JT takes $2.6bn hit, settles Canadian tobacco claims

Japan Tobacco (JT) announced a $2.6 billion (375.6 billion yen) charge as it has agreed to a comprehensive settlement resolving all smoking and health claims against its Canadian subsidiary, JTI-Macdonald Corp. The move retroactively impacts JT's 2024 consolidated financial results as a one-time operating expense. The settlement, which involves JTI-Macdonald alongside Rothmans, Benson & Hedges Inc. and Imperial Tobacco Canada Limited, was approved by the Ontario Superior Court. The involved payments will be made to claimants over an estimated 20-30 year period. While the settlement resolves significant legal uncertainties, JT is revising its 2024 earnings to reflect the charge and expects the full-year results for 2025 to increase in operating profit and the stock to remain stable. Japan Tobacco's FY 2025 annual dividend is expected to remain at ¥194 per share.