ONE TOBACCO COMPANY has reported that sales of its nicotine pouches soared in Ireland last year, increasing almost five fold to 29 million pouches.
The Irish arm of global tobacco giant, British American Tobacco plc, PJ Carroll & Co Ltd is the market leader here for nicotine pouches under its VELO brand and its directors state that sales of VELO pouches increased from 6 million in 2023 to 29 million last year.
The directors for PJ Carroll & Co Ltd confirm that sales of VELO “delivered exceptional growth in 2024″ where revenues from VELO increased by 442pc on 2023.
The firm only launched its VELO brand in June 2023 and it contributed 3pc of overall revenues that year.
The directors state that the VELO brand achieved a 45.9pc market share in 2024.
PJ Carroll and Co Ltd’s overall net revenues increased by 11pc from €30.53m to €33.75m.
The directors state that the revenues performance “was driven by strong growth in VELO and continued Vapour momentum offsetting the decline in combustible volumes”.
The directors state that although combustible volumes declined by 11pc on 2023 to 200m sticks, “the business delivered strong value extraction through manufacturers price increase in April 2024″.
Combustibles revenue totalled 71pc of total business in 2024 compared to 75pc of revenues in 2023. Revenues from the sale of ‘vapes’ increased by 2pc last year.
The firm achieved gross revenues of €179.43m in 2024 that included €145.67m in excise duties and other taxes.
Pre-tax profits at PJ Carroll & Company Ltd last year declined by 8pc to €5.69m.
The sharp increase in sales came as the Minister for Health sought to outlaw the sale of nicotine products, including pouches, to minors.
The new law is to also prohibit the advertising of these products in all retail outlets and their display in mixed retail outlets.
Nicotine pouches are typically white and contain a powder made of the highly addictive chemical nicotine, flavourings and other ingredients. They are typically placed between a person’s lip and gum.
This year’s Health Ireland survey found that 1pc of the population use nicotine pouches, with this rising to 3pc in the 15 to 24-year-old cohort. Men are more likely than women to use them, the survey said.
Belgium, France and the Netherlands have all introduced bans on nicotine pouches, while other EU countries are introducing or considering tighter regulation around the products.
Numbers employed at PJ Carroll & Co Ltd totalled 22 and staff costs totalled €1.3m. Directors’ remuneration totalled €204,000.
A note states that the company is undergoing an audit of its tax affairs in the Republic of Ireland.
The note states that the company “has paid €1 .2m to Irish Revenue subsequent to year end and which is provided for in these financial statements in relation to the tax audit”.
The directors state that illicit and duty-free purchasing was a combined 37pc of the market in 2024, according to Revenue Commissioner’s own figures.
Accumulated profits stood at €40.8m.
