(Corrects paragraph 3 to replace net revenue of $5.58 billion with revenue net of excise taxes of $4.72 billion)
(Reuters) -Altria Group topped quarterly sales expectations on Thursday, driven by higher pricing and rising demand for alternatives to conventional tobacco products.
Like other tobacco giants, Altria has been revamping its portfolio of products to keep up with consumers switching from traditional tobacco products to vapes or other alternatives and as inflation-hit smokers switched to cheaper brands.
The company's revenue net of excise taxes came in at $4.72 billion in the first quarter, topping analyst expectations of $4.71 billion, while profit on an adjusted basis came in line with expectations.
Last year, Altria launched a lower-priced version of its flagship Marlboro brand and finalized its acquisition of e-cigarette startup NJOY Holdings, expanding its portfolio to include pod-based vapes.
Shipment volumes of Altria's nicotine pouch, On! increased by 32.1% compared to 25.2% in the previous quarter.
The results echo peer Philip Morris International, which reported upbeat quarterly results, helped by robust demand for its heated tobacco product and Zyn nicotine pouches.
Earlier this year, Altria cut its stake in top beer maker Anheuser-Busch InBev.
Shares of Altria were up marginally in premarket trade.
(Reporting by Annett Mary Manoj and Emma Rumney; Editing by Tasim Zahid)
