Altria Group Reports 3.6% Revenue Decline and 41.8% Drop in Net Earnings for Six Months Ended June 30, 2025

Altria Group, Inc. reported a decline in financial performance for the six months ended June 30, 2025, with net revenues of $11.36 billion, down 3.6% from $11.79 billion in the same period last year. The company's net earnings also fell significantly, totaling $3.46 billion compared to $5.93 billion in 2024, marking a 41.8% decrease. This decline was attributed to lower shipment volumes in the smokeable products segment, which saw a 4.1% drop in revenues, and a notable impairment charge of $873 million related to the e-vapor reporting unit goodwill.

In terms of operational changes, Altria's smokeable products segment reported a decrease in shipment volume of 11.9%, primarily driven by a shift in consumer preferences towards lower-priced products and the impact of inflation on discretionary spending. The discount share of the cigarette category increased to 31.2%, reflecting a 1.9 percentage point rise compared to the previous year. Conversely, the oral tobacco products segment experienced a revenue increase of 3.3%, driven by higher pricing, although shipment volumes for traditional products like Copenhagen and Skoal declined.

Strategically, Altria has been focusing on its transition towards smoke-free products, with the acquisition of NJOY Holdings, Inc. in 2023 enhancing its portfolio in the e-vapor market. However, the company faced regulatory challenges, including an exclusion order from the U.S. International Trade Commission prohibiting the sale of NJOY ACE products in the U.S. market. This regulatory environment has prompted Altria to engage in various legal and compliance efforts to navigate the evolving landscape of tobacco product regulations.

Looking ahead, Altria's management expressed cautious optimism regarding its ability to adapt to market conditions and consumer preferences. The company aims to leverage its investments in innovative products while managing the challenges posed by litigation, regulatory scrutiny, and changing consumer behaviors. Altria's ongoing initiatives, including its Optimize & Accelerate program, are designed to enhance operational efficiency and support its long-term vision of moving beyond traditional tobacco products.