Category: Business & Finance

  • PMI Halts U.S. Cigar Sale

    PMI Halts U.S. Cigar Sale

    Bloomberg reported that yesterday Philip Morris International Inc. called off the sale of its $1 billion US cigar business, citing the “current environment” in the latest deal to go awry amid market turmoil.

    PMI said following a thorough review and after taking into account the current environment, it will not shed the cigar unit it acquired as part of its $16 billion purchase of rival Swedish Match. It has previously said it wanted to dispose of US cigars as it continues to pin its future on a shift toward smoke-free alternatives to traditional tobacco products.

    The company said strong sales of Zyn nicotine pouches — also acquired from Swedish Match — were driving performance as it boosted adjusted earnings per share guidance this year to as much as $7.49, compared with a previous targeted high of $7.17.

    The smoke-free business includes Zyn and IQOS heated tobacco sticks and accounted for 42% of the first-quarter total net revenue. Philip Morris wants to generate more than two-thirds of its sales from alternative products by 2030.

  • PMI Surpasses Estimates for Fourth Straight Quarter

    PMI Surpasses Estimates for Fourth Straight Quarter

    Today (April 23), Philip Morris International announced first-quarter earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.61 per share. This is a 12.7% increase, and compares to earnings of $1.50 per share a year ago. These figures are adjusted for non-recurring items, and mark the fourth straight quarter the company has surpassed consensus EPS estimates.

    PMI posted revenue of $9.3 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.97%.

    “We achieved exceptionally strong performance in the first quarter, with continued volume growth supporting an excellent top-line performance and very strong margin expansion,” said Jacek Olczak, Chief Executive Officer. “Our smoke-free business goes from strength to strength, delivering organic growth of over 20% in net revenues and over 33% in gross profit.

    “We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment, and now forecast double-digit adjusted diluted EPS growth in dollar terms for the full year.”

    PMI’s smoke-free business saw a 14.4% increase in shipment volumes, and now accounts for 42% of its total net revenues and 44% of its total gross profit.

  • KT&G Opens Kazakhstan Plant

    KT&G Opens Kazakhstan Plant

    KT&G hosted the completion ceremony of its new Kazakhstan factory yesterday, which will be the production hub for its Eurasian market. The ceremony took place at the 52,000㎡ factory grounds in Almaty. The factory will be an export outpost and core production base that meets the demands of recently growing Europe, CIS, and the Eurasian markets, and is expected to produce 4.5 billion cigarettes a year.

    The construction of the new factory in Kazakhstan is part of KT&G’s CAPEX investment program announced at the “Future Vision Declaration Ceremony” held in January of 2023. KT&G plans to increase the proportion of global revenue to 50% by 2027 through the expansion of direct global operations and other measures, heightening core business competitiveness.

    “With the completion of the new Kazakhstan factory, KT&G has laid the foundation of a Global Manufacturing Network that will tow our global competitiveness,” KT&G CEO Kyung-man Bang said. “KT&G will accept challenges in the future and expand our global direct business to increase profitability as well as corporate value, and share the gains with our stakeholders.”

    After the ceremony, KT&G signed a Memorandum of Understanding on the “Green Globe Project” that aims to assist in local reforestation efforts. Through the project, the company plans to assist recovery from the June 2023 Abai wildfire.

  • POSaBIT Hosting FY24 Webcast

    POSaBIT Hosting FY24 Webcast

    POSaBIT Systems Corporation, a financial-tech company that works exclusively in the cannabis industry, will host a conference call and live webcast April 24 at 4:30 PM ET to discuss the results of its fourth quarter and full year 2024. The company is soliciting investor questions until noon that day, with the top aggregated questions being answered on the call by the CEO.

    Toll Free: 888-506-0062
    International: 973-528-0011
    Participant Access Code: 977825
    Webcast URL: https://www.webcaster4.com/Webcast/Page/2708/52361Conference Call Replay Information:
    Toll Free: 877-481-4010
    International: 919-882-2331
    Replay Passcode: 52361
    Webcast Replay URL: https://www.webcaster4.com/Webcast/Page/2708/52361

  • Marlon Wayans Launches Cigar Brand

    Marlon Wayans Launches Cigar Brand

    Comedian and actor Marlon Wayans announced the launch of his new Liga Tridente Cigar brand. The Honduran-made cigar is still new to the market, available in around 18 stores in the United States, but Wayans, who is one of the owners, says he is hoping to double its retail reach for next year.

    The brand comes in three blends. The Liga Tridente Habano is the largest, with three sizes, made with Nicaraguan wrappers and binders, and a blend of fillers from Nicaragua, Costa Rica, and Colombia. The Yasuke Maduro, made with Costa Rican wrapper, Nicaraguan binder, and a mix of Costa Rican and Honduran filler, comes in two sizes. And the Liga Tridente Maduro, is a 6-by-50 Toro made with a mix of Nicaraguan and Columbian tobaccos, and is the highest priced cigar in the line at $40 per.

    Wayans has been in more than 20 movies and is known for films such as Scary Movie and its sequel, along with television shows such as “In Living Color” and “The Wayans Bros.”

    “I used to smoke back in the day in the ’90s,” he said at the launch party. “This time, I am doing it as both a joy and investment.”

  • Top U.S. Tobacco Producer Bracing for Tariff Impact

    Top U.S. Tobacco Producer Bracing for Tariff Impact

    North Carolina, the United States’ leader in tobacco production, could face economic fallout from the Trump administration’s recent tariff increases, which have set off a spiraling trade war, Katherine Zehnder wrote for The Carolina Journal. North Carolina exported $533 million in tobacco last year, producing 260.1 million pounds annually, accounting for 60% of U.S. tobacco production.

    “I know tobacco growers are busy planting their crops now to honor the 2025 contracts they have in place with China,” Steve Troxler, commissioner of the North Carolina Department of Agriculture and Consumer Services said. “In the meantime, we continue to monitor these trade negotiations very closely, waiting to see what the outcome will be because it is a very fluid situation. Going back to the last trade negotiations that were initiated, the president was very good about helping farmers who had adverse effects. In fact, he was the first president in a very long time who included tobacco.”

    North Carolina has 822 tobacco farms, generating a revenue of $557 million and adding $197 million to the state’s GDP, according to Regulatory Smoke: The Economic Impacts of Proposed FDA Tobacco Regulations, a report from the John Locke Foundation. Tobacco manufacturers in the state generate $36 billion in output and contribute $31 billion to the state’s GDP, employing approximately 5,000 workers and paying them $370 million in wages. The tobacco wholesale sector brings in $15.3 billion in revenue, adds $9 billion to the GDP, and supports around 4,500 jobs.

    “Historically, tobacco exports have been a vital part of North Carolina’s agricultural strength, with countries like China, Japan, and the European Union serving as major buyers of our tobacco,” said Kelly Lester, policy analyst for the Center for Food, Power and Life at the John Locke Foundation. “When tariffs were imposed during the last trade war, China dramatically reduced its tobacco imports from the US, dealing a blow to farmers here at home. A repeat of that scenario could once again destabilize the market, lower prices, and put immense financial pressure on growers who are already navigating inflation, labor shortages, and tightening regulations.”

    The imposed tariffs could result in a significant downturn in these numbers. International markets, such as China, could also see a substantial downturn in exports due to increased tariffs, which would have a trickle-down effect on the state’s economy and agriculture sector. Last month, China announced plans to impose a 10% tariff on North Carolina exports, which include fruits and vegetables. In addition, China’s tariff on US goods was recently increased from 34% to 84%. 

    “It was pretty predictable that China was going to have a big impact, and they have, and they’re going to attack tobacco pretty hard because they know that that’s part of the soft underbelly in the agriculture sector,” State Rep. Jimmy Dixon, said. “I do not expect it to be permanent; I think that China will come to the negotiating table sooner rather than later, but the temporary reaction will be very tough and difficult and probably be a little bit depressing to our tobacco farmers. I’m telling people I’m personal friends with to hang on; it’s going to be a bumpy ride, but a short bumpy ride.”

  • AMCON Posts 2Q Losses

    AMCON Posts 2Q Losses

    AMCON Distributing Company, an Omaha, Nebraska-based convenience and foodservice distributor, announced fully diluted loss per share of $2.58 on a net loss available to common shareholders of $1.6 million for its second fiscal quarter ending March 31, 2025. The wholesale distribution segment reported revenues of $607.6 million and operating income of $2.8 million.

    AMCON, with its subsidiaries Team Sledd and Henry’s Foods, is a leading distributor of consumer products, including tobacco, nicotine, beverages, candy, and groceries. It serves Colorado, Idaho, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, and West Virginia.

    “The convenience retailing sector which we serve continues to experience a challenging operating environment with consumer behavior and discretionary spending lagging,” said Christopher H. Atayan, AMCON’s Chairman and CEO. “At the same time, the cost structures for convenience distributors have been impacted by the cumulative impact of inflation over a multi-year period. These inflationary pressures have resulted in higher operating expenses in areas such as product costs, labor and employee benefits, equipment, and insurance, and in additional consolidation across our entire industry.”

  • Nepal’s Plan to License Tobacco Faces Pushback 

    Nepal’s Plan to License Tobacco Faces Pushback 

    Nepal Industry Minister Damodar Bhandari is preparing to grant licenses to the cigarette, tobacco (gutkha), and alcohol industries, according to Republica. The Consumer Awareness Campaign-Nepal (CAC-N), however, expressed strong objection to the government’s plan. CAC-N Chairperson Krishna Prasad Bhandari urged the government not to permit the production of items harmful to public health.  

    In a case where the Supreme Court issued a directive to control tobacco products, CAC-N raised concerns that granting licenses to such industries would constitute contempt of court. President Bhattarai stated that the campaign has also urged Prime Minister K.P. Sharma Oli to take the issue seriously for the protection of public health and property, and urged Minister Bhandari to immediately halt the license distribution process. 

    CAC-N said allowing such industries to operate is troubling and has called for a reversal of the decision, stating that it benefits only a few industrialists.

  • BAT Hosts Annual General Meeting

    BAT Hosts Annual General Meeting

    At its 2025 General Meeting, British American Tobacco (BAT) announced that its sales had fallen by 5.2% as reported in 2024, although has risen 1.3% organically. The company presented its updated strategy based on three pillars: quality growth, a sustainable future, and a dynamic company.

    “2024 was an investment year for BAT, with delivery in line with our guidance,” Luc Jobin said in BAT’s chair address. “I was pleased to see another solid performance in our new categories business. New categories’ contribution increased by £251 million, on an adjusted organic basis at constant currency rates, and category contribution margin is now at 7.1%.”

    BAT said it would continue its strategy towards a smoke-free world, aiming for a largely combustion-free business by 2035. Smokeless products now account for 17.5% of sales, with 29.1 million adult consumers. For 2025, BAT expects 1% sales growth, with its adjusted operating profit up by between 1.5% and 2.5%, with an unfavorable exchange rate effect. The company is targeting 3%-5% growth in sales for 2026, with adjusted profit up 4%-6%. The £900m share buyback program and a 2% increase in its dividend have been confirmed.
    The Board announced the addition of Soraya Benchikh as Chief Financial Officer and Uta Kemmerich-Keil as an independent director.

  • Altria to Host Webcast of 2025 First-Quarter Results

    Altria to Host Webcast of 2025 First-Quarter Results

    Altria Group, Inc. will host a live audio webcast April 29, 2025, at 9 a.m. EST to discuss its 2025 first-quarter business results. Altria will issue a press release containing its business results at approximately 7 a.m. the same day. The webcast can be accessed at altria.com.

    During the webcast, Billy Gifford, Altria’s Chief Executive Officer, and Sal Mancuso, Altria’s Chief Financial Officer, will discuss the Company’s 2025 first-quarter business results and answer questions from the investment community and news media.

    The webcast will be in a listen-only mode. Pre-event registration is necessary; directions are posted at www.altria.com/webcasts. An archived copy of the webcast will be available on altria.com.