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Category: Business & Finance

  • Vendix Expands Tobacco Vending Machine Technology

    Vendix Expands Tobacco Vending Machine Technology

    Tobacco retail technology company Vendix is continuing its market rollout with a presentation at the T2000 on Tour exhibition in Rome, June 6–7, following its debut in Catania earlier this year. The company, founded in 2025 as a joint venture between Microhard and FAS International, is positioning its latest-generation vending machines for tobacconists seeking expanded sales capabilities outside traditional store hours.

    Vendix will showcase touchscreen-enabled vending systems with capacities ranging from 300 to 1,400 packs, designed for indoor and outdoor installation and equipped with remote monitoring and management functions. The machines support both cash and cashless payments and include integrated services such as bill payments and digital transactions, alongside real-time performance tracking for operators.

    CEO Andrea Montanari said the systems are intended to support sales after closing time, highlighting a shift toward more digital, service-oriented retail models for tobacconists. The company said its platform is designed to combine operational control with expanded consumer access, reflecting broader trends in automation and retail tech within tobacco distribution channels.

  • BAT Malaysia Reports First-Ever Loss

    BAT Malaysia Reports First-Ever Loss

    British American Tobacco Malaysia reported its first quarterly loss since the company’s formation through the 1999 merger of Rothmans of Pall Mall (Malaysia) and Malaysian Tobacco Company, citing rising regulatory costs and worsening illicit cigarette trade in Malaysia. The company posted a net loss of RM35.2 million ($8.8 million) for the first quarter ended March 31, compared with a net profit of RM23.3 million ($5.8 million) a year earlier, while revenue declined to RM160.3 million ($40 million) from RM322 million ($80.5 million).

    Operating expenses increased 74.7% year-over-year to RM64.68 million (16.2 million), driven largely by one-off costs tied to the implementation of Malaysia’s retail tobacco display ban and restructuring linked to a new route-to-market strategy. BAT Malaysia said legal combustible cigarette volumes fell 4.5% during the quarter, while illicit cigarette incidence rose to 56.7% of total industry volume from 54.4% in the prior quarter, marking the first increase since 2021.

    The company declared a first interim dividend of five sen ($0.0125) per share, down from 7.5 sen ($0.0188) a year earlier. Management said the first quarter represented a transition period as the company implemented operational changes intended to improve long-term competitiveness and efficiency.

  • IQOS Ranks No. 74 in Global Brands

    IQOS Ranks No. 74 in Global Brands

    Philip Morris International said its IQOS heated tobacco brand has entered Kantar’s BrandZ 2026 ranking of the world’s 100 most valuable global brands for the first time, debuting at No. 74. The recognition marks a milestone for IQOS as PMI continues expanding its smoke-free portfolio and positioning the brand beyond traditional tobacco categories through technology, design, and reduced-risk product innovation.

    PMI said IQOS now has more than 35 million users globally, with the majority having fully transitioned away from cigarettes. The company also noted that IQOS surpassed $10 billion in annual net revenues within a decade of launch, contributing significantly to PMI’s broader smoke-free business, which generated nearly $17 billion in net revenues in 2025. The company has increasingly centered its long-term growth strategy around smoke-free products, including heated tobacco and nicotine alternatives.

    The Kantar BrandZ rankings evaluate global brands using a combination of financial performance and consumer brand equity research across more than 22,000 brands in 54 markets. IQOS joined a list that includes major global technology and consumer brands such as Google, Alibaba Group, and Xiaomi.

  • BAT Kenya Says Proposed Laws Threaten 100K Jobs

    BAT Kenya Says Proposed Laws Threaten 100K Jobs

    British American Tobacco Kenya warned that proposed amendments to Kenya’s tobacco control laws could cost the government an estimated Sh12 billion ($92 million) in annual revenue and threaten more than 100,000 jobs across the tobacco supply chain. In a memorandum submitted to Kenya’s National Assembly, BAT Kenya said provisions in the Tobacco Control (Amendment) Bill, 2024, could worsen the illicit cigarette trade, which the company estimates already accounts for about 45% of the country’s cigarette market.

    The proposed legislation includes bans on flavors in tobacco and nicotine products, tighter regulation of e-cigarettes and nicotine pouches, expanded graphic warning requirements, potential plain packaging rules, additional licensing obligations for retailers, restrictions on single-use plastics, and a proposed 100-metre limit on tobacco sales locations. BAT Kenya also objected to plans to classify electronic cigarettes and oral nicotine pouches as tobacco products, arguing the bill does not distinguish between combustible and non-combustible nicotine products.

    BAT Kenya Managing Director Crispin Achola said the company supports public health goals but called for a more balanced and evidence-based regulatory framework. The company urged lawmakers to conduct broader stakeholder consultations and pointed to countries including the United Kingdom, Sweden, and New Zealand as examples of markets using differentiated regulation for alternative nicotine products.

  • PMI Launches Five-City Tour as Part of America250 Initiative

    PMI Launches Five-City Tour as Part of America250 Initiative

    Philip Morris International announced a nationwide America250 initiative through its U.S. business this week, combining community investment, innovation programs, manufacturing expansion, and brand marketing tied to the country’s 250th anniversary celebrations. The initiative builds on PMI U.S.’s previously announced $1 billion investment in U.S. manufacturing, operations, and workforce development, alongside continued expansion of its smoke-free product portfolio, including Zyn nicotine pouches and IQOS heated tobacco products.

    The program includes a $250,000 Community Futures Challenge for entrepreneurs and civic innovators, a five-city innovation tour across Phoenix, Jacksonville, Pittsburgh, Nashville, and Stamford, Connecticut, and expanded volunteer and charitable activities. Since 2022, PMI U.S. said it has contributed more than $35 million to charitable organizations and plans to mobilize its 3,300-person workforce for community service initiatives focused on food insecurity, housing support, and essential services.

    PMI U.S. also highlighted ongoing investments in modern nicotine manufacturing and commercialization, including preparations for future product launches and expansion of its Aurora, Colorado, facility. As part of the campaign, the company plans to release limited-edition America250-themed Zyn and IQOS products for adult nicotine consumers, with broader promotional activity continuing through 2026 ahead of a planned Next.Now Summit in Phoenix in early 2027.

  • USSTC Moving Facilities from Tennessee to Kentucky

    USSTC Moving Facilities from Tennessee to Kentucky

    U.S. Smokeless Tobacco Company LLC announced plans to consolidate manufacturing operations as part of a long-term strategy to modernize production and improve operational efficiency. The Altria subsidiary will gradually transition manufacturing from its 800,000-square-foot Nashville, Tennessee, facility to a new 270,000-square-foot plant to be built on its existing campus in Hopkinsville, Kentucky, with Nashville operations expected to conclude in early 2028. The move is intended to centralize processing, production, and finishing activities for major smokeless tobacco brands, including Copenhagen, Skoal, Red Seal, and Husky.

    USSTC said the consolidation is expected to reduce fixed-cost inefficiencies, generate operational savings, and improve manufacturing resilience as market conditions evolve. The company plans to sell its more than 30-acre downtown Nashville campus, which currently employs over 300 workers, while encouraging employees to apply for positions in Hopkinsville or Richmond, Virginia. Employees not relocating will be offered severance and transition support. Hopkinsville, where the company already employs roughly 200 full-time workers, will become the primary production hub for USSTC’s smokeless tobacco operations using tobacco sourced primarily from Tennessee and Kentucky growers.

  • ITC Posts 32% Increase in Cigarette Revenue

    ITC Posts 32% Increase in Cigarette Revenue

    ITC Limited reported a marginal rise in quarterly adjusted profit as pricing gains in its cigarette business helped offset the impact of higher excise duties and rising input costs. Profit before exceptional items and tax increased 4.3% year-on-year to 66.9 billion rupees ($669.2 million), while total revenue rose 17% to 217 billion rupees ($2.2 billion). Cigarette revenue, which remains the company’s primary earnings driver, climbed about 32% to 110.66 billion rupees ($1.1 billion), supported by price increases across key brands and a shift in product mix.

    The company said profitability was pressured by India’s excise duty hike on cigarettes and higher raw material costs, including edible oil, soap noodles, and packaging inputs, which rose due to supply chain disruptions and geopolitical tensions linked to the Middle East. Analysts noted that price hikes of 20%–40% across major cigarette brands were not sufficient to fully offset the tax increase, suggesting continued near-term margin pressure despite resilient demand.

    Performance across other segments was mixed, with the consumer goods division posting 15% revenue growth and an improvement in EBITDA margin to 11%, while the agri-business segment declined about 16% amid global trade disruptions affecting commodities such as rice, coffee, and leaf tobacco.

  • PMI Announces Andolina as Next CFO

    PMI Announces Andolina as Next CFO

    Philip Morris International appointed Massimo Andolina as its new Group Chief Financial Officer, effective August 1, succeeding Emmanuel Babeau, who will remain with the company as Strategic Advisor to CEO Jacek Olczak until March 2027 to support the transition. Andolina, currently president of PMI’s Europe Region, has been credited with driving strong smoke-free growth and financial performance across the company’s largest region, while previously leading global operations and transformation initiatives that improved efficiency and supply-chain resilience.

    Olczak described Andolina as a respected leader with deep company knowledge and a strong record in innovation and growth. PMI also praised Babeau’s six-year tenure, during which the company strengthened its smoke-free business, completed the acquisition of Swedish Match in 2022, and increased smoke-free products’ share of net revenues to 43% in Q1 2026.

  • Scandinavian Reports Steady Progress in Seasonally Low Quarter

    Scandinavian Reports Steady Progress in Seasonally Low Quarter

    Scandinavian Tobacco Group A/S reported a steady start to 2026 with its Q1 interim results, marking the first quarter under its new five-year strategy, Focus2030. Management emphasized early execution on priorities, including stabilizing earnings in machine-rolled cigars and smoking tobacco, revitalizing the handmade cigar segment, and expanding nicotine pouches. CEO Niels Frederiksen highlighted that while the quarter is seasonally weak, the company is laying the groundwork for longer-term growth and sustained shareholder value.

    Net sales for the quarter were DKK 1.859 billion ($297 million), down 6% year-on-year, though the decline narrowed to -0.6% in constant currencies, with timing effects and a -5.2% foreign exchange impact weighing on reported figures. Performance was mixed across categories: machine-rolled cigars showed stabilization supported by power brands in Europe, handmade cigars delivered 8% organic growth, and the XQS nicotine pouch brand continued strong momentum with more than 13% market share in Sweden. Profitability remained broadly stable, with EBITDA before special items rising slightly to 17.2% margin and EBIT margin holding at 10.4%, despite a small negative impact from amortization changes.

    Cash generation was solid for the first quarter, with free cash flow before acquisitions of DKK 158 million ($25.3 million), broadly in line with last year despite working capital timing differences. Adjusted earnings per share declined to DKK 1.1 ($0.176), while return on invested capital fell to 7.8% and leverage increased to 3.0x net debt/EBITDA. The company maintained its full-year 2026 guidance, expecting constant-currency net sales growth of -2% to +2%, EBIT margin of 13.0%–14.5%, and free cash flow of DKK 950–1,200 million ($152–192 million), signaling confidence in its ongoing strategic transition.

  • Universal Ups Dividend, Sets Annual Meeting for Aug. 4

    Universal Ups Dividend, Sets Annual Meeting for Aug. 4

    Universal Corporation announced a quarterly dividend increase to $0.83 per share, payable on August 3, to shareholders on record as of July 13. The increase raises the annualized dividend to $3.32 per share and implies a dividend yield of approximately 6.1% based on the company’s May 18 closing share price of $54.46. The move extends Universal’s track record of annual dividend growth to 56 consecutive years, underscoring its focus on shareholder returns and stable cash generation.

    Chairman, president, and CEO Preston D. Wigner said the dividend increase reflects the strength of the company’s business strategy, operational consistency, and long-term customer relationships across its global agriproducts platform. Management emphasized that predictable dividend growth remains a core part of Universal’s shareholder value proposition, supported by diversified sourcing, integrated processing capabilities, and a broad international supply chain network spanning more than 30 countries.

    The company also confirmed that its 2026 Annual Meeting of Shareholders will take place on August 4 at its headquarters, with a record date of June 4.