Weak transformation! Altria Q2 revenue up 1.2%, driven mainly by nicotine pouches and cigarette pric

On Tuesday, Altria, the parent company of Marlboro and e-cigarette brand NJOY, announced its Q2 earnings report, showing a 1.2% increase in net revenue for the second quarter, reaching $5.44 billion, slightly above the average analyst estimate of $5.43 billion from Refinitiv data. Excluding special items, Altria's profit for the quarter was $1.31 per share, exceeding Wall Street's expectation of $1.30.
Regarding the performance slightly exceeding Wall Street expectations, Altria stated that this was mainly due to increased demand for nicotine pouches and a high pricing strategy. Specifically, the on! brand nicotine pouch shipments increased by 47.8% compared to the same period last year.
Facing ongoing inflation and a trend of consumers shifting to cheaper cigarette brands, Altria has relied on raising prices for its premium Marlboro product line sold in the U.S. to counter consumer loss. The company stated that Marlboro's share in the premium market segment reached 58.6%.
In a press release, Altria noted that in June of this year, it completed the acquisition of e-cigarette company NJOY Holdings to cater to consumer demand for alternatives to traditional combustible cigarettes. Reflecting on the annual profit forecast, Altria expects adjusted earnings for the year to be between $4.89 and $5.03 per share, down from the previous forecast of $4.98 to $5.13, reflecting Altria's plan to increase investment in NJOY ACE in the U.S.