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Category: Business & Finance

  • Imperial Revenue Dips, But Delivers Strong NGP Growth

    Imperial Revenue Dips, But Delivers Strong NGP Growth

    Imperial Brands announced its full-year results for the year ended September 20, highlighting continued operational momentum and robust shareholder returns, even as reported earnings faced pressure. The company posted 4.1% growth in tobacco and Next Generation Products (NGP) net revenue, driven by double-digit NGP gains, strong tobacco pricing, and stable market share across its five priority markets. Since FY20, Imperial has added 48 basis points of market share. However, reported revenue slipped 0.7%.

    “We will continue to invest in consumer insights, innovation, and marketing capabilities,” said Imperial CEO Lukas Paravicini. “We will also continue to make deliberate, focused choices about which opportunities we pursue, and develop a simpler, more efficient, and more agile organization.”

    NGP performance remained a standout, with net revenue climbing 13.7% and reported NGP revenue up 14.9%, fueled by oral nicotine growth in the U.S. and Europe and share gains across all smoke-free categories. Adjusted operating profit rose 4.6%, though reported operating profit fell 1.8%. Adjusted earnings per share increased 9.1%, supported by profit growth and share count reduction, while reported EPS dropped 16.5%.

    Cash generation remained strong, with free cash flow of £2.7 billion, largely driven by the combustibles business. Shareholder returns were a key focus: the FY25 dividend rose 4.5%, and a £1.25 billion buyback was completed. Over FY21–FY25, Imperial returned £10 billion to shareholders, and a new £1.45 billion buyback for FY26 has already commenced.

  • OTP Driving Q3 Growth for U.S. Convenience Retailers

    OTP Driving Q3 Growth for U.S. Convenience Retailers

    Other tobacco products (OTP) continued to deliver strong performance for major U.S. convenience-store operators in the third quarter of 2025, according to earnings reports from Arko Corp., Murphy USA, and CrossAmerica Partners.

    According to CSP, Arko Corp. CEO Arie Kotler reported OTP sales up 16% year over year, with same-store sales rising 6.6% and category margins improving by more than 300 basis points, driven by store redesigns and enhanced promotions. CrossAmerica Partners also cited OTP as a key contributor to its higher merchandise gross margin, which grew by about 100 basis points. Meanwhile, Murphy USA highlighted strong gains in traditional smokeless and nicotine pouch sales. CEO Andrew Clyde said total merchandise margins rose 11.3%, while COO Mindy West noted nicotine pouch volumes surged 45%, jumping to 120% of prior-year levels in October through aggressive promotions.

  • New Indonesian Factory Fuels KT&G’s Expansion

    New Indonesian Factory Fuels KT&G’s Expansion

    KT&G told Hankooki.com today (November 12) that its Indonesian factory is scheduled to be completed within the month and should begin full-scale operations in February 2026. The 190,000-square-meter facility, which will produce cigarettes and capsule products for export across Southeast Asia and beyond, is expected to boost KT&G’s annual production capacity in Indonesia to 35 billion cigarettes, making it the company’s largest overseas manufacturing base.

    The move follows the launch of KT&G’s Kazakhstan plant in April, which can produce 4.5 billion cigarettes annually and serves as a key export hub for the Eurasian market. With both sites operational, KT&G aims to produce over half of its total output overseas in the medium to long term, improving global supply efficiency.

    The company also plans to expand into new markets like Jordan and Bangladesh, while growing its next-generation product (NGP) segment and nicotine pouch business through a strategic partnership and joint acquisition with Altria.

  • Pyxus Posts Strong Margins, Higher Guidance for Q2 2026

    Pyxus Posts Strong Margins, Higher Guidance for Q2 2026

    Pyxus International reported solid results for the second quarter 2026 ended September 30, with sales rising to $570.2 million from $566.3 million a year earlier. CEO Pieter Sikkel said the performance reflects strong execution and positions the company for a robust second half of fiscal 2026. Gross margin improved to 15.4% from 13.3%, “driven by a better product mix and higher returns on current crops.” Operating income rose to $46.7 million from $33 million, while adjusted EBITDA increased to $54.8 million from $44.3 million. Net loss narrowed to $900,000, compared to $3.2 million a year ago.

    Sales and other operating revenues for the first half of fiscal 2026 decreased $122.2 million, or 10.2%, when compared to $1.2 billion for the same period last year. “The decrease was due to the impact of lower carry-over sales from the prior fiscal year not being fully offset by the acceleration of shipments from the current crop.”

    Tobacco inventory rose to $1.1 billion, reflecting larger crops in Africa and South America, while uncommitted inventory remained low at 2.7% of total processed stock, signaling steady demand. The company reduced its operating cycle to 167 days from 179 days last year and reported strong liquidity with no borrowings on its $150 million credit line.

    Based on its performance and improved visibility, Pyxus raised its full-year sales guidance to $2.4–$2.6 billion (from $2.3–$2.5 billion) and tightened its adjusted EBITDA range to $215–$235 million.

  • PM Korea’s IQOS ‘Seletti Edition’ Sells Out in First Week

    PM Korea’s IQOS ‘Seletti Edition’ Sells Out in First Week

    Philip Morris Korea announced that its limited edition IQOS ILUMA i × Seletti collection, launched in collaboration with Italian design brand Seletti, sold out nationwide within a week. Pre-sales began October 28 for IQOS Club Platinum and Gold members, with the official release on October 30 through IQOS.com and directly operated stores. The edition, featuring black and gold designs with Seletti’s signature patterns, quickly became a collector’s item, with the Prime model selling out on the first day of pre-sale.

    Philip Morris Korea highlighted that the strong response reflects consumer appreciation for the brand’s design sensibility and value, not just sales performance. The success follows earlier limited editions like Minera, Neon, and Steve Aoki, underscoring IQOS’ ongoing strategy of blending style with technology to enhance consumer experience.

  • Scandinavian Narrows 2025 Outlook After Steady Q3 Performance

    Scandinavian Narrows 2025 Outlook After Steady Q3 Performance

    For the first nine months of 2025, Scandinavian Tobacco Group A/S (STG) reported net sales of DKK 6.7 billion ($1.1 billion), EBITDA margin of 19.9%, and free cash flow before acquisitions of DKK 448 million ($71.2 million), up from DKK 327 million ($52.3 million) a year earlier. STG reported third-quarter 2025 net sales of DKK 2.4 billion ($384 million), with organic growth flat year-on-year and EBITDA before special items at DKK 519 million ($83million), reflecting a 22% margin versus 23.4% last year.

    The company said results were broadly in line with expectations, though exchange rate pressures weighed on reported sales. Growth was recorded in Handmade Cigars and Next Generation Products, offset by declines in Machine-Rolled Cigars and Smoking Tobacco. CEO Niels Frederiksen noted that while market conditions remain challenging, the group saw stabilization in handmade cigars and growth in nicotine pouches. However, market share in machine-rolled cigars was affected by the rollout of STG’s new global SAP system.

    The company narrowed its full-year guidance to reflect better visibility heading into year-end and the effect of USD movements. STG plans to unveil its next five-year strategy on November 20, outlining growth priorities and stakeholder value initiatives.

  • Thai Association Wants Meta to Crack Down on $16B Illegal Sales Market

    Thai Association Wants Meta to Crack Down on $16B Illegal Sales Market

    Thailand’s Tobacco Trade Association (TTTA) called on the Ministry of Digital Economy and Society to pressure Meta to crack down on the widespread sale of illegal cigarettes on Facebook, arguing that the platform has become the primary marketplace for contraband tobacco. TTTA executive director Thanyasarun Saengthong said sellers routinely evade detection by using abbreviations and product images, allowing them to bypass Facebook’s keyword filters. The association urged Meta to use its advanced AI tools to scan Groups, Marketplace listings, page names, and images for tobacco content, and warned that paid ads are being used to promote illegal products without age checks.

    The TTTA cited internal Meta documents reported by Reuters, suggesting that up to 10% of Meta’s 2024 revenue—approximately $16 billion—may have come from deceptive ads and illicit goods, evidence, they say, of a serious enforcement failure. Under Thailand’s Tobacco Product Control Act, all online sale, display, and marketing of tobacco products is strictly prohibited. The TTTA argues Facebook’s inaction undermines Thai law and the government’s ongoing efforts to combat the contraband trade.

  • Altria, NJOY Sue U.S. ITC for ‘Unconstitutional’ Process Amid Juul Patent Fight

    Altria, NJOY Sue U.S. ITC for ‘Unconstitutional’ Process Amid Juul Patent Fight

    Altria Group Inc. and its NJOY vaping subsidiary filed a federal lawsuit in the Eastern District of Virginia on November 7, challenging the constitutionality of the U.S. International Trade Commission’s (ITC) administrative law judge (ALJ) appointment process. According to Bloomberg Law, the companies argue that ITC ALJs are “inferior officers” who must be appointed by the president, a court, or a department head — not by the ITC chair alone — as required by the Constitution’s Appointments Clause and Article II.

    Altria and NJOY further contend that the agency’s removal protections for ALJs violate the separation of powers and that the ITC’s adjudicative process deprives them of their Article III and Seventh Amendment rights to a jury trial. The suit seeks to block a pending ITC patent case brought by Juul Labs Inc.

    Juul’s complaint, originally filed in June 2023, accused NJOY of importing and selling vaping devices that infringe four Juul vaporizer patents. On January 29, 2025, the ITC issued a final determination finding that NJOY’s products infringed the asserted patents and imposed a limited exclusion order and cease-and-desist orders against NJOY and Altria. Those orders were set to take effect March 31, 2025, unless overturned by the Office of the U.S. Trade Representative.

    In parallel, Altria and NJOY launched their own ITC action against Juul, but the commission terminated that case on March 3, 2025, ruling that Juul did not infringe the patents asserted by Altria.

  • AIR Taking its Shisha Public on Nasdaq in 2026

    AIR Taking its Shisha Public on Nasdaq in 2026

    Shisha and inhalation technology company Advanced Inhalation Rituals (AIR) announced an agreement with Cantor Equity Partners to become publicly listed on the U.S. Nasdaq stock exchange under the ticker “AIIR” in the first half of 2026. Founded in the UAE, AIR owns Al Fakher, “the world’s largest shisha brand by sales volume, holding over 60% of the U.S. market.” In 2023, the company launched OOKA, “the world’s first pod-based, charcoal-free electronic shisha device, aimed at modernizing traditional shisha use.”

    AIR reported $375 million in net revenue and $150 million in adjusted EBITDA for 2024, underscoring strong financial performance. The company said its planned U.S. listing will enhance global visibility, attract international capital, and reinforce Dubai’s position as a hub for innovation.

  • Universal Reports Strong First-Half 2026, Announced Dividend

    Universal Reports Strong First-Half 2026, Announced Dividend

    Universal Corporation reported a 3% rise in revenue for the first half and 6% growth for Q2 FY2026, driven by higher tobacco processing volumes and stronger ingredient sales. Operating income rose 18% in the first half to $102 million, though it declined 2% in the second quarter to $68 million, reflecting product mix and currency impacts. Net income increased 64% year-over-year to $43 million.

    The Tobacco Operations segment posted a 2% revenue increase to $1.16 billion, with stronger processing volumes and earlier shipments. Ingredients Operations revenue grew 11% to $184 million, supported by continued demand for value-added products despite higher fixed costs and soft consumer demand.

    CEO Preston Wigner said Universal delivered “strong operational performance” and remains “well-positioned to capitalize on growth opportunities” in both tobacco and ingredients businesses. The company also advanced its sustainability goals, expanding solar power use across multiple sites as part of its transition to renewable energy.

    Universal’s board of directors also declared a quarterly dividend of $0.82 per share on the shares of the company, payable February 2, 2026, to shareholders of record at the close of business on January 12, 2026.