Altria revises outlook amid Njoy patent battle, despite smoke-free segment gains

Altria released its fourth-quarter and full-year financial results today, revealing progress and ongoing challenges in its business strategy – particularly concerning the acquisition of its e-cigarette brand, Njoy, in June 2023. During the presentation, the company highlighted that Njoy’s performance remains a significant concern, with its future financial impact playing a pivotal role in Altria’s long-term plans.

Despite Njoy’s shipment volumes for 2024 – 46.6m units of consumables and 5m units of devices – capturing a 5.5% retail share of the US multi-outlet and convenience channel, Altria acknowledged that market conditions had prevented the company from meeting its initial expectations. The company had hoped Njoy would contribute positively to cashflow by 2025 and adjusted diluted earnings per share (EPS) by 2026. However, these projections are now being reassessed, given the evolving market dynamics.