Tobacco

The Board of Directors of Philip Morris International Inc. has increased the company's regular quarterly dividend by 8.8% to an annualized rate of $6.40 per share. The new quarterly dividend of $1.60 per share, up from $1.47 per share, is payable on October 26, 2026, to shareholders of record as of October 2, 2026, with the ex-dividend date also set for October 2, 2026. PMI has increased its annual dividend every year since becoming a public company in 2008, representing a total increase of 248%, or a compound annual growth rate of 7.2%.

Philip Morris International reported second-quarter revenues of $11.19 billion, up 10.4% year on year and 5.5% above analysts' consensus estimates, the biggest estimate beat among the 13 beverages, alcohol, and tobacco stocks tracked. Vita Coco posted the group's best quarter, with revenues of $216.2 million, up 28.1% year on year and 3% ahead of expectations, and the highest full-year guidance raise among its peers, though its stock is down 22.7% since reporting and trades at $57.55. Celsius delivered the weakest performance against estimates, with revenues of $817.9 million, up 10.6% year on year but 6.2% short of expectations, missing significantly on EBITDA and EPS, and its stock is down 2.3% at $28.48. Zevia reported revenues of $45 million, up 1.1% year on year and 1.8% above expectations, while Boston Beer's revenues of $568.3 million fell 3.3% year on year and were in line with expectations. As a group, the 13 stocks beat consensus revenue estimates by 1% and guided next-quarter revenue 2.2% above, yet their shares are down an average of 7.1% since the latest results.

Altria Group's smokeable products business delivered 4.5% price realization in the second quarter of 2026, supported by strong net pricing for Marlboro that was partly offset by the mix impact from Basic's volume growth. Marlboro's retail price was about 7% higher year over year in the quarter, even as the segment's domestic cigarette shipment volume fell 3.2% and shipments adjusted for trade inventory movements declined an estimated 4.5%. Smokeable products revenues net of excise taxes rose 2%, adjusted OCI increased 2.4% to $3.018 billion, and adjusted OCI margin expanded 0.3 percentage points to 64.8%. Marlboro's overall retail share fell 1.5 percentage points to 39.5%, though its share of the premium segment held at 59.6%, while the cigarette industry's discount retail share rose 2.6 percentage points to 33.8% and Basic's retail share climbed to 2.9% from 0.6% a year earlier. Reported shipment volume for Altria's discount cigarette brands, including L&M and Basic, rose 67.3% year over year. For comparison, Philip Morris International reported nearly 10% pricing variance in its combustible business, helping international combustibles net revenues grow 6.4% organically, while Turning Point Brands expanded Zig-Zag adjusted gross margin to 57.3% from 49.1% a year earlier.

Altria Group raised its quarterly dividend by 4.7% to $1.11 per share, an annualized payout of $4.44 per share and a yield of over 6.5%. The increase, announced Aug. 27, extends Altria's streak as a Dividend King to 57 consecutive years of paying and raising its annual dividend. In the first half of 2026, Altria reported net revenue of over $11.5 billion, up 1.6% from the same period in 2025, while adjusted diluted earnings per share grew nearly 5%. Smokeable product shipment volume declined 2.7% and oral tobacco product shipment volume fell 6% in the half, though On! volume rose 5.1%. The new dividend would pay out $2.22 over six months, roughly 79% of adjusted diluted earnings through the first half of 2026, while free cash flow of nearly $2.9 billion came in below the nearly $3.6 billion in dividends paid before the increase, and cash and equivalents fell to nearly $2.4 billion at the end of June from nearly $4.5 billion at the end of 2025.

PMI U.S., the American arm of Philip Morris International, announced the expansion of its ZYN nicotine pouch portfolio to include new strengths and a new product line, ZYN ULTRA, offering legal-age adults more smoke-free choices. The flagship ZYN dry pouch lineup now includes 1.5 mg and 8 mg strengths in addition to the existing 3 mg and 6 mg, while ZYN ULTRA, a moist pouch with higher moisture content, received FDA marketing authorization for 11 products in August 2026, including ten 9 mg and one 11 mg strengths. These additions build on ZYN's status as the first nicotine pouch authorized by the FDA in January 2025 and the first to receive modified risk tobacco product orders in June 2026, allowing PMI to communicate reduced health risks compared to cigarettes. In Q4, PMI U.S. will transition its 3 mg and 6 mg dry pouches to 20 pouches per can, a preferred package size. CEO Stacey Kennedy emphasized the company's commitment to providing alternatives for the 45 million legal-age American nicotine users, with ZYN manufactured in the U.S., including a new facility in Aurora, Colorado.

Philip Morris International has raised its full-year outlook to reflect a favorable foreign-exchange impact of about $0.24, while maintaining its focus on smoke-free products and targeting low-double-digit to low-teens medium-term EPS growth. CEO Jacek Olczak said the guidance revision is solely due to currency movements, with a favorable third-quarter effect of about $0.01. In Japan, the heated-tobacco market is stabilizing after tax-related price increases, and IQOS has maintained a high share of the premium segment. The company is preparing to launch IQOS ILUMA in the U.S. pending FDA authorization, and has expanded its ZYN nicotine pouch line with more than 20 new stock-keeping units, including higher nicotine strengths. Olczak still expects the U.S. nicotine-pouch category to grow above 20% over the longer term, and reiterated that dividend growth remains the top capital-return priority.

Philip Morris International Inc. raised its 2026 full-year reported diluted EPS forecast to a range of $7.28 to $7.43, reflecting currency only, and updated its third-quarter adjusted diluted EPS forecast to $2.29 to $2.34. Excluding a total adjustment of $1.07 per share, the adjusted diluted EPS forecast of $8.35 to $8.50 represents a projected increase of 10.7% to 12.7% versus $7.54 in 2025. Excluding a favorable currency impact of $0.24 per share, this implies growth of 7.5% to 9.5%. The company's Group CEO, Jacek Olczak, is addressing investors at the 2026 Barclays Global Consumer Conference in Boston today.

Turning Point Brands aims to double its modern oral nicotine market share to 10% by 2030, potentially creating a $1 billion business if the U.S. category reaches $10 billion. CEO Graham Purdy told investors at the IDEAS Conference that the company's current share is about 5% and that the category was approximately $5 billion in 2025. The company is expanding its FRĒ and ALP nicotine-pouch brands through convenience-store distribution, increased marketing, and a larger sales force, and may need to roughly double its store count to meet its target. Modern oral sales are growing rapidly, but margins are currently pressured by overseas manufacturing, freight, and tariffs; Turning Point expects margins could approach 70% with domestic production. Legacy Stoker's tobacco continues providing strong cash flow, with the company holding about 60% of the large-format moist-snuff segment and roughly 30% of the chewing-tobacco category.

AIR Global PLC announced that shareholders at an extraordinary general meeting approved all proposals, including the repurchase of 5 million ordinary shares from Harraden Circle Investors at $10.49 per share, totaling $52.45 million. The repurchase is part of a prepaid share forward agreement entered into on May 11, 2026. Shareholders also granted the company general authorities for future off-market and open-market share repurchases, though no other buybacks are currently planned. Additionally, amendments to the company's articles of association were approved to allow notices of general meetings to be published on its website. The votes were overwhelmingly in favor, with over 92% of total issued share capital supporting the main proposals.

The FDA has authorized Swedish Match USA, a U.S. affiliate of Philip Morris International, to market 11 ZYN ULTRA moist oral nicotine pouch products following scientific review. The authorizations cover all 9mg ZYN ULTRA variants and one 11mg Smooth variant, while additional 11mg products remain under FDA review. ZYN ULTRA, which has higher moisture content than the flagship ZYN range and is free of tobacco leaf, extends the brand into higher-strength offerings. Philip Morris began commercializing ZYN ULTRA in June 2026 under recent FDA guidance, and the latest action builds on earlier FDA authorizations for ZYN's 3mg and 6mg variants. The decision adds to a series of FDA actions involving Philip Morris' smoke-free portfolio, including 20 ZYN nicotine pouch variants that received Modified Risk Tobacco Product authorizations and marketing authorizations for IQOS devices and General snus.

Philip Morris International reported strong second-quarter 2026 results with year-on-year growth in both revenue and net income, while its affiliate Swedish Match USA received FDA Marketing Granted Orders for 11 ZYN ULTRA moist oral nicotine pouch products, including all 9mg variants and one 11mg variant. The FDA's July 2026 decision to renew Modified Risk Tobacco Product orders for ZYN and certain IQOS devices further expands PMI's portfolio of FDA-sanctioned reduced-exposure offerings. The company's narrative projects $49.8 billion revenue and $15.5 billion earnings by 2029, requiring 5.4% yearly revenue growth and a $4.7 billion earnings increase from $10.8 billion. Some bearish analysts had assumed only about 4.8% annual revenue growth to roughly $48.9 billion by 2029, and their more pessimistic view on tougher regulation and slower smoke-free adoption may need updating after the latest ZYN ULTRA news.

The U.S. Food and Drug Administration granted Marketing Granted Orders for 11 ZYN ULTRA moist oral nicotine pouch products sold by Philip Morris International's affiliate Swedish Match USA. Philip Morris International shares trade at US$188.23, down 3.12% over the past 30 days but up 17.42% year to date and 132.88% over five years. The most widely followed fair value estimate of $203.80 implies the stock is 7.6% undervalued, supported by double-digit volume and margin growth in IQOS, ZYN, and VEEV platforms. Risks include structural declines in cigarette volumes and potential regulatory or tax changes.

Altria Group raised the lower end of its 2026 earnings outlook after reporting year-over-year adjusted earnings growth in its second quarter, even as results missed consensus estimates. Management cited pricing power, margin gains, and cigarette import/export benefits as key supports for future profit resilience despite declining U.S. cigarette volumes and uneven oral tobacco performance. The company also continued share repurchases, buying back about 22.4 million shares for roughly US$1,337.9 million under its latest plan, which supports per share earnings growth. Altria's narrative projects $20.9 billion revenue and $9.7 billion earnings by 2029, assuming flat yearly revenue and a roughly $1.7 billion earnings increase from $8.0 billion today.

The U.S. Food and Drug Administration has issued Marketing Granted Orders to Swedish Match USA, Inc., a Philip Morris International affiliate, authorizing the marketing of 11 ZYN ULTRA moist oral nicotine pouch products. The authorization covers all 9mg variants and one 11mg variant, while additional 11mg variants remain under scientific review. PMI U.S. CEO Stacey Kennedy said the decision builds on ZYN's position as America's leading smoke-free product brand. ZYN ULTRA, which has higher moisture content than flagship ZYN pouches, is free of tobacco leaf. The FDA previously authorized ZYN in multiple flavors and both 3mg and 6mg variants, making it the first nicotine pouch authorized for sale in the United States.

Altria Group is leaning on pricing, margins and shareholder returns to keep earnings resilient as U.S. cigarette demand declines, with second-quarter smokeable revenues net of excise taxes rising 2% and adjusted operating companies income increasing 2.4% to $3.02 billion. Smokeable price realization was 4.5%, led by Marlboro pricing, which helped counter lower shipment volume and supported Altria's narrowed 2026 adjusted earnings guidance of $5.61 to $5.72 per share. Domestic cigarette shipments fell 3.2% in the second quarter, while Altria's discount cigarette shipments jumped 67.3%, and industry discount retail share reached 33.8%, up 2.6 percentage points year over year. In smoke-free, on! PLUS expanded to about 120,000 stores and first-half on! shipments increased 5.1%, but Oral Tobacco Products revenues fell 5.3% and adjusted operating companies income declined 8%. Altria trades at 11.6 times forward 12-month earnings, below the Zacks sub-industry's 15.4 times and the S&P 500's 20.3 times, but above its five-year median of 9.7 times. The company paid about $3.6 billion in dividends and repurchased $335 million of shares in the first half of 2026, with a dividend yield of 6.33% and a payout ratio of 76%. MO currently carries a Zacks Rank #3 (Hold), with a VGM Score of C, Value Score of C, Growth Score of C and Momentum Score of D.

Philip Morris reported second-quarter 2026 results that beat the Zacks Consensus Estimate on both top and bottom lines. Adjusted earnings per share rose 15.2% year over year to $2.20, above the consensus of $2.04, while net revenues increased 10.4% on a reported basis to $11,192 million, beating the consensus of $10,556 million. Organic revenues grew 7.6%, driven by favorable pricing in international combustibles and strong international smoke-free volumes. The company lowered its full-year 2026 adjusted EPS guidance to a range of $8.26 to $8.41, down from the prior $8.36 to $8.51, and now expects reported EPS of $7.19 to $7.34. For the third quarter of 2026, Philip Morris projects adjusted EPS between $2.20 and $2.25.

Japan Tobacco raised its full-year earnings forecast in its second-quarter results for the fiscal year ending December 2026, lifting revenue to 3.885 trillion yen and operating profit to 1.008 trillion yen. In the first half, revenue rose 17.7% year on year and operating profit rose 29.0%, while total tobacco sales volume also held firm with a 1.0% increase. The dividend per share was raised by 30 yen from the previous forecast of 242 yen to 272 yen, putting the dividend yield at 3.96%. The share price closed at 6,870 yen on August 20, 2026, up 21.8% since the start of the year and up 43.5% over one year, trading near record highs. Meanwhile, risks have been flagged from tighter regulation, including the passage of a UK bill banning tobacco sales to people born after 2009, and from potential impairment of goodwill, which accounts for 34.4% of total assets.

AIR Global PLC reported first half revenue increased 3.7% to $206.9 million, driven by flavored shisha molasses revenue growth of 3.4% to $204.7 million, while gross profit rose 2.4% to $116.8 million. Adjusted EBITDA was $71.7 million, flat year-over-year, related to lower shipment volumes partially offset by U.S. tariff refunds. The company maintained its 2026 fiscal guidance, expecting USD revenue growth between 4% and 6%, low- to mid-single-digit adjusted EBITDA growth, and stable shipment volumes versus the prior year. CEO Stuart Brazier noted the performance reflects resilience despite challenges following the closure of the Strait of Hormuz, a route through which approximately 70% of historical shipment volumes have been transported.

Japan Tobacco Inc. announced on July 30 its consolidated results for the second quarter of the fiscal year ending December 2026. Revenue rose 17.7 percent year on year to 1.986 trillion yen, and net profit increased 35.0 percent to 431.829 billion yen, marking a sharp rise in both revenue and profit. In the tobacco business, revenue and profit grew in all clusters: Asia, Western Europe, and EMA. In particular, revenue in the EMA cluster rose 25.2 percent, driving overall performance. In response, the company revised upward both its full-year earnings forecast and annual dividend. The next day, July 31, its share price was bought up to 7,135 yen, up 470 yen from the previous day, and during trading hours it hit a record high of 7,218 yen since listing. On the Tokyo market on August 13, the stock rose for a third straight day, with JT shares closing at 7,068 yen, up 42 yen from the previous day, and trading continues to hover at high levels.

Altria resumed shipments of 12-milligram on! PLUS nicotine pouches in three states during the second quarter of 2026, with national expansion planned for the third quarter. The on! PLUS rollout reached about 120,000 stores, covering roughly 90% of nicotine product volume, and helped drive on! retail share to 8.6%, up 0.8 percentage points sequentially. The nicotine pouch category grew 8.1 share points and represented nearly 60% of the total oral tobacco category. Additional flavors across 6-milligram, 9-milligram and 12-milligram strengths, starting with Blueberry Mint and Mango Pineapple, are planned for the fourth quarter.

RYTHM, Inc. reported second-quarter 2026 earnings of 9 cents per share, reversing a loss of $3.74 per share a year earlier. Revenue surged to $23 million from $2 million, while net income reached $1.2 million compared with a net loss of $7.4 million. Adjusted EBITDA was $6.4 million versus an adjusted EBITDA loss of $5.5 million. THC beverage depletions hit a record of approximately 25,000 cases in June across 18 states, up from roughly 7,000 cases a year ago. Chairman and Interim CEO Ben Kovler noted that revenues grew 73% sequentially, exceeding prior guidance of 65% growth, driven by momentum in THC beverages and the first full quarter under an amended licensing agreement with Green Thumb Industries.

Philip Morris International opened a $1.2 billion manufacturing campus in Aurora, Colorado, dedicated to producing ZYN nicotine pouches, doubling the project's original $600 million estimate. The 780,000-square-foot facility, built on 148 acres, combines production, packaging, warehousing, and distribution, and is expected to employ about 500 people once fully staffed. The opening follows a June 30 FDA authorization making ZYN the first nicotine pouch allowed to market itself as lower risk than cigarettes. Meanwhile, rival British American Tobacco reported a 65.9% increase in Modern Oral revenue in the first half of 2026, driven by Velo Plus and Grizzly Modern Oral, and plans a national US rollout of its higher-strength Velo Max in the second half of the year.

KT&G reported second-quarter operating income of 414.452 billion Korean won, an 18.5% increase from 349.882 billion won a year earlier. Net income attributable to shareholders of the parent company surged 154.2% to 364.271 billion won, while sales rose 9.9% to 1.702 trillion won. For the first half, cumulative operating income climbed 22.6% to 778.988 billion won and cumulative sales grew 12.0% to 3.405 trillion won. Shares were trading at 182,700 won on the Korea Exchange, up 3.81%.

RYTHM surged 23% Tuesday after posting strong second-quarter results and amid a potential federal reprieve on the hemp-derived THC ban set for November. The company reported $1.2 million in net income on $23 million in revenue, up 73% from the prior quarter. Lawmakers added language to the Senate's upcoming continuing resolution that would delay enforcement of the ban by one month, buying time to negotiate comprehensive regulation. The ban, which takes effect November 12, threatens RYTHM's brand portfolio and the licensing structure underpinning the company, as it would trigger Green Thumb Industries' right to repurchase the brand IP.

AIR Global PLC will hold an Extraordinary General Meeting of shareholders on August 24, 2026, in London to vote on five proposals, including the previously announced repurchase of 5,000,000 ordinary shares from Harraden Circle Investors, LP and affiliated funds. The repurchase and the terms of a related prepaid share forward agreement require shareholder approval under Jersey law. Shareholders will also consider two standing authorizations allowing the Board to repurchase up to 20% of outstanding ordinary shares annually through 2031, either off-market or on the open market, though no other buybacks are currently planned. A fifth proposal seeks to amend the Articles of Association to permit future meeting notices via website posting only. The Board unanimously recommends a vote in favor of all proposals, with full details available in the shareholder circular dated August 5, 2026.

RYTHM, Inc. announced second quarter 2026 revenue from continuing operations of $23.0 million, a 73% increase from $13.3 million in the prior quarter. Net income reached $1.2 million, while adjusted EBITDA rose to $6.4 million from approximately breakeven in the previous quarter. Cash increased to $41.9 million, driven by cash flow from operations of $8.7 million. The company highlighted record THC beverage depletions of approximately 25,000 cases in June across 18 states, up from about 7,000 in June 2025, and noted that fixed annual cash licensing fees of $70 million from Green Thumb Industries Inc. took effect on April 1, 2026. Due to uncertainty from forthcoming federal law changes affecting hemp-derived THC products scheduled for November 12, 2026, RYTHM is not providing an outlook for the third quarter.

Altria Group's smokeable products segment saw domestic cigarette shipment volume fall 3.2% year over year in the second quarter of 2026, but net revenues net of excise taxes rose 2% as higher net pricing offset the decline. Excluding trade inventory movements, the volume decline was estimated at 4.5%, compared with an estimated 5% decline for the overall U.S. cigarette industry. Smokeable price realization was 4.5%, driven by strong net pricing for Marlboro, though partly offset by a greater mix of the lower-priced Basic brand as some adult smokers traded down. Adjusted operating companies income increased 2.4% and adjusted OCI margin expanded 30 basis points to 64.8%, with higher pricing and refunds of taxes and duties on imported cigarettes more than offsetting lower shipment volumes, increased promotional investments, a greater mix of discount products, and higher costs. The quarter demonstrated that pricing continued to help offset the financial impact of lower cigarette shipment volumes, even as changing consumer purchasing patterns and a growing mix of discount products remain challenges.

Altria Group reported strong first-half results with adjusted diluted earnings per share growth of 4.9% and raised the low end of its full-year guidance. The company returned nearly $3.9 billion to shareholders through dividends and share repurchases, while its On+ nicotine pouch product expanded to 120,000 stores nationwide, driving sequential retail share gains of 0.8 points. Smokable products segment adjusted operating companies income grew 2.4% in the second quarter and 4.2% in the first half, with margins expanding to 64.8% and 64.9% respectively. However, the oral tobacco products segment saw adjusted operating companies income decline 8% in the second quarter due to strategic investments behind On+ and difficult prior-year comparisons, and Marlboro's overall retail share declined 1.5 share points year-over-year amid trade-down dynamics. CEO Sal Mancuso noted that the national expansion of the 12-milligram On Plus and flavor extensions will require investment, but the company feels good about narrowing guidance and looks forward to the second half.

Altria Group raised the lower end of its full-year 2026 adjusted diluted earnings per share guidance to $5.61, narrowing the range to $5.61 to $5.72. The company reported second-quarter adjusted diluted EPS of $1.48, up 2.8%, and returned nearly $3.9 billion to shareholders in the first half through dividends and share repurchases. Smokeable products adjusted operating companies income grew 2.4% to $3 billion, while oral tobacco products adjusted OCI fell 8% due to investments behind on! PLUS. CEO Salvatore Mancuso noted that on! PLUS expanded to 120,000 stores nationwide and plans a 12-milligram national expansion in the third quarter, with flavor launches starting in the fourth quarter. Management cautioned that the consumer remains under pressure and that second-half execution will require investment behind on! PLUS and flavor activities.

British American Tobacco reported a 2.9% rise in group revenue on a constant currency basis for the first half of 2026, with adjusted diluted earnings per share up 7.9%, and upgraded its full-year EPS growth guidance to the middle of the 5% to 8% range. New category revenue accelerated 18%, driven by a 66% jump in Modern Oral and a 5.3% increase in Vapor, while heated product revenue declined nearly 12%. The new category contribution rose 55% at constant rates to 269 million pounds. Combustible volumes fell 4.7% but revenue grew 2.1% on a robust price mix of 6.8%, and the group operating margin expanded 30 basis points to 43.7%. In the US, total revenue climbed 8.5% and adjusted operating profit rose 10.1%, with new category revenue up nearly 60% and combustible revenue up 5%. The company expects full-year net finance costs of around 1.65 billion pounds, an underlying tax rate between 24% and 25%, and plans a 1.3 billion pound share buyback in 2026.

According to disclosures made on July 30, Nippon Steel Solutions raised its first-half net profit forecast by 6 percent, adding to its record-high profit outlook, and also increased its full-year forecast. Japan Tobacco raised its current-term net profit forecast by 13 percent, adding to its record-high profit outlook, and increased its dividend by 30 yen. Coca-Cola Bottlers Japan Holdings swung to a first-half net profit and announced a share buyback of up to 14 million shares, representing 8.6 percent of outstanding shares excluding treasury stock, with a maximum value of 400 billion yen. Elsewhere, Sekisui Jushi raised its current-term net profit forecast by 23 percent, increased its dividend by 18 yen, and expanded its share buyback amount from 2.7 billion yen to 3 billion yen. Mizuho Financial Group raised its current-term net profit forecast by 8 percent, adding to its record-high profit outlook, and expanded its share buyback program from the current 25 million shares and 100 billion yen to 35 million shares and 200 billion yen. On the other hand, negative factors also emerged, such as Nihon M&A Center Holdings reporting an 11 percent decline in ordinary profit for the April-June quarter, Kagome lowering its current-term net profit forecast by 22 percent, and Osaka Steel revising its first-half ordinary profit forecast to a loss and maintaining a previously undecided first-half dividend at zero.