TobaccoReporter logo

Category: Business & Finance

  • STG Raises 2026 Guidance

    STG Raises 2026 Guidance

    Scandinavian Tobacco Group (STG) raised its 2026 financial guidance after reporting third-quarter revenue of DKK 2.43 billion ($361.3 million), up 2.1%, and net profit of DKK 294 million ($43.6 million), up 30%. EBITDA before special items increased 18% to DKK 610 million ($90.5 million), while free cash flow before acquisitions rose 154.3% to DKK 440 million ($65.3 million). CEO Niels Frederiksen attributed the improved outlook partly to higher-than-expected tariff and duty refunds, while noting that the quarter benefited from shipment timing that will reverse in the fourth quarter.

    STG now expects a 14% to 15.5% EBITDA margin before special items, compared with its previous forecast of 13% to 14.5%, and earnings per share of DKK 9.5 to DKK 11.5 ($1.43 to $1.73), up from DKK 9 to DKK 11 ($1.35 to $1.65). Its sales-growth forecast at constant currencies narrowed to a decline of 2% to no change, from a previous range of a 2% decline to 2% growth. Free cash flow guidance remains DKK 950 million to DKK 1.2 billion ($142.5 million to $180 million). The company also reported continued growth in handmade cigars and said its U.S. branded business gained market share in the first nine months of 2026.

  • Japan Tobacco Acquires U.S. Pouch Brand CLEW

    Japan Tobacco Acquires U.S. Pouch Brand CLEW

    Japan Tobacco Inc. (JT) acquired the U.S. nicotine pouch brand CLEW from Nevcore Innovations Inc. on Nov. 10. The transaction includes U.S. trademarks, intellectual property, product formulations, and a premarket tobacco product application. CLEW was added to JTI’s Liggett portfolio.

    CLEW offers moist, tobacco leaf-free nicotine pouches in multiple flavors and strengths and is distributed through selected retailers in 13 U.S. states. JTI Regional President of the Americas Idil Yasa said the acquisition will expand the company’s presence in the growing U.S. nicotine pouch category and complement its combustible tobacco portfolio. The purchase will be funded with existing cash and is not expected to have a material impact on JT’s 2026 financial results.

  • AIR Global Reports 11.1% Q3 Revenue Growth

    AIR Global Reports 11.1% Q3 Revenue Growth

    AIR Global PLC reported third-quarter 2026 revenue of $99.8 million, up 11.1% from a year earlier, as shipment volumes increased 5.8% following supply-chain disruptions in the first half of the year. Adjusted EBITDA rose 7.7% to $30.9 million. For the first nine months, revenue increased 6% to $306.7 million, while adjusted EBITDA rose 2.3% to $102.7 million. However, AIR reported a nine-month net loss of $74.2 million, compared with a $38.7 million profit a year earlier, largely reflecting one-time costs associated with its business combination, IPO, share-based compensation, and public-company preparations.

    The company reiterated its 2026 guidance for revenue growth of 4% to 6% and low- to mid-single-digit Adjusted EBITDA growth. CEO Stuart Brazier said third-quarter performance reflected recovering shipments and resilient consumer demand, although logistics and material costs remain elevated. AIR also reported that it submitted a Premarket Tobacco Product Application for Crown Switch, its planned U.S. vaping product, and expects to open a factory in Romania in the first quarter of 2027. The company plans to begin paying an annual dividend of $0.28 per share in the first quarter of 2027 and authorized up to $100 million in share repurchases through December 2029.

  • PMI to Invest $71M in Philippine Smoke-Free Expansion

    Philip Morris International said it will invest ₱4.5 billion ($71 million) to expand its smoke-free manufacturing facility in Batangas, Philippines. Vassilis Gkatzelis, PMI president for East and Southeast Asia, the Pacific, and global travel retail, said the investment will increase domestic production and export capacity, positioning the Philippines as a regional manufacturing and supply-chain hub. PMI said it has invested more than ₱125 billion ($2 billion) in the country since 2010, while its Philippine affiliate, PMFTC Inc., employs more than 5,000 people.

    PMI said approximately 200,000 Philippine adults use its IQOS ILUMA and ZYN products, compared with an estimated 14 million adult smokers in the country. Separately, PMI Vice President of Communications and Engagement Tommaso di Giovanni said the company is seeing growing demand for IQOS and ZYN but believes further consumer education and product availability are needed to accelerate adoption. PMI said its smoke-free products are now available in 110 markets and have more than 43 million adult users worldwide.

  • Ispire Revenue Falls 9.3% in Fiscal Q1

    Ispire Revenue Falls 9.3% in Fiscal Q1

    Ispire Technology reported fiscal first-quarter revenue of $27.5 million, down 9.3% from $30.4 million a year earlier, primarily due to lower European sales amid tighter vaping regulations. Net loss widened to $6.4 million from $3.3 million, including $4.8 million in credit loss expenses. Gross margin was 16.2%, down from 17% a year earlier but up from 6.3% in the previous quarter. Adjusted EBITDA was positive $136,000, compared with $639,000 a year earlier.

    The company said it is expanding manufacturing in Malaysia and pursuing new OEM and ODM relationships, including a potential deal with a regional Southeast Asian brand. Ispire is also advancing its nicotine pouch joint venture with Jincheng Pharma and plans a U.S. pilot of its IKE 2.0 age-gating platform with Charlie’s Holdings. Ispire ended the quarter with $15.6 million in cash and $400,000 in working capital.

  • Pyxus Launches Debt Restructuring Exchange Offer

    Pyxus Launches Debt Restructuring Exchange Offer

    Pyxus International launched an exchange offer for its subsidiary Pyxus Holdings’ $148.3 million in outstanding 8.5% senior secured notes due 2027. Under the offer, eligible noteholders can exchange each $1,000 in existing notes for a combination of Pyxus common stock, valued at $3.25 per share, and new floating-rate senior secured notes. Holders tendering by Nov. 24 will receive $344.37 in stock value and $675.90 in new notes, compared with $327.15 in stock value and $642.11 in new notes for later tenders.

    The offer, which expires Dec. 10, is part of a broader restructuring agreement with creditors holding significant portions of the company’s existing debt. Pyxus is also seeking approval to eliminate most restrictive covenants, subordinate the existing notes to certain other debt, remove change-of-control protections, and release the collateral securing the notes. Settlement is expected around Dec. 15, subject to creditor approvals and other conditions.

  • JT Shares Hit Daily Limit Again After Russia Takeover

    JT Shares Hit Daily Limit Again After Russia Takeover

    Shares of Japan Tobacco fell by the daily allowable limit for a second consecutive trading session Monday (Nov. 9) after Russia placed all of the company’s local entities under temporary administration, raising uncertainty about earnings from one of its most profitable overseas markets. The Tokyo Stock Exchange quadrupled the stock’s daily trading limit to 4,000 yen ($25.20), potentially allowing shares to fall as low as 1,269 yen ($8) Tuesday. The stock closed at 7,769 yen ($48.94) Thursday before Russian President Vladimir Putin signed the initial decree.

    Russia accounts for about 25% of Japan Tobacco’s adjusted operating profit and 10% of revenue. The company said its Russian business continues to operate but that it is assessing the potential impact of the measures on its financial results. Putin expanded the original order over the weekend to include additional Japan Tobacco International subsidiaries.

    The Japanese government, which owns about 37% of Japan Tobacco, received 156 billion yen ($982.8 million) in dividends for the fiscal year ended in March.

  • J.P. Morgan Resumes Coverage of Tobacco Companies

    J.P. Morgan Resumes Coverage of Tobacco Companies

    J.P. Morgan resumed coverage of British American Tobacco (BAT), Philip Morris International (PMI), and Imperial Brands, citing growth opportunities in the global tobacco and nicotine market. The bank assigned BAT an Overweight rating with a 5,300-pence price target, while giving PMI and Imperial Neutral ratings. It highlighted BAT’s market-share gains in U.S. nicotine pouches and vaping products, forecasting 3.9% comparable sales growth for the company in 2027.

  • China Tobacco Renews Supply, Export Agreements Through 2029

    China Tobacco Renews Supply, Export Agreements Through 2029

    China Tobacco International (HK) Ltd. signed three sets of agreements with China National Tobacco Corp. (CNTC) affiliates covering tobacco-leaf imports, tobacco-leaf export agency services, and cigarette exports to additional markets. The agreements take effect Jan. 1, 2027, and run through Dec. 31, 2029. The company will continue sourcing tobacco leaf from China Tobacco International (North America), handling export sales for CNTC affiliates, and purchasing cigarettes from four CNTC subsidiaries for overseas markets.

    Annual purchase caps for tobacco-leaf imports are HK$1.5 billion ($191.6 million) in 2027, HK$1.75 billion ($222.6 million) in 2028, and HK$1.9 billion ($238.3 million) in 2029. Commission revenue caps for tobacco-leaf export agency services are HK$1.2 million ($156,800), HK$1.4 million ($174,700), and HK$1.5 million ($195,100), respectively. Cigarette purchases for additional export markets are capped at HK$18.2 million ($2.3 million), HK$20.4 million ($2.6 million), and HK$24 million ($3.1 million), respectively, with cigars expected to be the primary product category. The tobacco-leaf import and agency agreements require independent shareholder approval under Hong Kong listing rules. The company expects to issue a shareholder circular within 15 business days.

  • All JTI Russian Entities Under Temporary Administration

    All JTI Russian Entities Under Temporary Administration

    Japan Tobacco International (JTI) said three additional entities in Russia have been placed under temporary administration pursuant to Russian presidential decrees dated Nov. 5 and 6. The measures now cover all seven JTI entities in the country: Petro LLC, JTI Donskoy Tabak LLC, JTI Yelets LLC, Cres Neva LLC, JTI Russia LLC, JTI Innovative Products LLC, and one dormant entity. The company said its Russian business continues to operate.

    Russia accounts for approximately 10% of JT Group’s consolidated reported revenue and 25% of its adjusted operating profit, based on the company’s revised 2026 forecast. As of Sept. 30, assets related to the Russian business, including goodwill, totaled approximately ¥1.5 trillion ($9.5 billion), including ¥360 billion ($2.3 billion) in cash and deposits. Related liabilities totaled approximately ¥200 billion ($1.3 billion). “As the impact of the temporary administration on its Russian operations remains under review, the JT Group continues to assess the potential impact on its financial results,” the company said. It added that it is monitoring the situation, gathering information, and evaluating available options and potential implications.