Altria's cannabis investment backfires in the stock market
Apr 25, 2019
Altria, the maker of cigarette brand Marlboro, posted quarterly results that showed earnings dropped 41% during the quarter. The main issue for Altria was that its an investment in Canadian cannabis company Cronos ate into its profits for the quarter and led to the company being downgraded by two rating companies. Altria reported net income of 60 cents per share, down from $1 per share from a year ago, and the company had to issue new debt to finance its $1.8 billion investment in Cronos and a $12.8 billion stake in e-cigarette manufacturer Juul. Altria is counting on Juul and Cronos to stay profitable as the core cigarette business dropped 14% from the same period last year.