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Category: Business & Finance

  • PMI Ukraine Running at Full Capacity

    PMI Ukraine Running at Full Capacity

    Philip Morris Ukraine is considering exporting cigarettes manufactured at its newly built factory in the Lviv region, company CEO Maksym Barabash said during a roundtable discussion on Ukraine’s economic recovery. Ukraine Business News (UBN) said the PMI factory in Kharkiv, which closed at the outbreak of war with Russia, produced 20 billion cigarettes annually, 50% of which were exported, including to Japan.

    By launching a new $30 million factory in the Lviv region, the company sees the potential to resume exports to geographically close countries. The new factory in the Lviv region opened in May 2024 and features five production lines that this year reached their planned capacity of 10 billion cigarettes per year. This factory has become an important part of the company’s supply chain in Ukraine.

    Philip Morris Ukraine has been active in the Ukrainian market since 1994 and has invested over $750 million in the Ukrainian economy during this time, according to UBN.

  • TANN Group Sale Completed

    TANN Group Sale Completed

    Mayr-Melnhof Karton AG (MM), a consumer packaging company, closed the sale of 100% of the shares in TANN Group to Evergreen Hill Enterprise, Pte. Ltd., part of an Indonesian-based privately held group of diversified companies. The $410 million deal was announced in December 2024.

    TANN Group prints on and finishes externally sourced fine paper to produce tipping paper. As the business is unrelated to cartonboard and consumer packaging, MM decided to sell it.

    “The sale offers MM the opportunity to further strengthen and expand the position in its core consumer packaging business,” said Peter Oswald, CEO of MM when the deal was announced in December.  We are delighted that TANN Group gets a new strategic owner with Evergreen Hill Enterprise, Pte. Ltd., which is committed to investing in its future. Above all, we would like to thank the entire staff for their great work over the past years with MM.”

    TANN has 730 employees globally at sites in Austria, China, the Philippines, Turkey, Canada, and Germany, generating $251 million in sales annually.

  • CAA Reports U.S. Cigar Imports Down 8.7%

    CAA Reports U.S. Cigar Imports Down 8.7%

    The Cigar Association of America (CAA) reported the U.S. imported 48.4 million premium cigars in the first two months of 2025, an 8.7% decrease from the previous year. The decline was not due to tariffs, which were announced in April, but are believed to be part of the ever-adjusting post-pandemic market.

    The three major cigar exporters all saw declines, with the Dominican Republic down 4.1%, Nicaragua (which accounts for more than half of the market) down 9.3%, and Honduras down 19.3%. Those three producers account for 99% of handmade, premium cigar shipments to the United States.

    “January’s imports are typically anemic compared to the other 11 months of the year, oftentimes less than half of some of the peak import numbers that occur in the second half of the calendar,” Charlie Minato wrote for Halfwheel. “While imports have cooled off from their peak in 2020-2022, the U.S. imported 430 million premium cigars in 2024, up more than 90 million units compared to pre-pandemic levels.”

    According to the CAA, the market increased from 338 million handmade cigars in 2019 to 465 million in 2022.

  • BAT Issues First-Half Update

    BAT Issues First-Half Update

    BAT published its 2025 First Half Pre-Close Trading Update yesterday (June 3), followed by a short conference call and Q&A session hosted by Tadeu Marroco, Chief Executive, Soraya Benchikh, Chief Financial Officer, and Victoria Buxton, Group Head of Investor Relations.

    “Our revenue performance in H1 is slightly ahead of our previous guidance, and we now expect to deliver FY revenue growth of 1-2%, supporting 1.5 to 2.5% adjusted profit from operations growth,” Marroco said. “2025 is a deployment year and, as previously highlighted, we expect our performance to be H2 weighted, mainly driven by the roll-out of New Category innovations in key markets from the middle of the year.”

    Improved performance in the modern oral category and U.S. combustibles led the company to raise 2025 revenue growth guidance to 1%-2% from just 1% prior, analysts said. BAT’s shares went up 2% after the reporting.

    Click here for the full update and a transcript of Marroco’s comments.

  • PMI Execs Talk Financials

    PMI Execs Talk Financials

    Today (June 3), Philip Morris International presented at the 2025 dbAccess Global Consumer Conference, showcasing its strategic focus on smoke-free products amid a backdrop of both opportunities and challenges. The company reported strong growth in its smoke-free portfolio, while also managing a resilient combustible business through strategic price adjustments and cost management.

    PMI reported organic revenue growth between 6% and 8% and organic operating income growth of 10.5% to 12.5%. The company said it remains on course to have two-thirds of its revenue come from smoke-free products by 2030.

    PMI said its smoke-free product volume increased by more than 14%, and revenue from smoke-free products grew by over 20% organically. This category was led by its Zyn nicotine pouches, which saw over 50% growth in the U.S. during Q1 2025, and has plans for further expansion in Europe and other markets.

    IQOS experienced nearly 10% growth in Japan and over 7% in Europe despite regulatory challenges, with Veev holding the top position in five EU markets, focusing on profitable growth.

    Emmanuel Babeau, CFO of PMI, said the company plans to expand IQOS in the U.S. and enter new markets such as Turkey, Brazil, and India, and expects to reach a net debt to EBITDA ratio of 2x by the end of 2026.

  • El Septimo Cigars Reports Record Growth

    El Septimo Cigars Reports Record Growth

    El Septimo Cigars reported a 300% increase in revenue in Q1 2025 compared to Q2 2024, following the successful signing of distribution partnerships in more than 50 countries worldwide.

    The company did not provide revenue numbers, but said its growth follows El Septimo’s strategic expansion campaign across primarily North America, while including new market entries across Europe, Asia, the Middle East, and Latin America. “This global push not only broadened the company’s international footprint but also solidified its position in the ultra-premium cigar market,” the company said in a press release.

    “This quarter’s results are a direct reflection of our commitment to excellence, innovation, and global brand building,” said Zaya S. Younan, CEO of El Septimo Geneva. “Our expansion into over 50 new countries represents more than just numbers—it’s a testament to the global appetite for luxury experiences. We are not just selling cigars; we are defining a lifestyle.”

  • JTI Philippines Sees 23% Growth in Nicotine Pouches

    JTI Philippines Sees 23% Growth in Nicotine Pouches

    According to JTI, Nordic Spirit, the first nicotine pouch brand in the Philippines, is enjoying 23% monthly growth across the country. At a recent briefing in JTI’s office in Stockholm, Sweden, that included visiting journalists from the Philippines, Karin Tan, JTI’s director of reduced-risk products, said the product’s growth has been robust since it was introduced in May 2023.

    “There is actually traction in the market,” Tan said, citing data from major convenience stores such as 7-Eleven and Uncle John’s. “It is all about giving consumers pleasurable choices.”

    In a recent JTI survey of 7,000 consumers, 80% reported a positive experience using nicotine pouches. Consumers in the Philippines cited convenience, taste, and satisfaction in the product, and noted it was convenient to use in a country that contains so many no-smoking areas.

    Against this backdrop, JTI’s Vårgårda facility, located in Västra Götaland County on Sweden’s western coast, is gearing up for increased demand for nicotine pouches. The facility will soon produce Nordic Spirit for the UK, Canada, France, and the Philippines, according to factory lead Serkan Karasulu. 

  • BAT Sells $1.5B Stake in ITC

    BAT Sells $1.5B Stake in ITC

    Yesterday (May 28), British American Tobacco said it sold a $1.5 billion stake in Indian consumer goods company ITC at 413 Indian rupees per share. The company sold 313 million shares in ITC, representing 2.5% of ITC, according to the term sheet. This final amount exceeded its initial plan to sell up to 290 million shares in the deal, valued at approximately $1.4 billion.

    According to Reuters, the final sale price represented a 4.8% discount to ITC’s closing price of 433.90 rupees ($5.21) on Tuesday. Shares of ITC dropped nearly 3% to 421.70 rupees ($5.06) on Wednesday. BAT will remain ITC’s largest shareholder after the deal, according to LSEG data. Last year, BAT sold 436.9 million shares, or roughly 3.5% of ITC’s outstanding shares, for about $2 billion in what was India’s third-largest block deal.

    BAT said it would increase its 2025 $1.5 billion share buyback program by £200 million as a result of the deal, which is not expected to have any other impact on its annual outlook.

  • JT Launches Ploom AURA in Japan

    JT Launches Ploom AURA in Japan

    Japan Tobacco Inc. launched its next-generation heated-tobacco device today (May 27) in Japan, the Ploom AURA. The device will initially be available in its Ploom stores and CLUB JT online shop. In parallel, JT Group will roll out EVO, its exclusive and premium heated tobacco sticks, “to complement Ploom AURA and provide adult consumers with the latest and most technologically advanced propositions in the heated tobacco segment,” according to the company. A nationwide launch of Ploom AURA and EVO will start on July 1 in convenience stores and tobacco retail shops, and will roll out globally in the near future.

    “In the reduced-risk products [RRP] category, we are focusing on providing adult consumers with quality products, rooted in technology, consumer insights, and experience, and I truly believe Ploom AURA embraces all these aspects and more,” said Takehiko Tsutsui, executive vice president of RRPs.

    JT Group said it will continue to prioritize investments in the heated tobacco sticks segment through 2027, and will be investing 650 billion yen ($4.5 billion) in RRP, much for the Ploom AURA and its launch.

    “The RRP category is reshaping the global tobacco landscape, and I am confident that Ploom AURA and EVO will play key roles in supporting JT Group’s ambition of reaching mid-teens share in the HTS segment by 2028,” said Tsutsui.

  • BAT Responds to ITC Speculation

    BAT Responds to ITC Speculation

    British American Tobacco responded to the recent speculation relating to a potential disposal of part of its shareholding in ITC Limited. “BAT confirms that it is evaluating a possible disposal of a small part of BAT’s shareholding in ITC by means of an on-market trade,” the company said in a press release. “There can be no certainty that any such transaction will proceed, nor can there be any certainty as to the terms of any potential transaction. A further announcement will be made if and when appropriate.”

    The announcement was made on behalf of British American Tobacco by Caroline Ferland, Company Secretary, who likewise said the announcement contained inside information in relation to British American Tobacco for the purposes of Article 7 of the Market Abuse Regulation.

    “The securities referred to herein will not be, and have not been, registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act,” the company said.

    BAT is currently ITC’s top investor, with a 20.3% stake according to LSEG data. Last year BAT sold 436.9 million shares, or roughly 3.5% of ITC’s outstanding shares, for about $2 billion in what was India’s third-largest block deal ever.