Marlboro Cigarettes, produced by Philip Morris International
Daniel Acker | Bloomberg | Getty Images
After years of accelerating the decline in smoking, tobacco giant Altria said it saw a reversal in the trend, as U.S. cigarette volumes were flat across the industry compared to last year. previous.
However, the company declined to provide a prediction on how things would form in 2021 because it is unclear whether the factors that contributed to this trend would continue.
The pandemic caused more people in their homes, giving more opportunities for smokers to take a break from their hectic days and light up more often, especially amid general levels of anxiety and stress due to the economy and the health crisis. Employees working from home were no longer in a smoke-free office and consumers used to have disposable income due to restrictions on other forms of entertainment, such as restaurants and bars, movie theaters and travel.
In Altria’s own business, the trend was more pronounced. The total volume of cigarette shipments for the Marlboro manufacturer fell 0.4% from 2019 and increased 3.1% in the fourth quarter. In comparison, the volume of Altria cigarettes between 2018 and 2019 fell by 7.3%.
Altria said she pays close attention to trends that may influence future cigarette sales.
“Looking to the future, we expect cigarette industry volume trends for 2021 to be more influenced by smokers’ stay-at-home practices, unemployment rates, fiscal stimulus, category movement cross-cutting, the timing and breadth of COVID-19 vaccine deployment and consumer buying behavior of vaccine, ”Altria said in a conference call on earnings.
Faced with projected declines in smoking, Altria has invested in alternatives to cigarettes, such as its iQos heated tobacco product and nicotine bags.
Shares of Altria closed 1.98% on Thursday at $ 42.65. Shares have fallen nearly 15% over the past year, giving it a market value of $ 79.26 million.
In the fourth quarter, the company reported net income of $ 1.922 billion, or $ 1.03 per share, compared to a loss of $ 1.821 billion years ago. Excluding the articles, Altria earned 99 cents per share, which was below analysts ’estimates. Revenue was better than expected, rising to $ 6.3 billion, up from $ 6 billion the previous year.
By 2021, the company expects to earn between $ 4.49 and $ 4.62 per share after adjustments.