TobaccoReporter logo

Category: Business & Finance

  • Momentum Driving BAT Confidence in 2026 Delivery

    Momentum Driving BAT Confidence in 2026 Delivery

    British American Tobacco reported “accelerating momentum” in 2025, driven by strong U.S. combustible sales and rapid growth of its Velo nicotine pouch brand, while total smokeless consumers rose to 34.1 million. The company said new category revenue returned to double-digit growth in the second half of the year and now accounts for 18.2% of total revenue, as BAT continues investing in products such as Vuse, glo and Velo to support long-term transformation.

    BAT expects 2026 performance to fall at the lower end of its mid-term growth targets, projecting 3–5% revenue growth and 5–8% adjusted EPS growth amid continued investment and foreign exchange headwinds, while maintaining dividend increases and launching a £1.3 billion share buyback.

    “Our U.S. business has delivered strong growth, mainly driven by sustained momentum in combustibles, resulting from our commercial actions and enhanced execution,” company CEO Tadeu Marroco said. “Our New Categories revenue is accelerating, returning to double-digit growth in H2, driven by strong Velo growth in all regions. We continue to prioritize accelerating growth in category contribution through investment in our most profitable markets.”

  • JT Reports Record Year with Revenue Up 13%

    JT Reports Record Year with Revenue Up 13%

    Japan Tobacco Inc. (JT) reported record fiscal 2025 results, with revenue rising 13.4% to JPY 3.47 trillion ($22.6 billion) and adjusted operating profit increasing 21.5% to JPY 902.2 billion ($5.9 billion), driven largely by tobacco business growth and the acquisition of Vector Group. Profit climbed 188.9% to JPY 499.1 billion ($3.2 billion), while free cash flow rose to JPY 272.7 billion ($1.8 billion), and the company plans to pay an annual dividend of JPY 234 ($1.52) per share.

    For fiscal 2026, JT forecasts continued growth, projecting revenue to increase 6.6% and adjusted operating profit to rise 7.9%, as it accelerates investment in heated tobacco products to complement its combustible cigarette portfolio and support long-term earnings expansion.

    “These achievements are the outcome of the strategic investments we have actively pursued over the years,” said JT Group president and CEO Takehiko Tsutsui. “In our Business Plan 2026, we intend to accelerate investments in heated products with the aim of establishing them as the second pillar of profit growth, alongside combustibles, in future years. Furthermore, we are targeting high single digit growth at a [compound annual growth rate] in consolidated adjusted operating profit at constant FX, driven by the tobacco business.”

  • Foreign Expansion Driving KT&G’s Success

    Foreign Expansion Driving KT&G’s Success

    In an interview with The Korea Times, KT&G credited expanding overseas operations with its recent financial success, with foreign sales passing domestic for the first time in the company’s history. The South Korean company has seen rapid international growth, with foreign subsidiary revenue rising 245% since 2020 and overseas cigarette volumes more than doubling. KT&G reported record annual sales of 6.5 trillion won ($4.5 billion) and operating profit of 1.35 trillion won in 2025.

    Supported by 16 marketing and manufacturing hubs and five global production plants, KT&G said it plans to continue strengthening its global footprint and product portfolio, as investor interest grows and the company’s market value climbs.

    “Our overseas bases were not established for short-term sales gains,” a KT&G official said. “They were built to create a sustainable global business structure for the long term, taking into account specific consumer demands across different regions.”

  • DoF Says Illicits Threaten Philippines Fiscal Stability

    DoF Says Illicits Threaten Philippines Fiscal Stability

    Philippine finance officials are raising alarms over the growing impact of illicit cigarette trade, warning that smuggling is driving down tobacco excise tax revenues and threatening funding for public health programs. The Department of Finance (DoF) said tobacco tax collections fell 24% from P174.6 billion ($3 billion) in 2021 to P132.3 billion ($2.2 billion) in 2024, despite rising smoking rates, with Finance officials describing illegal tobacco as a direct threat to fiscal stability and healthcare financing.

    Officials estimate the government may have lost up to P172 billion ($2.9 billion) in tobacco excise revenue between 2020 and 2025 due to smuggling, with illegal cigarettes accounting for roughly 20% of the market. Lawmakers and industry representatives said the price gap between legal packs, which sell for P125 to P200 ($2.13 to $3.40), and illicit packs priced as low as P30 ($0.51) is fueling demand, while also pointing to regulatory loopholes and misdeclaration of products as factors worsening the problem. Authorities are now considering measures including harmonizing vape tax rates, introducing minimum retail pricing, and strengthening coordination between regulatory agencies to curb illegal sales.

  • PMI Heads to Present at CAGNY Feb. 18

    PMI Heads to Present at CAGNY Feb. 18

    Philip Morris International announced that Group CEO Jacek Olczak and CFO Emmanuel Babeau will deliver a presentation at the Consumer Analyst Group of New York (CAGNY) Conference on February 18, at 10 a.m. ET. The event will be broadcast via live audio webcast, with presentation slides available online, and a replay accessible for six months. The webcast can also be accessed through PMI’s Investor Relations mobile app.

  • PMI’s Colorado Zyn Factory Producing During Construction

    PMI’s Colorado Zyn Factory Producing During Construction

    Philip Morris International gave the media a look inside its $600 million Zyn nicotine pouch manufacturing plant in Aurora, Colorado, this week. The 150-acre facility, which began construction in late 2024 and is part of PMI’s U.S. smoke-free product expansion, is expected to create 500 jobs when fully operational in 2026. Despite ongoing infrastructure work and significant portions of the main building still under construction, the plant produced its first Zyn products in September 2025, which have already reached the market.

  • BAT Extends Chair, Updates Board Movement

    BAT Extends Chair, Updates Board Movement

    British American Tobacco will extend Chair Luc Jobin’s tenure by up to two years, allowing him to remain in the role until the company’s April 2028 annual general meeting (AGM) while the board continues its search for a successor. Jobin, who joined the board in 2017 and became chair in 2021, will continue to stand for annual re-election despite the extension exceeding the UK Corporate Governance Code’s nine-year tenure guideline. The company said the move ensures leadership continuity during its ongoing transformation, following a succession review led by senior independent director Holly Keller Koeppel and the nominations committee. Koeppel will step down after the 2026 AGM, with Karen Guerra set to assume the senior independent director role and oversee the ongoing chair succession process.

  • Universal Appoints Diel as CFO

    Universal Appoints Diel as CFO

    Universal Corporation appointed Steven S. Diel as senior vice president and chief financial officer, effective April 1, succeeding Johan C. Kroner, who will remain with the company as a senior vice president through July 1, to support the transition. Diel, a Universal executive since 2018, brings more than 25 years of experience in finance, corporate development, and strategy, most recently serving as vice president and CFO of Universal Ingredients, and previously leading acquisitions totaling more than $350 million that helped establish the company’s ingredients segment. Chairman, president, and CEO Preston D. Wigner said Diel’s promotion reflects confidence in his financial leadership and strategic execution as Universal seeks to strengthen performance and drive long-term shareholder value.

  • Universal Posts Nine-Month, Q3 Results

    Universal Posts Nine-Month, Q3 Results

    Universal Corporation reported “solid results” for the nine months and third quarter ended December 31, 2025, supported by continued strength in its tobacco operations despite softer overall volumes and headwinds in its ingredients business. Nine-month revenue declined 2% to $2.2 billion, and operating income fell 3% to $183 million, reflecting lower tobacco sales volumes and higher fixed costs, although customer demand for most tobacco styles remained firm and third-party processing volumes increased. Third-quarter revenue dropped 8% to $861 million, with operating income down 21% to $82 million, driven by reduced tobacco shipments and inventory write-downs, while the ingredients segment faced tariff pressures, weaker consumer-packaged-goods demand, and higher depreciation costs. The company also strengthened liquidity through a refinancing and expansion of its revolving credit facility and highlighted sustainability progress, including a significant increase in renewable electricity use and continued farmer engagement across its global supply chain.

  • PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    Philip Morris International reported strong 2025 fourth-quarter and full-year results, driven largely by the continued expansion of its smoke-free product portfolio. The company recorded more than $40 billion in annual net revenues, including nearly $17 billion from smoke-free products, which accounted for 41.5% of total net revenues. Smoke-free shipment volumes rose 12.8% for the year, with PMI’s products now available in 106 markets and used by an estimated 43 million adult consumers. IQOS maintained a dominant position in heat-not-burn, holding about 76% global category share, while nicotine pouch brand Zyn continued rapid growth, particularly in the U.S., where shipment volumes reached 794 million cans for the year.

    PMI’s combustible business remained stable despite expected volume declines, supported by pricing strength and productivity improvements. Marlboro reached a record 11% global category share, while total company shipment volumes remained flat as growth in smoke-free products offset cigarette declines. The company also reported strong performance across multiple regions, including double-digit heated tobacco growth in Europe and sustained category leadership in Japan, where heat-not-burn products now exceed 50% of total nicotine offtake in several major markets.

    Looking ahead, PMI expects continued momentum, forecasting 2026 adjusted diluted EPS growth of 7.5% to 9.5% excluding currency effects. The company also introduced 2026–2028 targets calling for 6% to 8% organic net revenue growth and 9% to 11% adjusted EPS growth, driven primarily by high single-digit to low-teens expansion in smoke-free product volumes.

    In response to the financials, Morgan Stanley said it expects a modest negative market reaction to PMI’s fourth-quarter results and forward guidance, which were largely in line with expectations following the stock’s strong rally since December.

    “On balance, 4Q results were broadly in line, and guidance looks reasonable, but is unlikely to settle the debate around the stock,” Morgan Stanley wrote. “Bears continue to point to a 2H-weighted year with headwinds from IQOS competition and excise tax increases in Japan, the flavor ban in Poland, and continued competition in U.S. nicotine pouches. Bulls point to PM delivering the best mid-term growth in large-cap CPG despite these known headwinds. We are [rating the stock] Overweight, and continue to expect growth to reaccelerate in 2H as these headwinds dissipate, and for US Zyn trends to improve with the likely FDA authorization of Zyn Ultra.”