Jan 30 (Reuters) - Marlboro maker Altria ( MO ) said on

Thursday its annual adjusted profit could be lower than

estimated, citing rising competition from rival vapes in the

market and persistently weaker demand for cigarettes.

Shares of the company, which rose nearly 30% in 2024, were

down about 2% in premarket trading.

Altria ( MO ) and its peers have been grappling with a long-term

decline in tobacco sales due to consumers switching to cheaper

brands or alternatives such as vapes and stricter-than-ever

regulations.

The Richmond, Virginia-based company's domestic cigarette

shipment volume decreased by 8.8% in the fourth quarter ended

Dec. 31, compared with a 7.6% decline a year ago.

U.S. regulators in January proposed to cap nicotine levels

in cigarettes - a move that could eliminate most cigarettes in

the market - though it remains unclear if it will be

implemented.

Higher investments to diversify its portfolio towards

tobacco alternatives have further led to increased promotional

expenses.

Meanwhile, President Donald Trump's administration recently

withdrew plans for a ban on menthol cigarettes, which could have

driven heavy losses for the industry.

A U.S. trade tribunal ordered a ban on imports of vaping

devices and cartridges from Altria's ( MO ) NJOY following a patent

dispute with Juul Labs. NJOY products were previously made in

countries including China and Malaysia, though none come from

China today, Altria ( MO ) said.

The ban will take effect by March 31, or sooner if approved

by the Trade Representative, Altria ( MO ) said.

The company expects annual adjusted earnings in the range of

$5.22 to $5.37 per share, the midpoint of which is below

analysts' average estimate of $5.35, according to data compiled

by LSEG.

Altria's ( MO ) quarterly revenue, net of excise taxes, came in at

$5.15 billion, surpassing estimates of $5.05 billion.

Its adjusted profit of $1.29 per share for the quarter was

in line with estimates.

Altria ( MO ) also announced a $1 billion share repurchase program.