>>20530400Japan Tobacco has a diversified product portfolio and a diversified customer base. These protect the company from changes in consumer tastes.
Firstly, it produces more than tobacco products: it also makes food and pharmaceuticals. Secondly, it sells numerous brands of cigarette in a variety of countries. Thirdly, it sells tobacco products in several non-cigarette forms: pipes, cigars, kretek, vape, smokeless, and heat-not-burn.
The company also has a strong balance sheet so that it can survive difficult periods. Its current ratio is 1.8 and its debt-to-equity ratio is 0.25. It has approximately one trillion yen that can be deployed to maintain its position in the market.
