Altria Group Exceeds Expectations in Q1 2025 with Strong Tobacco Business Performance
Altria Group, a leading tobacco company, has reported impressive results for the first quarter of 2025. In a conference call earlier today, Altria's CEO Billy Gifford and CFO Sal Mancuso highlighted the company's strong performance in a challenging environment.
The smokeable products segment delivered solid adjusted operating company income growth, driven by the strength of Marlboro. This is a significant achievement for Altria, as it continues to navigate a competitive marketplace. The oral tobacco products segment also maintained momentum, with Helix delivering strong performance in a very competitive environment this quarter.
Helix's reported shipment volume grew 18% year-over-year, exceeding 39 million cans. On retail, the company expanded its share of the oral tobacco category to 8.8%, an increase of 1.8 share points versus the prior year and 1/10 of a share point sequentially. In addition, one's share of the nicotine pouch category was 17.9%, an increase of 0.5 share point versus the prior year.
These results demonstrate Helix's ability to grow its volume and share while maintaining a strong brand equity among loyal consumers. As a result of responsible brand-building investments, including the new It's On! campaign, consumer impressions of one grew by nearly 5x versus the prior year, exceeding $200 million in the first quarter.
Looking ahead, Helix plans to maintain this momentum by bringing its own campaign to more consumers and focusing on equity investments behind the brand in new and existing channels. This strategy is likely to yield further success for Altria's oral tobacco products segment.
The e-vapor category also showed growth, with the illicit flavored disposable market driving category expansion. At the end of the quarter, we estimate that the e-vapor category included more than 20 million vapors, up over $2.6 billion versus a year ago. Disposable papers increased by an estimated $4 million to approximately $14 million during the same period.
To address the illicit e-vapor issue, Altria remains focused on advocating for regulatory reforms to accelerate product authorizations and enhance enforcement against illicit actors. This is an important step in ensuring that the company's business practices are aligned with industry standards and regulations.
Overall, Altria Group's Q1 2025 results demonstrate its ability to navigate a challenging environment while delivering strong performance across its tobacco businesses. The company's commitment to responsible brand-building investments and advocacy for regulatory reforms is likely to yield further success in the future.
