A Philip Morris Marlboro cigarette burns in an ashtray for this arranged photo in Tiskilwa, Ill. On Wednesday, July 12, 2017.
Daniel Acker | Bloomberg | Getty Images
Altria First quarter earnings declined as sales fell below estimates as cigarette shipments continued to decline.
The parent company of Marlboro Cigarettes has turned its business away from traditional tobacco products and announced it will acquire the remaining 20% stake in On, a nicotine pouch product.
The company’s shares rose less than 1% in premarket trading.
The company reported for the first quarter, versus Wall Street expectations, based on an analyst survey by Refinitiv:
- Earnings per share: $ 1.07 adjusted versus $ 1.05 expected
- Revenue: $ 4.88 billion excluding excise taxes versus $ 4.98 billion expected
Net income decreased from $ 1.55 billion, or 83 cents per share last year, to $ 1.42 billion, or 77 cents per share.
Excluding items, Altria earned $ 1.07 per share, beating the analysts surveyed by Refinitiv at $ 1.05 per share.
Revenue decreased 5.1% from $ 6.36 billion a year ago to $ 6.04 billion. However, after excise taxes, sales came in at $ 4.88 billion, down from what analysts had expected $ 4.98 billion.
Total cigarette shipments were down 12% year-on-year.
Altria again lowered the value of its Juul Vaping brand.
“Against a challenging comparison, our tobacco businesses performed well in the first quarter and we made further progress in developing our non-combustible portfolio,” said Billy Gifford, CEO of Altria, in a press release.
The Food and Drug Administration, which regulates tobacco products in the US, may be approaching a Ban on menthol cigarettes this week afterwards Years of consideration. Menthol cigarettes were often used disproportionately by colored people. The vast majority of black smokers use menthol cigarettes, and black men have the highest rate of lung cancer deaths in the United States.
In addition, last week the Biden government announced it was considering it Placing a nicotine level cap in cigarettes. If this policy is followed, tobacco companies are likely to question them.
Altria previously sent a letter to the FDA asking it to make it known that nicotine, the addictive component of cigarettes, does not cause cancer. The company said this would help smokers switch to potentially less risky non-flammable options like their heated tobacco stick Iqos and nicotine pouches On.