Altria's Q3 Report: Decline in Revenue, E-cigarette Business Growth
On October 26th, Altria announced its financial report for the third quarter, reporting a net revenue of $6.28 billion, a decrease of 4.1% compared to the same period last year. After deducting consumption tax, the company's revenue stood at $5.28 billion, a decrease of 2.5%. The net profit for this quarter was $2.17 billion, showing a 100% increase compared to the previous year.
In September 2023, the company reported a net income of $18.5 billion, representing a decrease of 2.5% compared to the previous year. After deducting the consumption tax, the company's revenue stood at $15.4 billion, experiencing a decline of 0.8%.
The e-cigarette and oral tobacco industry is expected to experience continued growth.
In a statement, Altria expressed that since the completion of the acquisition of Njoy, they have strengthened NJOY's global supply chain to provide sustainable support for the expected sales growth related to the expansion plan of NJOY ACE. It is expected that there will be no capacity restrictions when implementing the initial expansion plan. In addition, they are filling retail inventory gaps and expanding the distribution of ACE. By the end of 2023, the total distribution of ACE will reach 70,000 stores, accounting for approximately 70% of e-cigarette sales in the US multi-channel and convenience channels, and 55% of cigarette sales. In the third quarter, the shipment volume of NJOY ACE was approximately 7.5 million units.
In its announcement, Altria stated that its oral tobacco products division had a retail share of 42.1% in the third quarter. The total share of nicotine pouches in the oral tobacco category in the US was 6.9%, showing a year-on-year increase of 1.7% and maintaining steady growth. Moreover, the market share of nicotine pouches grew to 32.3% in the US oral tobacco category, with the nicotine pouch brand ON! experiencing a year-on-year growth of 9.8%.
In the first nine months, the retail share of the oral tobacco products division was 43.7%. The total share of nicotine pouches in the oral tobacco category in the United States was 6.8%, representing a growth of 2.1%.
Billy Gifford, Chief Executive Officer of Altria, stated:
Our high-profit traditional tobacco business has maintained resilience in the dynamic operating environment during the third quarter and first nine months, providing momentum for our business transformation and delivering significant cash returns to our shareholders.
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