Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Altria tops first quarter sales on higher pricing, robust demand for smokeless alternatives

Published 04/25/2024, 08:22 AM
Updated 04/25/2024, 11:50 AM
© Reuters. FILE PHOTO: A woman poses with a cigarette in front of Philip Morris International logo in this illustration taken July 26, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Corrects paragraph 3 to replace net revenue of $5.58 billion with revenue net of excise taxes of $4.72 billion)

(Reuters) -Altria Group topped quarterly sales expectations on Thursday, driven by higher pricing and rising demand for alternatives to conventional tobacco products.

Like other tobacco giants, Altria (NYSE:MO) has been revamping its portfolio of products to keep up with consumers switching from traditional tobacco products to vapes or other alternatives and as inflation-hit smokers switched to cheaper brands.

The company's revenue net of excise taxes came in at $4.72 billion in the first quarter, topping analyst expectations of $4.71 billion, while profit on an adjusted basis came in line with expectations.

Last year, Altria launched a lower-priced version of its flagship Marlboro brand and finalized its acquisition of e-cigarette startup NJOY Holdings, expanding its portfolio to include pod-based vapes.

Shipment volumes of Altria's nicotine pouch, On! increased by 32.1% compared to 25.2% in the previous quarter.

The results echo peer Philip Morris International (NYSE:PM), which reported upbeat quarterly results, helped by robust demand for its heated tobacco product and Zyn nicotine pouches.

Earlier this year, Altria cut its stake in top beer maker Anheuser-Busch InBev.

Shares of Altria were up marginally in premarket trade.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.