Altria's net revenues for the first quarter decreased 5.7% to $5.3 billion, primarily driven by lower net revenues in the smokeable products segment, the tobacco company reported during its first-quarter 2025 earnings call on Tuesday.
The Marlboro maker reported domestic cigarette shipment volume decreased 13.7%, primarily driven by the industry’s decline rate as well as the impact of the growth of illicit e-vapor products. The company said Njoy shipment volume decreased 70% to 0.3 million units.
“Since we acquired Njoy in 2023, the vapor marketplace has changed significantly,” Altria CEO Billy Gifford told analysts on the call. “Unfortunately, in the absence of FDA-authorized flavored choices, many consumers have turned to the illicit market.”
Gifford said Njoy has been further challenged by the U.S. International Trade Commission’s (ITC) exclusion order and cease and desist orders that took effect March 31.
Richmond, Virginia-based Altria acquired the e-vapor company Njoy, whose products are now distributed by Altria Group Distribution Co., in June 2023. In 2023, Juul Labs filed complaints against Njoy alleging its Njoy Ace e-cigarette device infringes on several patents of Juul Labs. Altria subsidiary Njoy filed a similar complaint in 2023 against Juul Labs with the ITC.
As a result of the ITC orders going into effect, the company said it recorded a non-cash impairment charge of $873 million to the e-vapor reporting unit goodwill in the first quarter of 2025.
“To comply with the orders, Njoy discontinued the importation of Njoy Ace and ceased shipments to wholesale,” Gifford said, adding that “these orders are yet another step backwards for the e-vapor category.”
Gifford said Njoy intends to appeal the ITC’s decision.
Oral tobacco products saw revenue increase for the first quarter. Products, such as Copenhagen and moist tobacco increased 0.5% to $654 million, the company reported.
Altria reported the U.S. nicotine pouch category grew to 49.1% of the U.S. oral tobacco category, an increase of 8.7 share points versus the prior year. In addition, On's share of the nicotine pouch category was 17.9%, an increase of 0.5 share points versus the prior year.
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