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Category: Business & Finance

  • PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    PMI Warns Middle East Conflict Will Spur Illicit Trade in Asia

    Philip Morris International warned that the continuing conflict in the Middle East could disrupt supply chains and drive a surge in illicit cigarette trade across Southeast Asia. The company said past disruptions, such as during the COVID-19 pandemic, led to sharp increases in illegal market share, with illicit trade in the Philippines rising from 6% to 17%. PMI estimates governments in the ASEAN region are already losing around $4 billion annually in cigarette excise revenue, with an additional $2 billion lost from illegal vaping products.

    PMI called for stronger regional coordination to address the issue, including real-time sharing of customs data among ASEAN countries to better track illicit flows. The company said supply constraints and regulatory gaps create opportunities for illegal operators, and urged policymakers to adopt more unified enforcement strategies as the Philippines chairs ASEAN this year.

  • Capital Group Acquires 5.61% Stake in KT&G, Shares Top $122

    Capital Group Acquires 5.61% Stake in KT&G, Shares Top $122

    U.S.-based Capital Group announced that it has acquired a 5.61% stake in South Korea’s KT&G, joining a growing group of major foreign investors in the tobacco company as its share price reaches record levels. The disclosure, required under Korean regulations for holdings above 5%, positions Capital Group alongside other significant shareholders, including BlackRock, First Eagle Investments, and Singapore’s GIC.

    The investment comes amid sustained foreign buying momentum, with overseas investors purchasing an estimated 800,000 shares worth about KRW 140 billion ($96.6 million) over 19 consecutive trading sessions through May 7. The influx of capital has helped push KT&G’s stock above KRW 180,000 ($122.40) for the first time, reflecting increased investor interest in the company’s performance and outlook.

  • JTI Reports Revenue Up 15%

    JTI Reports Revenue Up 15%

    Japan Tobacco Inc. reported first-quarter 2026 revenue of JPY 924 billion ($5.9 billion), up 15.2% year-over-year, with operating profit rising 24.7% to JPY 304.6 billion ($1.9 billion), supported by pricing, foreign exchange benefits, and strong growth in reduced-risk products (RRP). RRP revenue increased 63.8% to JPY 43.5 billion ($278 million), with shipment volumes up 44.2% to 4.3 billion units, driven largely by continued expansion of its Ploom heated tobacco platform across 25 markets.

    Combustible volumes remained broadly stable at 131.3 billion units, with growth in global flagship brands offsetting declines in some regions, while JT reported market share gains in more than 45 countries. The company maintained its full-year outlook, forecasting revenue of JPY 3.697 trillion ($23.7 billion) and operating profit of JPY 921 billion ($5.9 billion), as it continues to balance stable cigarette performance with accelerated investment in next-generation products.

  • KT&G Reports 27% Increase in Q1 2026

    KT&G Reports 27% Increase in Q1 2026

    KT&G reported a 27.6% year-over-year increase in first-quarter operating profit, supported by growth across both traditional cigarette and next-generation product (NGP) segments. Consolidated revenue reached KRW 1.7 trillion ($1.16 billion), up 14.3%, while operating profit rose to KRW 364.5 billion ($248 million). The company’s global combustible cigarette business saw strong performance, with shipment volumes increasing 15% and operating profit rising 56.1%, driven by higher sales and pricing improvements.

    The NGP segment also recorded significant gains, with revenue increasing 51.6% to KRW 241 billion ($164 million) and domestic market share reaching 47.4%. KT&G said it plans to expand its NGP business internationally through independent operations in key markets across Asia-Pacific and Eurasia. The company also continued shareholder returns, canceling treasury shares worth KRW 1.8 trillion ($1.24 billion), equivalent to 9.5% of total shares, and indicated that a new dividend policy will be announced later in 2026.

  • Turning Point Sales Up 16.8% in Q1 2026

    Turning Point Sales Up 16.8% in Q1 2026

    Turning Point Brands reported first-quarter 2026 net sales of $124.3 million, up 16.8% year-over-year, driven primarily by strong growth in its Modern Oral segment. The Stoker’s division, which accounts for the majority of revenue, saw net sales rise 48.1% due to triple-digit growth in modern oral products, while the Zig-Zag segment declined 22.4% amid lower U.S. shipments. Gross profit increased 14.6% to $68.3 million, though net income fell 19% to $11.7 million, reflecting higher investment in sales, marketing and distribution.

    The company said it is investing heavily to capture growth in the evolving nicotine category, particularly in nicotine pouches, and raised its full-year outlook for Modern Oral sales. Turning Point Brands expects Modern Oral gross sales of $280–$300 million in 2026 and remains focused on scaling the segment while leveraging cash flow from legacy brands to support long-term growth.

  • Villiger Announces Schüpbach as New CEO

    Villiger Announces Schüpbach as New CEO

    Villiger Söhne Holding AG announced the appointment of Christoph Schüpbach as Chief Executive Officer of the Villiger Group as part of a planned leadership transition. Effective June 1, Schüpbach will succeed managing director Clemens Gütermann, who is set to retire in 2027 following a transition period. The company said its long-term strategy will remain unchanged, with continued focus on quality, innovation, and its family-owned structure.

    Schüpbach brings experience from leadership roles at Schleuniger Group and Regent Lighting, as well as earlier positions at Bystronic and ABB. Villiger, a Switzerland-based cigar and cigarillo manufacturer producing over one billion units annually, operates across multiple international markets with production facilities in Europe, Latin America, and Asia.

  • 22nd Century Reports $4.1M in Revenue as it Focuses on Future

    22nd Century Reports $4.1M in Revenue as it Focuses on Future

    22nd Century Group reported first-quarter 2026 revenue of $4.1 million, with a continued focus on expanding its reduced-nicotine VLN cigarette portfolio and distribution footprint. The company said it is gaining traction with adult smokers, with products now available in more than 2,000 stores across 20 states and targeting over 5,000 retail locations by the end of 2026.

    The company is positioning its proprietary low-nicotine technology as aligned with potential future FDA standards, while pursuing a broader product pipeline across cigarettes, filtered cigars and other formats. Despite ongoing net losses, 22nd Century said it is prioritizing distribution growth, regulatory engagement, and margin improvement, with plans to expand licensing opportunities and advance multiple PMTA submissions to support long-term growth.

  • AIR to Open Manufacturing Facility in Romania

    AIR to Open Manufacturing Facility in Romania

    AIR Limited announced plans to build a new 70,000-square-foot manufacturing facility in Romania, with operations expected to begin in the first quarter of 2027. The site, located near Bucharest, is projected to produce more than 4,000 tons of flavored shisha molasses annually and create over 150 jobs, expanding the company’s production capacity and supply chain flexibility amid global uncertainty.

    The investment supports AIR’s broader growth strategy as it strengthens its position in the global shisha and inhalation products market, where it reported approximately $400 million in revenue in 2025. The expansion comes ahead of the company’s planned public listing on Nasdaq, expected in 2026, and reflects continued demand growth across key Western markets, including the U.S. and Europe.

  • Ispire Revenue Down, But ‘Stabilized’ After Strategic Repositioning  

    Ispire Revenue Down, But ‘Stabilized’ After Strategic Repositioning  

    Ispire Technology reported third-quarter fiscal 2026 results showing signs of business stabilization as it pivots away from its legacy cannabis-related interests toward regulated nicotine products and technology-driven growth. Revenue totaled $18.7 million, down 28.6% year-over-year but reflecting a narrower sequential decline, while cash increased to $18 million. The company said it is targeting cash flow positivity in the second half of 2026, supported by reduced operating expenses and a strategic shift away from lower-margin cannabis segments.

    Ispire highlighted multiple growth drivers, including operational manufacturing in Malaysia offering tariff advantages, the launch of nicotine pouch supply, and upcoming vapor ODM partnerships. It said longer-term opportunities include age-gating technology and G-Mesh glass innovation, which the company said could position it to access multi-billion-dollar markets, including the U.S. flavored vape segment and global nicotine delivery technologies.

  • PMI’s Net Revenue Tops $40B for 2025

    PMI’s Net Revenue Tops $40B for 2025

    Philip Morris International highlighted strong financial performance and continued growth in its smoke-free portfolio during its 2026 Annual Meeting, reporting net revenues exceeding $40 billion in 2025, including nearly $17 billion from smoke-free products. The company said it delivered its fifth consecutive year of volume growth and remains focused on expanding its smoke-free business, which now accounts for a significant share of total revenues and is used by more than 43 million adult consumers globally.

    PMI reaffirmed its outlook for continued growth through 2026–2028 and its commitment to shareholder returns, while noting ongoing investments in innovation and regulatory progress for alternative products. The company also pointed to a complex operating environment, including regulatory pressures, geopolitical risks, and shifting consumer behavior, but said its performance in early 2026 supports confidence in achieving its long-term strategy.