(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.