Marlboro maker Altria takes $2.6 billion third-quarter hit on Juul financial commitment

© Reuters/Elijah Nouvelage
FILE Photograph: Juul brand vape cartridges are pictured for sale at a shop in Atlanta


(Reuters) – Altria Group Inc stated on Friday it took a $2.6 billion demand on its financial investment in Juul Labs Inc in the 3rd quarter, generally because of to decreased earnings projection for the e-cigarette maker.

Juul’s valuation has nosedived more than the previous two decades because of to elevated regulatory scrutiny following a rise in teenage vaping and a ban on the sale of common flavors.

The business was valued at $38 billion in December 2018, when the Marlboro maker took a 35% stake, but it has taken numerous expenses on its investment decision considering the fact that. The worth of Altria’s expense in Juul was $1.6 billion as of Sept. 30.

“Altria executed a valuation examination on its investment decision in Juul, which considered the two Juul’s worldwide prospective clients and current U.S. e-vapor classification dynamics,” the business stated.

Reuters had on Thursday noted citing an inner memo that the e-cigarette maker, which lately determined to stop sure markets, had lower its valuation to about $10 billion from $12 billion at the stop of past 12 months.

(Reporting by Praveen Paramasivam in Bengaluru Editing by Arun Koyyur)