Oct 31 (Reuters) - Altria Group ( MO ) beat market

expectations for third-quarter revenue and profit on Thursday,

as robust demand for its nicotine pouches and e-cigarettes

helped soften the hit to its cigarettes category.

Altria's ( MO ) NJOY vapes and on! nicotine pouches have seen

steady demand in the United States, with its menthol flavored

NJOY vape products receiving authorization from the U.S. Food

and Drug Administration for sale.

Big tobacco's bet on alternatives to traditional cigarettes

is being watched closely by investors as companies such as

Altria ( MO ) and its peers deal with weak demand for cigarettes and

face stiff competition from local brands for vapes.

The company said in July it had sent data to the FDA on

growth in illegal nicotine pouches, which it said depicted early

stages of a massive black market for vapes.

Domestic cigarette shipment volume in the smokeable products

segment fell 8.6% in the third quarter, while NJOY devices

reported shipment volume increased over 100% year-over-year to

1.1 million units.

Shipment volume for on! nicotine pouches rose 46% in the

quarter, while demand continued to weaken for the company's

chewing tobacco products such as Copenhagen.

Shares of the Marlboro maker were up about 1% in premarket

trade. They have risen about 25% so far this year.

Altria ( MO ) also unveiled a long-term plan to increase

operational efficiency through generative artificial

intelligence and automation.

The company added that initial phases of the plan were

expected to deliver at least $600 million in cost savings over

the next five years.

Quarterly revenue net of excise taxes rose 1.3% to $5.34

billion. Analysts had expected $5.33 billion, according to data

compiled by LSEG.

Altria's ( MO ) third-quarter adjusted earnings per share of $1.38

topped market expectations of $1.35.

The company maintained its annual profit forecast of between

$5.07 and $5.15 per share.

Last week, peer Philip Morris ( PM ) lifted its annual

profit target betting on strength in demand for its flagship

IQOS heated tobacco device as well as ZYN nicotine pouches.