Dramatic Increase at Altria – Alternative Nicotine Products are Booming

The tobacco company Altria Group exceeded analysts' expectations with its third-quarter results. This is due to strong demand for the company's nicotine pouches and e-cigarettes, which were able to offset declining cigarette sales. Particularly noteworthy is the success of Altria's NJOY vapes and on! nicotine pouches in the U.S. market. The menthol-containing NJOY products even received approval from the U.S. Food and Drug Administration (FDA), which represents a significant advantage in the highly competitive e-cigarette market. The trend toward alternatives to traditional cigarettes is being closely watched by investors as companies like Altria and Philip Morris are seeking to unlock these potential growth areas. The numbers speak for themselves: while shipments of traditional cigarettes fell by 8.6%, NJOY devices achieved an impressive increase of over 100%, reaching 1.1 million units. Demand for on! nicotine pouches also increased by 46%. In contrast, the smokeless tobacco business, including the Copenhagen brand, fell short of expectations. This positive trend is also reflected in the stock market: Altria's shares rose by about 1% in pre-market trading and have recorded an increase of around 25% since the beginning of the year. Altria has also announced ambitious plans to enhance operational efficiency, aiming for cost savings of at least 600 million dollars over the next five years through the use of generative AI and automation. Quarterly revenues rose by 1.3% to 5.34 billion dollars, narrowly surpassing analysts' expectations. The adjusted earnings per share were 1.38 dollars, exceeding the forecasts of 1.35 dollars. Altria reaffirmed its full-year earnings forecast, anticipating earnings of 5.07 to 5.15 dollars per share. Recently, Altria's competitor Philip Morris raised its earnings forecast for the year, supported by strong demand for its IQOS tobacco heater and ZYN nicotine pouches.