Altria’s Q2 quarter and first half results: Q2 net revenue fell 4.6% year-on-year to US$6.209 billion, and NJOY’s market share increased significantly.
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Altria's Q2 quarter and first half results: Q2 net revenue fell 4.6% year-on-year to US$6.209 billion, and NJOY's market share increased significantly.
On July 31, Altria Group announced its Q2 quarter and first half results for 2024. The report showed that Q2 quarter net revenue was US$6.209 billion, a year-on-year decrease of 4.6%. New tobacco products such as e-cigarette NJOY and nicotine bag on! market Significant share gains offset revenue declines in the Smokable Products segment.
On July 31, the official website of Altria Group, Inc. released its performance report for the second quarter and first half of 2024. The report showed that Q2 quarter net income was US$6.209 billion, a year-on-year decrease of 4.6%, and revenue after consumption tax fell by 3% to US$5.28 billion; net income in the first half of the year fell by 3.6% to US$11.8 billion, and revenue after consumption tax decreased. 2.0% to $10 billion. The revenue decline was primarily due to lower revenue in the Smokable Products segment, partially offset by higher revenue in the Oral Tobacco Products segment.
The company's total cigarette shipments fell 13% in the second quarter as cash-strapped consumers turned to cheaper alternatives or e-cigarettes, putting pressure on demand for expensive brands.
In the Q2 quarter, the reported shipment volume of NJOY consumables increased by 14.7% month-on-month to 12.5 million units. Equipment shipments increased by 80.0% month-on-month to 1.8 million units. The retail share of this product in the U.S. multi-channel and convenience store channels increased by 1.3% month-on-month. %, reaching 5.5%; in the first half of the year, NJOY consumables reported shipments of 23.4 million units and device shipments of 2.8 million units. The product's retail share in the U.S. multi-channel and convenience store channels was 4.8%.
In June 2024, four NJOY menthol e-cigarette products received FDA market authorization, including NJOY ACE Pod Menthol 2.4% and 5%, NJOY DAILY Menthol 4.5% and NJOY DAILY Extra Menthol 6%. NJOY is the first and only menthol e-cigarette product authorized by the FDA.
In addition, in the Q2 quarter, net income from oral tobacco products increased by 4.6%, and net income in the first half of the year increased by 4.1%.
Among them, the total market share of on! nicotine bags in the U.S. oral tobacco product category in the Q2 quarter was 8.1%, an increase of 1.2% from last year and a month-on-month increase of 1%. The market share of this product in the nicotine bag category was 19.4%. A year-on-year decrease of 4.2% and a month-on-month increase of 1.8%; in the first half of the year, the total market share of on! nicotine bags in the U.S. oral tobacco product category was 7.6%, an increase of 0.9% from last year; the U.S. nicotine bag category grew to 7.6% of the U.S. oral tobacco product category 40.9%, an increase of 12.9% from last year, and the product's market share in the nicotine bag category was 18.5%, a decrease of 5.4% from last year.
The following is a summary of the key contents of the report:
Adjusted diluted EPS for the first half of 2024 decreased 1.6%, in line with the company's growth-weighted expectations for the second half;
Full-year 2024 adjusted diluted EPS forecast range narrows to $5.07 to $5.15, with year-over-year growth expected to be 2.5% to 4.0%, based on $4.95 in 2023;
The company's adjusted earnings per share were $1.31, missing estimates of $1.35;
More than $5.8 billion of value was returned to shareholders in the first half of 2024 through share repurchases and dividends.
Altria CEO Billy Gifford said,
"Momentum continues to build at Altria as we pursue our vision of responsibly guiding adult smokers to a smoke-free future."
"In the second quarter, our company achieved strong market share and volume performance for its innovative smoke-free products, and we reached meaningful milestones that we believe set the stage for future success. NJOY received the first and only marketing authorization order from the FDA for a menthol e-cigarette product, and we submitted PMTA applications to the FDA for NJOY ACE 2.0 and on! PLUS."
"Despite a challenging operating environment, our traditional tobacco business remained resilient. Our high cash-generating business supported our continued investment in innovative products, and in the first half of the year, we returned more than $5.8 billion of value to shareholders through share repurchases and dividends."
