Altria sees weak annual revenue as vape competitors heats up

(Reuters) – Marlboro maker Altria stated on Thursday its annual adjusted revenue might be decrease than estimated, citing rising competitors from rival vapes available in the market and persistently weaker demand for cigarettes.

Shares of the corporate, which rose practically 30% in 2024, have been down about 2% in premarket buying and selling.

Altria and its friends have been grappling with a long-term decline in tobacco gross sales resulting from shoppers switching to cheaper manufacturers or options equivalent to vapes and stricter-than-ever laws.

The Richmond, Virginia-based firm’s home cigarette cargo quantity decreased by 8.8% within the fourth quarter ended Dec. 31, in contrast with a 7.6% decline a 12 months in the past.

U.S. regulators in January proposed to cap nicotine ranges in cigarettes – a transfer that would eradicate most cigarettes available in the market – although it stays unclear if it is going to be carried out.

Increased investments to diversify its portfolio in direction of tobacco options have additional led to elevated promotional bills.

In the meantime, President Donald Trump’s administration lately withdrew plans for a ban on menthol cigarettes, which may have pushed heavy losses for the trade.

A U.S. commerce tribunal ordered a ban on imports of vaping gadgets and cartridges from Altria’s NJOY, made in China and Malaysia, following a patent dispute with Juul Labs.

The ban will take impact by March 31, or sooner if authorised by the Commerce Consultant, Altria stated.

The corporate expects annual adjusted earnings within the vary of $5.22 to $5.37 per share, the midpoint of which is beneath analysts’ common estimate of $5.35, in accordance with information compiled by LSEG.

Altria’s quarterly income, web of excise taxes, got here in at $5.15 billion, surpassing estimates of $5.05 billion.

Its adjusted revenue of $1.29 per share for the quarter was according to estimates.

Altria additionally introduced a $1 billion share repurchase program.

(Reporting by Anuja Bharat Mistry in Bengaluru and Emma Rumney in London; Enhancing by Shreya Biswas)