Altria Group's Q4 Earnings Impacted by Declining Cigarette Sales

Business by 2FIRSTS.ai
Feb.01.2024
Altria Group's Q4 Earnings Impacted by Declining Cigarette Sales
Altria Group's Q4 net income is predicted to reach $5.1 billion, with a 2% decrease from last year.

According to a report by Barron's on January 31, tobacco industry giant Altria Group is set to release its fourth-quarter financial earnings. Analysts predict that Altria Group's net income will reach $5.1 billion, which is similar to the figure for 2022. Net income for the year is expected to decline by 2% compared to the same period last year, amounting to $2.1 million, with earnings per share at $1.18.

 

Despite more optimistic expectations for fourth-quarter performance compared to the third quarter, cigarette prices have increased by 8.7% and sales volume has dropped by 11.6% compared to the same period last year. The tobacco department's net income has declined by 5.3% compared to last year, highlighting the sales pressure. Many consumers are switching to alternative products such as heated tobacco, e-cigarettes, and oral nicotine pouches.

 

The weak sales performance highlights the pressure faced by tobacco companies, as British American Tobacco and Altria Group announced a $32 billion cut in cigarette brands in December last year, triggering a major industry sell-off. Altria Group's sales volume for oral tobacco products declined by 3.3% compared to the previous year, but the higher prices offset this loss, resulting in a 2.3% increase in net income for the sector.

 

The Chief Financial Officer of the company, Saul Mancozo, has stated that inflation, declining consumer income, and the emergence of illicit e-cigarettes have had an impact on the customer base. Despite a low stock price, Altria Group has managed to boost shareholder returns through share repurchases and dividend payments. In the first nine months of 2023, the company repurchased 16.3 million shares, returning $732 million in cash to shareholders, and is expected to complete an additional $268 million worth of stock repurchases by the end of 2023.

 

Further Exploration and Development

 

Altria Group is a company known for its reliable dividend returns, having experienced 54 consecutive years of dividend growth. The management has stated their plans for a single-digit annual growth, and has made an optimistic projection for the full-year earnings per share in 2023, expecting it to grow between $4.91 and $4.98, representing a 1.5% to 3% increase.

 

Despite the limited performance of Altria Group's stock due to rising commodity prices, Wall Street analysts remain optimistic towards the stock. The average target price is $47, representing an almost 18% increase from the current $40. Goldman Sachs analysts predict that Altria Group will offset declining sales volumes with strong price increases in the fourth quarter, but they also point out that the stock may continue to trade within a range until the trend of declining sales stabilizes.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
German prosecutors and customs authorities are conducting a criminal investigation into an alleged cross-border organised vape network. Authorities say that between January 2024 and March 2025, four employees of an unnamed Chinese e-cigarette manufacturer allegedly built a network of sales agents and wholesalers that brought more than 7.6 million nicotine disposable vapes into Germany, causing an estimated €33.3 million in excise-tax losses. The manufacturer has not been named. Some products visible in enforcement images have packaging resembling products from FUMOT’s portfolio. European regulatory records from 2024, FUMOT’s public overseas-sales materials and records involving German vape importer and distribution company Zamu-Pro GmbH also show FUMOT/RandM products and German distribution activity during the period covered by the investigation.
Sep.21
Iowa Sets November 16 Vape Directory Launch: Unlisted Products Face Sales Ban, Manufacturers $1,000 Daily Fines per Product
Iowa Sets November 16 Vape Directory Launch: Unlisted Products Face Sales Ban, Manufacturers $1,000 Daily Fines per Product
Iowa plans to publish its first vapor products directory on November 16, 2026, after which products not listed will be prohibited from sale or offer for sale in the state. The Department of Revenue expects to begin penalty enforcement on December 17, following an initial 21-business-day period focused on compliance education. Under House File 2677, retailers, distributors and wholesalers selling unlisted products face civil penalties of $300 per product per day, while manufacturers face $1,000 per product per day. Eligibility extends to FDA-authorized products and certain products meeting historical marketing and pending PMTA requirements. The directory program resumed after a federal appeals court vacated a preliminary injunction in July 2026.
Regulations
Nov.05
Special Report|Virginia Vape Directory Shows Contrast Between Vuse and JUUL Pod Systems and CrossBar 20K, Loon Flavored Disposables
Special Report|Virginia Vape Directory Shows Contrast Between Vuse and JUUL Pod Systems and CrossBar 20K, Loon Flavored Disposables
A 2Firsts analysis of Virginia's liquid nicotine and vapor product certification directory identified 213 product records from 15 manufacturers. Companies associated with BAT, Altria, Imperial Brands, JTI and JUUL account for 127 entries. The directory also includes independent brands CrossBar 20K, Loon and Breeze. CrossBar advertises a 13mL disposable capable of up to 20,000 puffs, while Loon has 16 disposable entries featuring fruit, cooling and beverage-related flavors. Of all records, 120 are labeled as under FDA PMTA review. Virginia introduced revised penalties on October 1, 2026, including a minimum first-violation civil penalty of $5,000 per unlisted product, alongside new retail tobacco permitting requirements.
Regulations
Oct.30
Texas Extends Tobacco Tax Interpretation to a 6-Methylnicotine Product, Citing VELO Ruling
Texas Extends Tobacco Tax Interpretation to a 6-Methylnicotine Product, Citing VELO Ruling
The Texas Comptroller of Public Accounts ruled in September 2026 that a combustible product made with non-tobacco plant material and 6-methylnicotine (6-MN), a synthetic nicotine analog, qualifies as a taxable tobacco product. The applicant said the product contained neither tobacco leaf nor measurable conventional nicotine. The determination applies reasoning from a May Texas Supreme Court decision involving VELO nicotine pouches, finding that the plant material and 6-MN together perform the functions of tobacco in a conventional smoking product. The ruling carries applicable tax, licensing and reporting obligations but is limited to the facts submitted by the taxpayer. It does not establish a blanket tax classification for all 6-MN products or extend the same conclusion to e-cigarettes.
Regulations
Nov.06
Turning Point Brands Q3 Modern Oral Net Sales Rise 103% to $74.4 Million as Attributable Profit Falls 81%
Turning Point Brands Q3 Modern Oral Net Sales Rise 103% to $74.4 Million as Attributable Profit Falls 81%
Turning Point Brands (TPB) reported third-quarter 2026 Modern Oral net sales of $74.4 million on November 9, up 102.9% year over year and representing 49.2% of consolidated net sales. Total company net sales rose 27.0% to $151.1 million, while net income attributable to TPB declined 81.4% to $3.93 million. The company is expanding the US retail presence of its FRE and ALP nicotine pouch brands and expects its Modern Oral chain-store footprint to grow by more than 70% during 2026. Selling, general and administrative expenses increased 69.1% to $75.3 million, while PMTA-related expenses reached approximately $3.15 million and manufacturing start-up costs totaled about $593,000. ALP plans to open a branded pop-up in New York City's SoHo neighborhood on November 13, alongside a marketing campaign extending into January 2027. TPB owns 50% of ALP but consolidates the venture in its financial statements.
company
Nov.11
Australia Adds 6-Methylnicotine to Schedule 9 Prohibited Substances, Effective October 1
Australia Adds 6-Methylnicotine to Schedule 9 Prohibited Substances, Effective October 1
Australia's Therapeutic Goods Administration published a final decision on September 25 to classify 6-methylnicotine as a Schedule 9 prohibited substance under the Poisons Standard, effective October 1, 2026. TGA said the chemical has been reported in e-cigarette liquids sold in Australia and marketed as nicotine-free or nicotine alternatives, while evidence also indicates its use in preparations such as oral pouches. The government originally proposed a Schedule 7 classification but ultimately adopted the stricter Schedule 9 designation, citing acute toxicity, dependence risk, use in unapproved consumer products and misleading marketing.
News
Sep.29 by 2Firsts Perspectives