China Tobacco International (HK) Company Limited reported strong full-year results for 2025, with revenue rising 11.5% year-on-year to HK$14.6 billion ($1.9 billion), lifting gross profit to HK$1.5 billion ($191 million) and net profit to HK$1.05 billion ($136.5 million), up 16%. Earnings per share increased to HK$1.42 ($0.18) from HK$1.23 ($0.16), supported by lower finance costs and higher other income, which drove a nearly 15% rise in profit before tax. Reflecting its solid financial performance and cash flow, the board recommended a final dividend of HK$0.33 ($0.043) per share, bringing the full-year payout to HK$0.52 ($0.068), a 13% increase that underscores the company’s commitment to creating shareholder value.
Category: Business & Finance
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Nebraska Cigarette Tax Increase Fails to Advance
A proposal to raise Nebraska’s cigarette tax and increase levies on vaping products failed to advance in the state legislature after a cloture motion to end debate fell short. Danielle Conrad led a two-day filibuster against Legislative Bill 1124, arguing the measure would place a disproportionate burden on lower-income residents, while a group of fiscal conservatives also opposed the bill on anti-tax grounds. The proposal would have raised the state cigarette tax from 64 cents to $1.64 per pack, potentially generating up to $50 million annually to help address Nebraska’s budget deficit.
Supporters, including Appropriations Committee Chair Rob Clements, had promoted the measure as a revenue tool to offset rising Medicaid costs amid a projected budget shortfall of more than $100 million. A compromise amendment to remove the cigarette tax increase while retaining a higher tax on vape products — expected to generate about $6 million — was briefly adopted but ultimately voided after the cloture vote failed.
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PMI Declares $1.47 Quarterly Dividend
The Board of Directors of Philip Morris International Inc. today (March 5) declared a regular quarterly dividend of $1.47 per common share, payable on April 13, to shareholders of record as of March 19. The ex-dividend date is March 19. For more details, visit www.pmi.com/dividend.
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BAT Facing UK Lawsuit Over North Korea Sanctions
British American Tobacco is facing a London High Court lawsuit from over 100 current and former shareholders who allege the company failed to properly disclose to markets its breaches of U.S. sanctions related to business in North Korea, Reuters is reporting. The claims follow BAT’s 2023 settlement with U.S. authorities, in which a subsidiary admitted to conspiring to violate sanctions and commit bank fraud by selling tobacco products to North Korea between 2007 and 2017, resulting in a $635 million payment. The lawsuit, filed on February 27, accuses BAT of withholding information about its North Korea operations for over a decade, though the value of the claim and further details have not been disclosed.
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Scandinavian Reports Financials, Proposes Dividend
Scandinavian Tobacco Group reported a 1.8% decline in full-year 2025 net sales to DKK 9.0 billion ($1.4 billion), with organic growth down 3.1%, or -1.8% excluding discontinued third-party nicotine pouch distribution in its online business. EBITDA margin before special items was 19.8%, in line with guidance, while free cash flow before acquisitions fell to DKK 595 million ($95.2 million) due to delayed receivables linked to a new ERP rollout in Europe. Adjusted EPS declined to DKK 10.8 from DKK 13.7 ($1.73 from $2.19) a year earlier. The board will propose an ordinary dividend of DKK 4.50 ($0.72) per share, representing a 42% payout ratio. In the fourth quarter, net sales fell 4.6% to DKK 2.3 billion ($368 million), with margin pressure driven by product mix shifts toward nicotine pouches and increased promotional spending in North America.
For 2026, the group expects reported net sales growth at constant exchange rates of between -2% and 2%, EBIT margin before special items of 13.0%–14.5%, free cash flow before acquisitions of DKK 950 million to DKK 1.2 billion ($152 million to $192 million), and adjusted EPS of DKK 9–11. Management said 2026 will focus on earnings stabilization under its Focus2030 strategy, with continued investment in handmade cigars and nicotine pouches, while working capital is expected to normalize in the first half following the ERP-related delays.
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Black Buffalo Recognizes Retailers as Sales Grow
Black Buffalo says it continues to expand its footprint nationwide as demand grows for modern smokeless alternatives, with the brand highlighting strong retail performance across the U.S. With its annual Herd Preferred Awards, the company reported that its top-performing partners — including Sheetz, Wawa, Pilot Company, and Love’s Travel Stops —are driving increased can volume and higher cans per week (CPW), reflecting sustained momentum at the backbar. According to Black Buffalo, its adult consumer base, dubbed “The Herd,” is highly engaged, with shoppers traveling an average of nearly 13 miles to purchase the product, underscoring brand loyalty and pull-through at retail. The company said it remains focused on responsible growth and increasing retail accessibility as it scales distribution across key markets.
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BAT Uganda Points to Illicits for 18% Revenue Drop
British American Tobacco Uganda Ltd. reported an 18% drop in gross revenue to Shs 67 billion ($18.1 million) for fiscal 2025, citing a surge in illicit cigarette sales, according to audited results. Net revenue fell 21% to Shs 36.3 billion ($9.8 million), while total comprehensive income declined 19% to Shs 9.8 billion ($2.6 million). The company attributed the decline to rising tax-evaded cigarette consumption, which research shows reached 45% of the market by December 2025, up from 34% the previous year — equivalent to an estimated Shs 53 billion ($14.3 million) loss in government revenue. Operating costs fell 21% to Shs 24 billion ($6.5 million), but net asset value dropped sharply to Shs 32.5 billion ($8.8 million) from Shs 49.3 billion ($13.3 million) in 2024.
Despite the downturn, BAT Uganda’s tax contributions rose 4% to Shs 46.4 billion ($12.5 million), aided by capital gains from the sale of a non-strategic asset. The board proposed a final dividend of Shs 199 ($0.054) per share, down 5% from 2024, payable July 31 to shareholders on record as of July 24. Company secretary Paul Mbuga emphasized the need for a multi-agency government response, particularly at the South Sudan border, to combat illicit imports, noting that contraband cigarettes often bypass digital tax stamps and health warnings, undercutting prices and presenting public health risks.
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Geek Bar Returning to Europe
Geek Bar announced it is officially returning to the European market, launching its Geek Bar Spark across “select countries” this month, with “additional markets and flavor options to follow.” The new-generation, reusable system includes a fast-charging battery, supports up to 1,000 puffs per prefilled pod, and offers new “Europe-specific flavors,” including Moonshine Cherries, Tropical Punch, Pineapple Lemon Fizzy, and Apple Cider.
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Herzog Talks Industry Shifts, Expects Market to Hit $67B by 2035
Goldman Sachs Managing Director Bonnie Herzog described the U.S. nicotine market as “attractive and growing,” projecting total revenues to reach about $67 billion by 2035 as the profit pool shifts decisively toward smoke-free products. Speaking last week at CSP’s Convenience Retailing University, she said cigarettes, which currently generate about 70% of industry operating profit, are expected to fall to roughly 50% by 2035, with smoke-free categories becoming the primary engine of profit growth due to stronger unit economics. Smoke-free products already account for about 48% of U.S. nicotine volumes, a figure she expects to rise to around 75% over the next decade, driven by downtrading and cross-category movement.
On e-vapor, Herzog said illicit products represent roughly 70% of the market today, a dynamic she said is suppressing growth in the formal channel and weighing on retailer sentiment amid limited enforcement. While she expects illicit penetration to decline over time, she cautioned that vapor will likely underperform other reduced-risk categories until enforcement improves, adding that British American Tobacco is positioned to remain the largest branded player.
In modern oral, Herzog forecast nicotine pouches to reach nearly $11 billion in revenue by 2035 and become the second-largest category by volume behind e-vapor. She highlighted continued momentum for Zyn from Philip Morris International, citing retailer survey data showing strong fourth-quarter gains supported by promotions, and described Velo Plus from Reynolds American Inc. as a “fierce” competitor in the expanding pouch segment.
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BAT’s Velo Pouches Back on Market in Kenya
BAT Kenya resumed sales of its Velo oral nicotine pouches following regulatory clarity, signaling a renewed push into non-combustible products amid declining cigarette consumption, according to Capital Business. Company officials said this “regulatory clarity” involved confirming that oral nicotine pouches can be marketed and retailed under current rules rather than being in a grey zone or treated the same as banned products. The move supports the company’s strategy to diversify revenue streams in a market challenged by rising illicit tobacco sales. BAT Kenya reported a 10% drop in turnover in 2025 to Sh23.2 billion ($176.6 million), with Velo contributing about Sh232 million ($1.8 million), or roughly 1% of total revenue, between July and December 2025.
Finance Director Philemon Kipkemoi said the return was enabled by a regulatory environment now accommodating oral nicotine products. With local manufacturing divested, Velo is currently imported from Pakistan, though local production may be reconsidered depending on performance. Globally, British American Tobacco has reached 34 million non-combustible product users, 68% of its 2030 target, and aims for 50% of revenue from such products by 2035. In Kenya, Velo could contribute 15–25% of total revenue within three to five years, forming a key part of BAT’s strategy to expand alternative nicotine products in line with evolving regulations and consumer trends.