Altria Group Inc.

Strong Q1 Performance in Traditional Tobacco: Altria's smokeable products segment saw a 2.7% growth in adjusted operating companies income (OCI) with an adjusted OCI margin of 64.4%, up 4.2 percentage points YoY. Despite a reported domestic cigarette volume decline of 13.7%, strong net price realization of 10.8% helped maintain profitability.

ON! Growth and Market Position: The oral nicotine pouch category, led by Altria’s ON! brand, experienced significant growth, with ON! achieving an 18% increase in shipment volume to over 39 million cans. ON!'s market share in the oral tobacco category rose to 8.8%, indicating strong brand equity and consumer loyalty, supported by effective marketing strategies.

E-Vapor Challenges: Altria faces significant hurdles in the e-vapor category due to regulatory challenges, particularly the ITC's exclusion order affecting the NJOY ACE product. The company recorded a non-cash goodwill impairment charge of $873 million due to these issues, highlighting a risk to their overall e-vapor strategy as the market remains dominated by illicit products.