Marlboro Cigarettes, a product of Philip Morris International
Daniel Acker | Bloomberg | Getty Images
After years of declining smoking, tobacco giant Altria said it has seen a reversal as U.S. cigarette volumes were flat across the industry compared to the previous year.
However, the company declined to provide a forecast of how things would shape up in 2021 as it is unclear whether the factors that contributed to this trend would continue.
The pandemic brought more people inside their homes, giving smokers more opportunities to rest from their busy days and light up more often, especially amid higher levels of stress and anxiety as a result. on the economy and health crisis. Home workers no longer worked in a smoke-free office and consumers generally had more disposable income from restrictions on other forms of entertainment such as restaurants and bars, theaters. film and travel.
In Altria’s own business, the trend was more pronounced. Total cigarette loads for the Marlboro manufacturer fell 0.4% from 2019, and up 3.1% in the fourth quarter. In comparison, Altria cigarette volume fell from 2018 to 2019, 7.3%.
Altria said it was paying close attention to trends that could affect cigarette sales in the future.
“Looking ahead, we expect the 2021 cigarette industry size shifts to have a significant impact on home living habits, unemployment rates, fiscal stimulus, cross-sectoral mobility, timing and scope of COVID-19 vaccine use and consumer buying behavior after vaccination, “Altria said in an employment conference call.
Despite the expected declines in smoking, Altria has been investing in alternatives to cigarettes such as the iQos heating tobacco product and nicotine pads.
Shares of Altria on Thursday closed up 1.98% at $ 42.65. The stock has fallen nearly 15% over the past year, giving it a market value of $ 79.26 billion.
In the fourth quarter, the company reported net revenue of $ 1.92 billion, or $ 1.03 per share, compared to a loss of $ 1.81 billion a year ago. Without items, Altria earned 99 cents per share, which was lower than analysts ’estimates. Revenue was better than expected, rising to $ 6.3 billion from $ 6 billion a year ago.
For 2021, the company expects to earn $ 4.49 to $ 4.62 per share after changes.