(Corrects date in dateline to April 30)
April 30 (Reuters) – Altria beat Wall Street expectations for first-quarter profit and revenue on Thursday, helped by price hikes on cigarettes and nicotine pouches, though its key brands Marlboro and On! lost market share.
Shares of the company were up about 1% in premarket trading following the results.
Tobacco companies have turned to smoking alternatives such as vapes and nicotine pouches as health concerns curb cigarette use, but the transition has been bumpy.
Altria’s push into new categories has faced setbacks, most recently an import block on its NJOY e-cigarette over a patent dispute.
With sales of traditional tobacco products declining and growth in newer products uncertain, price hikes have been a key lever to preserve margins.
The company reported revenue of $5.43 billion for the quarter ended March 31, beating analysts’ average estimate of $4.58 billion, according to data compiled by LSEG.
Adjusted quarterly profit of $1.32 per share also topped expectations of $1.25.
Revenue at the tobacco segment rose 2.9% from a year ago, but Marlboro’s retail share fell 1.4 share points to 39.7%, while cigarette shipment volumes declined 7.8%.
Revenue from oral tobacco products, including Copenhagen, Skoal and On!, grew 2.3%, though their market share dropped 5.5 share points from a year earlier.
The company reaffirmed its annual profit forecast, expecting adjusted profit growth to be more evenly split between the first and second halves of the year.
(Reporting by Neil J Kanatt in Bengaluru and Emma Rumney in London; Editing by Shreya Biswas)
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