Altria Reports Strong Demand For Nicotine Pouches

Shipment volume grew 26.5% in second-quarter 2025

By Diane Adam on Jul. 31, 2025

Tobacco company Altria gave an update on nicotine pouches and its tobacco business overall during a July 30 call on its second-quarter and first-half 2025 financial results.

“In the second quarter, we continued the pursuit of our vision while maintaining our strong and profitable core businesses,” said Billy Gifford, Altria’s CEO. “In oral tobacco, On delivered strong performance and was the substantial driver of the segment’s growth in the quarter.” Net revenues for the Richmond, Virginia-based company decreased 1.7% to $6.1 billion for the second quarter and decreased 3.6% to $11.4 billion for the first half of the year, primarily driven by lower net revenues in the smokable products segment, the company said.

In the nicotine pouch category, Altria's On, made by the company's subsidiary Helix Innovations LLC grew in shipment volume by 26.5% to 52.1 million cans versus the year-ago period. 

“Helix will continue to focus on driving trial, building long-term equity and increasing profitability,” Gifford said on the earnings call, according to an AlphaSense transcript. “In fact, On's improving financial performance drove the majority of the oral segment's substantial profit growth for the quarter.”

Turning to illicit e-vapor products, Gifford said there is progress to combat the issue, but more must be done.

“While we're seeing some progress, more consistent action needs to be taken to deliver sustainable long-term results,” Gifford said. “We continue to advocate at the federal and state levels for more coordinated and decisive actions against illicit actors. 

He told investors that illicit e-vapor enforcement is only one area where the regulatory system is failing and that the Food and Drug Administration must accelerate product authorizations across all tobacco categories.

Altria reported domestic cigarette shipment volume decreased 10.2% for second-quarter 2025, primarily driven by the industry’s decline rate, while cigar shipment volume increased 3.7%.

“While our smokable business is focused on Marlboro in the premium segment, adult smokers continue to face macroeconomic pressures,” CFO and executive vice president Salvatore Mancuso said on the earnings call. “The compounding effects of inflation exceeding overall wage growth, especially among low-income consumers contributed to the discount segment growing 1.9 share points year-over-year and 0.4 sequentially.”