the Fire Alive

5 of the Most Popular Stocks Owned by Wall Street's Elite, Revealed

From the Marlboro Man to Vaping, Here Are the Events that Shaped Big Tobacco

Vaping in Asia Could Save Big Tobacco

Philip Morris Faces Backlash in India Over Marketing Tactics