Altria Releases Financial Report for 2024 and Q4, Net Revenue down 1.9% YoY, NJOY Performs Well

Recently, Altria released its financial report for the fourth quarter of 2024. The company reported a full-year net income of $24.018 billion, a decrease of 1.9% compared to the previous year. After deducting excise taxes, the revenue was $20.444 billion, a slight decrease of 0.3%. The fourth quarter net income was $5.974 billion, with revenue after deducting excise taxes at $5.106 billion, a 1.6% increase compared to the same period last year.

Altria's subsidiary NJOY brand has shown strong performance, with e-cigarette pod shipments totaling 12.8 million units in the fourth quarter, a 15.3% increase from the previous year. Device shipments totaled 1.1 million units, a 22.2% increase from the previous year. For the full year of 2024, pod shipments are projected to reach 46.6 million units, while device shipments are expected to reach 5 million units.

In response to the JUUL lawsuit, the United States International Trade Commission (ITC) has ruled in favor of JUUL's patent claims. This decision could potentially lead to a ban on the import and sale of NJOY's main product, ACE, after March 2025. Altria has stated that they are currently working on developing alternative solutions to mitigate potential risks.

The nicotine pouch brand "on!" as a new type of tobacco product, continues to grow its market share, with a 40.2% year-on-year increase in shipments.

On the other hand, Altria's traditional tobacco business continues to be under pressure, with shipments of combustible tobacco products declining by 10.2% for the year, primarily due to the proliferation of illegal e-cigarettes and pressure on consumer disposable income. The main cigarette brand Marlboro's market share slightly decreased to 41.7%, but it still maintains a leading position of 59.3% in the premium cigarette market.

Furthermore, Altria announced progress on its 2028 goals, with new tobacco revenue reaching $2.8 billion in 2024, a 7.7% increase from the 2022 baseline. However, there is still a gap to reach the $5 billion goal by 2028. Altria acknowledged that illegal e-cigarette activities were hindering goal attainment and is currently reassessing its strategy.

Altria's CEO, Billy Gifford, stated:

In 2024, we solidified our market position through core brand strengths and strategic investments. Despite facing challenges in the external environment, we remain confident in the long-term opportunities for our transition to smokeless products.