Looking to grow its smoke-free product portfolio and continue to balance earnings growth were some of the initiatives that Altria highlighted in its fourth-quarter 2023 earnings report.
“It was a pivotal year for Altria as we made significant progress in pursuit of our vision by enhancing our smoke-free product portfolio while our businesses performed well in a challenging environment,” said Altria’s CEO Billy Gifford in a statement regarding the company’s Feb. 1 earnings call.
Last year Altria acquiredthe e-vapor companyNjoy, whose products are now distributed by Altria Group Distribution Co.For the fourth quarter the company reported shipment volume of Njoy consumables was 11.1 million units. Retail share of Njoy in the U.S. multi-outlet and convenience channel was 3.7% for the fourth quarter, Altria said.
In the smokeable products segment, net revenues decreased 2.2% to $6 billion in fourth-quarter 2023, primarily driven by lower net revenues, offset by higher net revenues in the oral tobacco products segment, the Richmond, Virginia-based tobacco company said.
For full-year 2023, net revenues dipped 2.4% to $24.5 billion year-over-year. The company said this was primarily driven by lower net revenues in the smokeable products segment.
In the cigarette category, Altria’s sales volume for the fourth quarter decreased 7.6%. This was due to several factors, which included increased macroeconomic pressures on the adult tobacco consumer’s disposable income and the growth of illicit e-vapor products, Altria said.
Altria said its flagship cigarette brand Marlboro’s retail share of the total cigarette category remained unchanged versus the prior year but decreased 0.1 share points from the third quarter. Shares of Marlboro’s premium segment increased to 59.2%, a gain of 0.8 share points.
In the U.S. nicotine pouch category, Altria said net revenues increased 6.6% in the fourth quarter primarily driven by higher pricing and lower promotional investments. Altria said its modern oral nicotine (MON) pouch On’s share of the nicotine pouch category was 19.3%.
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