(Reuters) - Tobacco giant Altria Group (NYSE:MO) on Tuesday edged past Wall Street revenue and profit expectations, buoyed by demand for spitless nicotine pouches and higher pricing.
Altria, which has been raising prices to counter the defection of consumers to cheaper brands in the face of persistent inflation, has banked on demand for its premium offerings from the Marlboro brand of cigarettes, which it markets and sells in the U.S.
The company said Marlboro's share of the premium segment stands at 58.6%.
Altria, like peer Philip Morris (NYSE:PM), also benefited from strong demand for spitless nicotine pouches, which are an alternative to traditional moist chewing tobacco.
Shipment volumes for Altria's on! nicotine pouches grew 47.8% in the quarter from a year earlier.
In June, the company said it completed its acquisition of e-cigarette startup NJOY Holdings, adding pod-based vape NJOY ACE to its portfolio, at a time when consumers are increasingly looking for alternatives to traditional combustible cigarettes.
Net revenue rose 1.2% to $5.44 billion in the second quarter, compared with the average analyst estimate of $5.43 billion, as per Refinitiv data.
Excluding items, Altria reported quarterly profit of $1.31 per share, compared with Wall Street expectations of $1.30 per share.
The company reaffirmed its annual profit forecast which it had lowered in June to reflect planned investments NJOY ACE in the U.S. It sees annual adjusted profit between $4.89 and $5.03 per share, compared with an earlier forecast of $4.98 to $5.13.