July 30 (Reuters) - Tobacco giant Altria MO.N beat Wall Street estimates for second-quarter revenue and profit on Wednesday, helped by strong demand for its on! nicotine pouches.
The Richmond, Virginia-based company has been banking on its portfolio of smoking alternatives, such as nicotine pouches, to offset the impact from lost sales as more consumers move away from traditional cigarettes and chewing tobacco.
While sales of Altria's vape brand, NJOY, were halted earlier this year amid a patent dispute, higher growth at its on! segment helped make up for the collapse in sales.
The company had said in April NJOY will not return to the market this year, booking a hefty impairment related to its vape unit.
Widespread sales of unregulated disposable vapes, mostly from China, have eaten into vape and traditional tobacco businesses in the U.S. However, Altria said it anticipates a limited benefit from higher seizures of such devices.
The company's quarterly revenue including excise taxes rose 0.2% to $5.29 billion from a year ago, compared with analysts' average estimate of a 1.8% decline to $5.18 billion, according to data compiled by LSEG
Its adjusted second-quarter profit of $1.44 per share beat estimates of $1.39.
Shipment volume for on! nicotine pouches rose 26.5%, compared with a 13.7% increase a year ago.
Rival Philip Morris International's PM.N shares suffered last week after shipments of its ZYN nicotine pouches - by far the No. 1 pouch brand in the U.S. - came in below expectations.
Shipment volume for Altria's smokeable tobacco business fell 10.2% during the second quarter, compared with a 13% decline a year ago.
The company recorded a non-cash, pre-tax charge of $354 million during the quarter, related to an impairment of trademark for its Skoal smokeless tobacco. It did not give a reason for the impairment.
Altria expects annual adjusted earnings of $5.35 to $5.45 per share, compared with previous expectations of $5.30 to $5.45.
(Reporting by Neil J Kanatt in Bengaluru and Emma Rumney in London; Editing by Shreya Biswas)
((Neil.JKanatt@thomsonreuters.com;))