Q2 numbers
Oral tobacco strength and smokeables weakness
In Q2, revenues in the oral tobacco products segment grew nearly 6% YoY to $753 million, driven mainly by higher pricing, partly offset by lower shipment volume. Domestic shipment volume was down 1%, mainly due to retail share losses. Oral nicotine pouches were the main growth driver of this segment, with the on! brand in particular delivering a strong performance.
In the US, the nicotine pouch category now makes up 52% of the oral tobacco category. Total US oral tobacco category share for on! nicotine pouches stood at 8.7%, up 0.7 share points from last year. On!’s shipment volume increased 26.5% YoY to 52.1 million cans in the quarter.
On the other hand, the smokeable products segment saw revenues decline by nearly 3% YoY to $5.3 billion, driven mainly by lower shipment volume. Domestic cigarette shipment volume fell 10.2%, due to headwinds from the growth in illicit disposable e-vapor products, discretionary income pressures on consumers, and retail share losses.
Marlboro’s retail share of the total cigarette category dropped 0.9 share points to 41% compared to last year. The brand’s share of the premium segment grew 0.2 share points to 59.5% in Q2.
Outlook
For the full year of 2025, Altria expects adjusted EPS to range between $5.35-5.45, representing a growth of 3-5% YoY.