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Category: Business & Finance

  • PMI Execs Talk Financials

    PMI Execs Talk Financials

    Today (June 3), Philip Morris International presented at the 2025 dbAccess Global Consumer Conference, showcasing its strategic focus on smoke-free products amid a backdrop of both opportunities and challenges. The company reported strong growth in its smoke-free portfolio, while also managing a resilient combustible business through strategic price adjustments and cost management.

    PMI reported organic revenue growth between 6% and 8% and organic operating income growth of 10.5% to 12.5%. The company said it remains on course to have two-thirds of its revenue come from smoke-free products by 2030.

    PMI said its smoke-free product volume increased by more than 14%, and revenue from smoke-free products grew by over 20% organically. This category was led by its Zyn nicotine pouches, which saw over 50% growth in the U.S. during Q1 2025, and has plans for further expansion in Europe and other markets.

    IQOS experienced nearly 10% growth in Japan and over 7% in Europe despite regulatory challenges, with Veev holding the top position in five EU markets, focusing on profitable growth.

    Emmanuel Babeau, CFO of PMI, said the company plans to expand IQOS in the U.S. and enter new markets such as Turkey, Brazil, and India, and expects to reach a net debt to EBITDA ratio of 2x by the end of 2026.

  • El Septimo Cigars Reports Record Growth

    El Septimo Cigars Reports Record Growth

    El Septimo Cigars reported a 300% increase in revenue in Q1 2025 compared to Q2 2024, following the successful signing of distribution partnerships in more than 50 countries worldwide.

    The company did not provide revenue numbers, but said its growth follows El Septimo’s strategic expansion campaign across primarily North America, while including new market entries across Europe, Asia, the Middle East, and Latin America. “This global push not only broadened the company’s international footprint but also solidified its position in the ultra-premium cigar market,” the company said in a press release.

    “This quarter’s results are a direct reflection of our commitment to excellence, innovation, and global brand building,” said Zaya S. Younan, CEO of El Septimo Geneva. “Our expansion into over 50 new countries represents more than just numbers—it’s a testament to the global appetite for luxury experiences. We are not just selling cigars; we are defining a lifestyle.”

  • JTI Philippines Sees 23% Growth in Nicotine Pouches

    JTI Philippines Sees 23% Growth in Nicotine Pouches

    According to JTI, Nordic Spirit, the first nicotine pouch brand in the Philippines, is enjoying 23% monthly growth across the country. At a recent briefing in JTI’s office in Stockholm, Sweden, that included visiting journalists from the Philippines, Karin Tan, JTI’s director of reduced-risk products, said the product’s growth has been robust since it was introduced in May 2023.

    “There is actually traction in the market,” Tan said, citing data from major convenience stores such as 7-Eleven and Uncle John’s. “It is all about giving consumers pleasurable choices.”

    In a recent JTI survey of 7,000 consumers, 80% reported a positive experience using nicotine pouches. Consumers in the Philippines cited convenience, taste, and satisfaction in the product, and noted it was convenient to use in a country that contains so many no-smoking areas.

    Against this backdrop, JTI’s Vårgårda facility, located in Västra Götaland County on Sweden’s western coast, is gearing up for increased demand for nicotine pouches. The facility will soon produce Nordic Spirit for the UK, Canada, France, and the Philippines, according to factory lead Serkan Karasulu. 

  • BAT Sells $1.5B Stake in ITC

    BAT Sells $1.5B Stake in ITC

    Yesterday (May 28), British American Tobacco said it sold a $1.5 billion stake in Indian consumer goods company ITC at 413 Indian rupees per share. The company sold 313 million shares in ITC, representing 2.5% of ITC, according to the term sheet. This final amount exceeded its initial plan to sell up to 290 million shares in the deal, valued at approximately $1.4 billion.

    According to Reuters, the final sale price represented a 4.8% discount to ITC’s closing price of 433.90 rupees ($5.21) on Tuesday. Shares of ITC dropped nearly 3% to 421.70 rupees ($5.06) on Wednesday. BAT will remain ITC’s largest shareholder after the deal, according to LSEG data. Last year, BAT sold 436.9 million shares, or roughly 3.5% of ITC’s outstanding shares, for about $2 billion in what was India’s third-largest block deal.

    BAT said it would increase its 2025 $1.5 billion share buyback program by £200 million as a result of the deal, which is not expected to have any other impact on its annual outlook.

  • JT Launches Ploom AURA in Japan

    JT Launches Ploom AURA in Japan

    Japan Tobacco Inc. launched its next-generation heated-tobacco device today (May 27) in Japan, the Ploom AURA. The device will initially be available in its Ploom stores and CLUB JT online shop. In parallel, JT Group will roll out EVO, its exclusive and premium heated tobacco sticks, “to complement Ploom AURA and provide adult consumers with the latest and most technologically advanced propositions in the heated tobacco segment,” according to the company. A nationwide launch of Ploom AURA and EVO will start on July 1 in convenience stores and tobacco retail shops, and will roll out globally in the near future.

    “In the reduced-risk products [RRP] category, we are focusing on providing adult consumers with quality products, rooted in technology, consumer insights, and experience, and I truly believe Ploom AURA embraces all these aspects and more,” said Takehiko Tsutsui, executive vice president of RRPs.

    JT Group said it will continue to prioritize investments in the heated tobacco sticks segment through 2027, and will be investing 650 billion yen ($4.5 billion) in RRP, much for the Ploom AURA and its launch.

    “The RRP category is reshaping the global tobacco landscape, and I am confident that Ploom AURA and EVO will play key roles in supporting JT Group’s ambition of reaching mid-teens share in the HTS segment by 2028,” said Tsutsui.

  • BAT Responds to ITC Speculation

    BAT Responds to ITC Speculation

    British American Tobacco responded to the recent speculation relating to a potential disposal of part of its shareholding in ITC Limited. “BAT confirms that it is evaluating a possible disposal of a small part of BAT’s shareholding in ITC by means of an on-market trade,” the company said in a press release. “There can be no certainty that any such transaction will proceed, nor can there be any certainty as to the terms of any potential transaction. A further announcement will be made if and when appropriate.”

    The announcement was made on behalf of British American Tobacco by Caroline Ferland, Company Secretary, who likewise said the announcement contained inside information in relation to British American Tobacco for the purposes of Article 7 of the Market Abuse Regulation.

    “The securities referred to herein will not be, and have not been, registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act,” the company said.

    BAT is currently ITC’s top investor, with a 20.3% stake according to LSEG data. Last year BAT sold 436.9 million shares, or roughly 3.5% of ITC’s outstanding shares, for about $2 billion in what was India’s third-largest block deal ever.

  • Ispire Announces Huge Malaysian Expansion

    Ispire Announces Huge Malaysian Expansion

    Ispire Technology Inc. announced that it has received the interim license from the Malaysian Government for the manufacturing of nicotine products. The company said, “This is the first and only nicotine manufacturing license issued in Malaysia approved by both the Federal and State authorities and cements Ispire’s position as the only company with full authorization for export, import, and production.” The approval of the interim license also allows the company to begin manufacturing nicotine products in Malaysia immediately, as well as officially begin marketing its nicotine manufacturing capabilities externally.

    “Receiving the interim license for our Malaysian manufacturing operations is a significant milestone for Ispire as we progress towards positioning the company as a leading international provider of vaping hardware,” said Michael Wang, co-Chief Executive Officer of Ispire. “We can now officially begin manufacturing and marketing our nicotine products in Malaysia, with our Malaysian facility soon featuring 80 production lines, growing its capacity from the current six lines. Once the final license is approved in the coming months as we anticipate, our regulatory requirements in Malaysia will be complete and Ispire will have the first federal nicotine manufacturing license in the country. By diversifying our production base, we are strategically de-risking our production strategy and mitigating the concern of geopolitical factors increasing our pricing.”

  • Universal Announces Dividend Increase, Sets Annual Meeting

    Universal Announces Dividend Increase, Sets Annual Meeting

    Universal Corporation announced that its Board of Directors declared a quarterly dividend of $0.82 per share on the common shares of the company, payable August 4, to common shareholders of record at the close of business on July 14. This increase indicates an annualized rate of $3.28 per common share and a yield of approximately 5.66% based on the $58 per share closing price on May 19.

    “We are pleased to announce our 55th annual dividend increase as we continue to execute our business strategy and deliver on our commitment to returning value to our shareholders,” Preston D. Wigner, chairman, president, and CEO of Universal, said. “Our focus on consistent performance and operational excellence positions us well for continued success.”

    The Board of Directors set the company’s 2025 Annual Meeting of Shareholders for August 5, at 11 a.m. EST at the company’s headquarters.

  • Black Buffalo Appoints New CFO

    Black Buffalo Appoints New CFO

    Black Buffalo Inc. announced the appointment of Loren Eggleton as Chief Financial Officer yesterday (May 21). Eggleton brings over two decades of experience leading high-growth companies through transformative milestones across public and private markets, and will be responsible for overseeing the company’s financial strategy, operations, and capital structure as it scales its retail footprint, strengthens its omnichannel presence, and deepens investments in R&D, compliance, and supply chain infrastructure.

    “Loren brings an exceptional level of financial experience, professionalism, and cultural fit to Black Buffalo,” said Matthew Hanson, Chief Growth Officer of Black Buffalo, “Black Buffalo continues to attract very high-quality talent like Loren, who has proven to be immediately and positively impactful on the company and its continued rapid growth.”

    Prior to joining Black Buffalo, Eggleton served as the inaugural CFO at AppHarvest, where he played a critical role in the company’s journey from a 13-person startup to a publicly traded business on the Nasdaq. During his tenure, he led a successful merger at a $1 billion valuation, raised over $1 billion in financing, scaled the finance organization to support 1,000 employees, and oversaw key areas such as accounting, FP&A, treasury, investor relations, and IT.

  • Scandinavian Reports Q1 Results

    Scandinavian Reports Q1 Results

    Scandinavian Tobacco Group reported its net sales for the first quarter 2025 increased 1.3% to DKK 2 billion ($300 million) with a negative organic net sales growth of 8.8%. EBITDA before special items decreased 5.3% to DKK 317 million ($47.6 million) with an EBITDA margin of 16.1%.

    The reported net sales growth was driven primarily by the addition of the Mac Baren business and high double-digit growth in its XQS nicotine pouch brand, the company said. Organic net sales decline was impacted by lower consumption of handmade cigar sales in the U.S. and the discontinuation of online distribution of ZYN in the U.S. Temporary supply issues related to the go-live of SAP in its European factories phased some machine-rolled cigar sales from the first to later quarters.

    The U.S. market accounts for approximately 45% of the Group’s net sales. As a consequence of the recent changes in U.S. international trade policy—announced in April and resulting in increased tariffs of currently 10% on imported goods—and due to the translation effect from a lower U.S. dollar exchange rate, Scandinavian is adjusting its financial expectations for the full year 2025. The Group now expects reported net sales for 2025 to be in the range of DKK 9.1–9.5 billion ($1.37–1.43 billion), adjusted from the previous range of DKK 9.2–9.7 billion ($1.38–1.46 billion).

    The EBITDA margin decreased 1%-point compared with the first quarter of last year. The decline is driven by a combination of product and market mix, investments in regaining market shares in machine-rolled cigars in key European markets, as well as the expansion of our nicotine pouch business, the company said.