(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.