Tobacco company Altria on Thursday gave an update on the company’s smoke-free products for its first-half and second-quarter 2024 financial results.
“Altria’s momentum continues to build as we pursue our vision to responsibly lead the transition of adult smokers to a smoke-free future,” said Billy Gifford, CEO of Richmond, Virginia-based Altria. “In the second quarter, our companies’ innovative smoke-free products delivered strong share and volume performance, and we hit meaningful milestones that we believe set us up for future success.”
Net revenues for the tobacco company decreased 4.6% to $6.2 billion for the second quarter and decreased 3.6% to $11.8 billion for the first half of the year, primarily driven by lower net revenues in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment, the company said.
Net revenues for Altria’s oral tobacco products increased 4.6% in the second quarter. Altria said this was due to higher pricing and lower promotional investments, partially offset by a higher percentage of On shipment volume relative to moist smokeless tobacco compared to the prior year and lower moist smokeless tobacco shipment volume.
Altria, which acquired the e-vapor company Njoy, whose products are now distributed by Altria Group Distribution Co., reported an increase for Njoy consumables.
For the second quarter, Altria reported shipment volume of Njoy consumables increased 14.7% sequentially to 12.5 million units, while the tobacco company said reported shipment volume of Njoy devices increased 80% sequentially to 1.8 million units. Njoy retail share in the U.S. multi-outlet and convenience channel increased 1.3 share points sequentially to 5.5%.
“Njoy received the first and only marketing granted orders from the FDA for menthol e-vapor products, and we submitted PMTA applications to the FDA for next generation Njoy and On products,” Gifford said.
The Food and Drug Administration issued marketing granted orders to Njoy LLC for four menthol-flavored e-cigarette products: Njoy Ace Pod Menthol 2.4%, Njoy Ace Pod Menthol 5%, Njoy Daily Menthol 4.5% and Njoy Daily Extra Menthol 6%. The announcement marks the first non-tobacco flavored e-cigarette products to be authorized by the FDA.
In the U.S. nicotine pouch category, Altria said this category grew to 41.6% of the U.S. oral tobacco category, an increase of 12.3 share points versus the prior year. On’s share of the nicotine pouch category was 19.4%, a decrease of 4.2 share points versus the prior year and an increase of 1.8 share points sequentially, the company said.
Despite a difficult operation environment, Gifford said “our traditional tobacco businesses remained resilient.”
Net revenues for Altria’s smokeable products decreased 5.6% to $5.4 million in the second quarter. This was driven by lower shipment volume and higher promotional investments, partially offset by higher pricing, the company said.
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