Altria Group, Inc. (NYSE: MO) today reports our 2024
third-quarter and nine-months business results and reaffirms our
guidance for 2024 full-year adjusted diluted earnings per share
(EPS).
“Altria delivered outstanding results in the third quarter,”
said Billy Gifford, Altria’s Chief Executive Officer. “The
smokeable products segment delivered solid operating companies
income growth behind the resilience of Marlboro, and in the oral
tobacco products segment, our MST brands continued to drive
profitability while on! maintained momentum in the marketplace. We
also continued to reward shareholders through a growing dividend
and share repurchases while making investments in pursuit of our
Vision.”
“We also announce today a new Optimize & Accelerate
initiative designed to modernize our processes, which we believe
will accelerate progress toward our Vision, and we reaffirm our
guidance to deliver 2024 full-year adjusted diluted EPS in a range
of $5.07 to $5.15. This range represents an adjusted diluted EPS
growth rate of 2.5% to 4% from a base of $4.95 in 2023.”
Altria Headline Financials1
($ in millions, except per share data)
Q3 2024
Change vs. Q3
2023
Q3 YTD 2024
Change vs. Q3 YTD
2023
Net revenues
$6,259
(0.4)%
$18,044
(2.5)%
Revenues net of excise taxes
$5,344
1.3%
$15,338
(0.9)%
Reported tax rate
24.2%
(1.3) pp
24.4%
(1.5) pp
Adjusted tax rate
23.9%
(0.5) pp
24.3%
(0.4) pp
Reported diluted EPS2
$1.34
9.8%
$4.75
39.7%
Adjusted diluted EPS2
$1.38
7.8%
$3.84
1.6%
1 “Adjusted” financial measures presented in this release
exclude the impact of special items. See “Basis of Presentation”
for more information and see the schedules to this press release
for reconciliations to corresponding GAAP measures. 2 “EPS”
represents diluted earnings per share.
As previously announced, a conference call with the investment
community and news media will be webcast on October 31, 2024 at
9:00 a.m. Eastern Time. Access to the webcast is available at
www.altria.com/webcasts.
NJOY
Business Results
Third Quarter:
- NJOY consumables reported shipment volume increased 15.6%
versus the prior year to 10.4 million units.
- NJOY devices reported shipment volume increased +100% versus
the prior year to 1.1 million units.
- NJOY retail share of consumables in the U.S. multi-outlet and
convenience channel increased 2.8 share points versus the prior
year to 6.2%.
First Nine Months:
- NJOY consumables reported shipment volume was 33.8 million
units.
- NJOY devices reported shipment volume was 3.9 million
units.
- NJOY retail share of consumables in the U.S. multi-outlet and
convenience channel was 5.3%.
Optimize & Accelerate Initiative
We intend to commence a multi-phase Optimize & Accelerate
initiative (Initiative) designed to modernize our ways of working
as we accelerate our progress toward our Vision and 2028 Enterprise
Goals. Through the Initiative, we plan to increase our
organization’s speed, efficiency and effectiveness by centralizing
work, streamlining and standardizing processes, further using
generative artificial intelligence and automation, and outsourcing
certain transactional tasks. We expect the design and detailed
plans for all phases of the Initiative to be substantially complete
in 12 to 18 months.
As part of the Initiative, we intend to establish an Accelerated
Business Solutions organization within Altria Client Services LLC.
This organization will be responsible for driving efficiency and
process improvement across our companies in partnership with
external service providers.
We expect the initial phases of the Initiative will deliver at
least $600 million in cumulative cost savings over the next five
years, which we plan to reinvest in our businesses in support of
our Vision and 2028 Enterprise Goals. The cumulative cost savings
exclude our estimated total pre-tax charges for these initial
phases of approximately $100 million to $125 million (excluding any
non-cash impact that may result from pension settlement and
curtailment accounting), which we intend to treat as special items
and exclude from our adjusted diluted EPS. Substantially all of
these charges will result in cash expenditures and will consist of
employee separations, new technology, business advisory services
and other costs. Although we are still evaluating certain aspects
of the initial phases of the Initiative, for which the associated
costs are not yet deemed probable and reasonably estimable, we
expect to record the majority of the charges related to the initial
phases of the Initiative by the end of the first half of 2025, with
the initial charges being recorded beginning in the fourth quarter
of 2024. As we further develop and finalize detailed plans for the
additional phases of the Initiative, we plan to update estimated
related costs and cumulative cost savings as such amounts become
probable and reasonably estimable.
Cash Returns to Shareholders
Share Repurchase Program
- In the third quarter, we repurchased 13.5 million shares at an
average price of $50.37, for a total cost of $680 million. Through
the first nine months, we repurchased 67.6 million shares at an
average price of $45.68, for a total cost of $3.1 billion.
- As of September 30, 2024, we had $310 million remaining under
our currently authorized $3.4 billion share repurchase program,
which we expect to complete by December 31, 2024. Share repurchases
depend on marketplace conditions and other factors, and the program
remains subject to the discretion of our Board of Directors
(Board).
Dividends
- We paid dividends of $1.7 billion and $5.1 billion in the third
quarter and first nine months, respectively.
- In August, our Board increased our regular quarterly dividend
by 4.1%, marking the 59th increase in the past 55 years. Our
current annualized dividend rate is $4.08 per share.
- We maintain our progressive dividend goal that targets
mid-single digits dividend per share growth annually through 2028.
Future dividend payments remain subject to the discretion of our
Board.
Environmental, Social and Governance
Our Corporate Responsibility Focus Areas are: (i) reduce the
harm of tobacco products, (ii) prevent underage use, (iii) protect
the environment, (iv) drive responsibility through our value chain,
(v) support our people and communities and (vi) engage and lead
responsibly. Our corporate responsibility reports are available on
the Responsibility section of www.altria.com.
- In 2023, we achieved essentially all of our 2030 environmental
targets ahead of schedule, and we submitted revised 2030 greenhouse
gas emissions targets to the Science Based Targets Initiative
(SBTi) for validation. In October 2024, we established new
SBTi-approved targets, including a net-zero emissions by 2050
target. For more information on our strategy to protect the
environment, please visit www.altria.com/responsibility.
- In 2023, we commenced an equity and civil rights assessment
(Assessment) in response to a 2022 shareholder proposal requesting
that we commission a civil rights equity audit. The Assessment is
Altria-led and overseen by an external independent Advisory Review
Board. We have completed the Assessment and third-party assurance
of the draft report is currently underway. We expect to publish the
final report by the end of 2024.
2024 Full-Year Guidance
We reaffirm our guidance to deliver 2024 full-year adjusted
diluted EPS in a range of $5.07 to $5.15, representing a growth
rate of 2.5% to 4% from a base of $4.95 in 2023. We expect 2024
adjusted diluted EPS growth to be weighted to the second half of
the year. Our guidance includes the impact of two additional
shipping days in 2024, the first of which occurred in the third
quarter, and assumes limited impact on combustible and e-vapor
product volumes from enforcement efforts in the illicit e-vapor
market.
While our 2024 full-year adjusted diluted EPS guidance accounts
for a range of scenarios, the external environment remains dynamic.
We will continue to monitor conditions related to (i) the economy,
including the cumulative impact of inflation, (ii) adult tobacco
consumer (ATC) dynamics, including purchasing patterns and adoption
of smoke-free products, (iii) illicit e-vapor enforcement and (iv)
regulatory, litigation and legislative developments.
Our 2024 full-year adjusted diluted EPS guidance range includes
planned investments in support of our Vision, such as (i)
marketplace activities in support of our smoke-free products and
(ii) continued smoke-free product research, development and
regulatory preparation expenses. This guidance range excludes the
special items for the first nine months of 2024 shown in Table 1
and the per share impacts that we expect to record in the fourth
quarter of 2024 related to (i) income tax items of approximately
$0.9 billion for the expected reversal of an unrecognized tax
benefit resulting in the partial release of a valuation allowance
related to our former investment in JUUL Labs, Inc. (JUUL) in
connection with an agreement reached in October 2024 with the
Internal Revenue Service, and (ii) the charges associated with the
Initiative discussed above.
We continue to expect our 2024 full-year adjusted effective tax
rate to be in a range of 24% to 25%. We now expect our 2024 capital
expenditures to be between $125 million and $175 million, a change
from our previous expectation of $175 million to $225 million and
expect our 2024 depreciation and amortization expenses to be
approximately $285 million, a change from our previous expectation
of $310 million.
Our full-year adjusted diluted EPS guidance range and full-year
forecast for our adjusted effective tax rate exclude the impact of
certain income and expense items that our management believes are
not part of underlying operations. These items may include, for
example, loss on early extinguishment of debt, restructuring
charges, asset impairment charges, acquisition, disposition and
integration-related items, equity investment-related special items,
certain income tax items, charges associated with tobacco and
health and certain other litigation items, and resolutions of
certain non-participating manufacturer (NPM) adjustment disputes
under the Master Settlement Agreement (NPM Adjustment Items). See
Table 1 below for the income and expense items for the third
quarter and first nine months of 2024.
Our management cannot estimate on a forward-looking basis the
impact of certain income and expense items, including those items
noted in the preceding paragraph, on our reported diluted EPS or
our effective tax rate because these items, which could be
significant, may be unusual or infrequent, are difficult to predict
and may be highly variable. As a result, we do not provide a
corresponding U.S. generally accepted accounting principles (GAAP)
measure for, or reconciliation to, our adjusted diluted EPS
guidance or our adjusted effective tax rate forecast.
ALTRIA GROUP, INC.
See “Basis of Presentation” below for an explanation of
financial measures and reporting segments discussed in this
release.
Financial Performance
Third Quarter
- Net revenues decreased 0.4% to $6.3 billion, primarily driven
by lower net revenues in the smokeable products segment and the all
other category, partially offset by higher net revenues in the oral
tobacco products segment. Revenues net of excise taxes increased
1.3% to $5.3 billion.
- Reported diluted EPS increased 9.8% to $1.34, primarily driven
by fewer shares outstanding, higher operating companies income
(OCI) and lower ABI-related special items, partially offset by
higher costs associated with the acquisition of NJOY.
- Adjusted diluted EPS increased 7.8% to $1.38, primarily driven
by fewer shares outstanding and higher adjusted OCI.
First Nine Months
- Net revenues decreased 2.5% to $18.0 billion, driven by lower
net revenues in the smokeable products segment, partially offset by
higher net revenues in the oral tobacco products segment. Revenues
net of excise taxes decreased 0.9% to $15.3 billion.
- Reported diluted EPS increased 39.7% to $4.75, primarily driven
by the gain on the assignment of the IQOS Tobacco Heating System
commercialization rights to Philip Morris International Inc. (PMI),
2023 charges related to our former investment in JUUL, lower
tobacco and health and certain other litigation items, fewer shares
outstanding and the partial sale of our investment in ABI and
related favorable income tax items. These items were partially
offset by lower reported OCI, which includes a non-cash impairment
of the Skoal trademark, and higher costs associated with the
acquisition of NJOY.
- Adjusted diluted EPS increased 1.6% to $3.84, primarily driven
by fewer shares outstanding, partially offset by lower adjusted
OCI.
Table 1 - Altria’s Adjusted
Results
Third Quarter
Nine Months Ended September
30,
2024
2023
Change
2024
2023
Change
Reported diluted EPS
$
1.34
$
1.22
9.8
%
$
4.75
$
3.40
39.7
%
NPM Adjustment Items
(0.01
)
—
(0.01
)
—
Acquisition, disposition and
integration-related items
0.02
—
(1.07
)
—
Asset impairment
—
—
0.15
—
Tobacco and health and certain other
litigation items
0.01
0.01
0.04
0.18
Loss on disposition of JUUL equity
securities
—
—
—
0.14
ABI-related special items
0.01
0.03
(0.01
)
0.02
Cronos-related special items
—
—
0.01
0.02
Income tax items
0.01
0.02
(0.02
)
0.02
Adjusted diluted EPS
$
1.38
$
1.28
7.8
%
$
3.84
$
3.78
1.6
%
Note: For details of pre-tax, tax and after-tax amounts, see
Schedules 7 and 9.
Special Items
The EPS impact of the following special items is shown in Table
1 and Schedules 6, 7, 8 and 9.
Acquisition, Disposition and Integration-Related
Items
In the third quarter of 2024, we recorded pre-tax expenses of
$44 million (or $0.02 per share) for NJOY acquisition-related
costs. In the first nine months of 2024, we recorded net pre-tax
income of $2.5 billion (or $1.07 per share) of acquisition,
disposition and integration-related items, primarily related to a
pre-tax gain of $2.7 billion on the assignment of the IQOS Tobacco
Heating System commercialization rights to PMI in April 2024,
partially offset by pre-tax expenses associated with the
acquisition of NJOY, including a pre-tax charge of $140 million
related to a change in the fair value of the contingent
payments.
Asset Impairment
In the first nine months of 2024, we recorded a non-cash,
pre-tax charge of $354 million (or $0.15 per share) for an
impairment of the Skoal trademark.
Tobacco and Health and Certain Other Litigation Items
In the first nine months of 2024, we recorded pre-tax charges of
$90 million (or $0.04 per share) for tobacco and health and certain
other litigation items and related interest costs.
In the first nine months of 2023, we recorded pre-tax charges of
$424 million (or $0.18 per share) for tobacco and health and
certain other litigation items and related interest costs,
primarily driven by our settlement of JUUL-related litigation.
Loss on Disposition of JUUL Equity Securities
In the first nine months of 2023, we recorded a non-cash,
pre-tax loss of $250 million (or $0.14 per share) related to the
disposition of our former investment in JUUL. We recorded a
corresponding adjustment to the JUUL tax valuation allowance.
ABI-Related Special Items
In the first nine months of 2024, we recorded net pre-tax income
of $39 million (or $0.01 per share) for ABI-related special items,
primarily related to our pre-tax gain on the partial sale of our
investment in ABI, net of transaction costs, partially offset by
mark-to-market losses on certain ABI financial instruments
associated with its share commitments.
In the third quarter and first nine months of 2023, we recorded
net pre-tax losses of $82 million (or $0.03 per share) and $54
million (or $0.02 per share), respectively, for ABI-related special
items consisting primarily of mark-to-market losses on certain ABI
financial instruments associated with its share commitments.
The ABI-related special items include our respective share of
the amounts recorded by ABI and additional adjustments related to
(i) the conversion of ABI-related special items from international
financial reporting standards to GAAP and (ii) adjustments to our
investment required under the equity method of accounting.
Cronos-Related Special Items
In the first nine months of 2023, we recorded pre-tax losses of
$30 million (or $0.02 per share) for Cronos-related special items,
substantially all of which related to our share of special items
recorded by Cronos. We recorded a corresponding adjustment to the
Cronos tax valuation allowance.
Income Tax Items
In the first nine months of 2024, we recorded income tax items
of $41 million (or $0.02 per share), due primarily to an income tax
benefit from the partial release of a valuation allowance on
JUUL-related losses, partially offset by interest expense on tax
reserves recorded in prior years. The valuation allowance release
was due to the capital gain associated with the partial sale of our
investment in ABI.
In the third quarter and first nine months of 2023, we recorded
income tax items of $29 million (or $0.02 per share), due primarily
to tax expense associated with a tax basis adjustment related to
our investment in ABI.
SMOKEABLE PRODUCTS
Revenues and OCI
Third Quarter
- Net revenues decreased 0.6%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes increased 1.2%.
- Reported and adjusted OCI increased 7.1%, primarily driven by
higher pricing and lower selling, general and administrative
(SG&A) costs, partially offset by lower shipment volume, higher
promotional investments and higher per unit settlement charges.
Adjusted OCI margins increased by 3.5 percentage points to
63.1%.
First Nine Months
- Net revenues decreased 3.3%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes decreased 1.7%.
- Reported OCI increased 1.1%, primarily driven by higher pricing
and lower SG&A costs, partially offset by lower shipment
volume, higher promotional investments, higher per unit settlement
charges and higher manufacturing costs.
- Adjusted OCI increased 0.9%, primarily driven by higher pricing
and lower SG&A costs, partially offset by lower shipment
volume, higher promotional investments, higher per unit settlement
charges and higher manufacturing costs. Adjusted OCI margins
increased by 1.6 percentage points to 61.7%.
Table 2 - Smokeable Products: Revenues
and OCI ($ in millions)
Third Quarter
Nine Months Ended September
30,
2024
2023
Change
2024
2023
Change
Net revenues
$
5,540
$
5,572
(0.6
)%
$
15,941
$
16,482
(3.3
)%
Excise taxes
(888
)
(976
)
(2,630
)
(2,945
)
Revenues net of excise taxes
$
4,652
$
4,596
1.2
%
$
13,311
$
13,537
(1.7
)%
Reported OCI
$
2,937
$
2,743
7.1
%
$
8,183
$
8,092
1.1
%
NPM Adjustment Items
(23
)
(15
)
(29
)
(15
)
Tobacco and health and certain other
litigation items
21
13
59
65
Adjusted OCI
$
2,935
$
2,741
7.1
%
$
8,213
$
8,142
0.9
%
Reported OCI margins 1
63.1
%
59.7
%
3.4 pp
61.5
%
59.8
%
1.7 pp
Adjusted OCI margins 1
63.1
%
59.6
%
3.5 pp
61.7
%
60.1
%
1.6 pp
1 Reported and adjusted OCI margins are calculated as reported
and adjusted OCI, respectively, divided by revenues net of excise
taxes.
Shipment Volume
Third Quarter
- Smokeable products segment reported domestic cigarette shipment
volume decreased 8.6%, primarily driven by the industry’s decline
rate (impacted by the growth of illicit e-vapor products and
continued discretionary income pressures on ATCs) and retail share
losses, partially offset by trade inventory movements and calendar
differences.
- When adjusted for trade inventory movements and calendar
differences, smokeable products segment domestic cigarette shipment
volume decreased by an estimated 11.5%.
- When adjusted for trade inventory movements and calendar
differences, total estimated domestic cigarette industry volume
decreased by an estimated 9%.
- Reported cigar shipment volume decreased 1.6%.
First Nine Months
- Smokeable products segment reported domestic cigarette shipment
volume decreased 10.6%, primarily driven by the industry’s decline
rate (impacted by the growth of illicit e-vapor products and
continued discretionary income pressures on ATCs), retail share
losses and trade inventory movements, partially offset by calendar
differences.
- When adjusted for calendar differences and trade inventory
movements, smokeable products segment domestic cigarette shipment
volume decreased by an estimated 11%.
- When adjusted for calendar differences, trade inventory
movements and other factors, total estimated domestic cigarette
industry volume decreased by an estimated 9%.
- Reported cigar shipment volume decreased 2.8%.
Table 3 - Smokeable Products: Reported
Shipment Volume (sticks in millions)
Third Quarter
Nine Months Ended September
30,
2024
2023
Change
2024
2023
Change
Cigarettes:
Marlboro
16,122
17,437
(7.5
)%
47,411
52,339
(9.4
)%
Other premium
824
895
(7.9
)%
2,397
2,674
(10.4
)%
Discount
695
970
(28.4
)%
2,181
3,119
(30.1
)%
Total cigarettes
17,641
19,302
(8.6
)%
51,989
58,132
(10.6
)%
Cigars:
Black & Mild
443
451
(1.8
)%
1,320
1,359
(2.9
)%
Other
1
—
100.0
%
3
2
50.0
%
Total cigars
444
451
(1.6
)%
1,323
1,361
(2.8
)%
Total smokeable products
18,085
19,753
(8.4
)%
53,312
59,493
(10.4
)%
Note: Cigarettes volume includes units sold as well as
promotional units but excludes units sold for distribution to
Puerto Rico, U.S. Territories to overseas military and by Philip
Morris Duty Free Inc., none of which, individually or in the
aggregate, is material to our smokeable products segment.
Retail Share and Brand Activity
Third Quarter
- Marlboro retail share of the total cigarette category was
41.7%, a decrease of 0.6 share points versus the prior year and 0.3
share points sequentially. Marlboro share of the premium segment
was 59.3%, an increase of 0.3 share points versus the prior year
and a decrease of 0.1 share point sequentially.
- The cigarette industry discount retail share was 29.8%, an
increase of 1.5 share points versus the prior year and 0.5 share
points sequentially, primarily due to continued discretionary
income pressures on ATCs.
First Nine Months
- Marlboro retail share of the total cigarette category was
41.9%, a decrease of 0.2 share points. Marlboro share of the
premium segment was 59.3%, an increase of 0.5 share points.
- The cigarette industry discount retail share was 29.4%, an
increase of 1.1 share points, primarily due to continued
discretionary income pressures on ATCs.
Table 4 - Smokeable Products:
Cigarettes Retail Share (percent)
Third Quarter
Nine Months Ended September
30,
2024
2023
Percentage point
change
2024
2023
Percentage point
change
Cigarettes:
Marlboro
41.7
%
42.3
%
(0.6
)
41.9
%
42.1
%
(0.2
)
Other premium
2.2
2.3
(0.1
)
2.2
2.3
(0.1
)
Discount
1.8
2.4
(0.6
)
2.0
2.6
(0.6
)
Total cigarettes
45.7
%
47.0
%
(1.3
)
46.1
%
47.0
%
(0.9
)
Note: Retail share results for cigarettes are based on data from
Circana, LLC (Circana) as well as MSAi. Circana maintains a blended
retail service that uses a sample of stores and certain wholesale
shipments to project market share and depict share trends. This
service tracks sales in the food, drug, mass merchandisers,
convenience, military, dollar store and club trade classes. For
other trade classes selling cigarettes, retail share is based on
shipments from wholesalers to retailers through the Store Tracking
Analytical Reporting System (STARS), as provided by MSAi. This
service is not designed to capture sales through other channels,
including the internet, direct mail and some illicitly
tax-advantaged outlets. It is the standard practice of retail
services to periodically refresh their retail scan services, which
could restate retail share results that were previously released in
these services.
ORAL TOBACCO PRODUCTS
Revenues and OCI
Third Quarter
- Net revenues increased 5.4%, primarily driven by higher pricing
and higher shipment volume, partially offset by higher promotional
investments and a higher percentage of on! shipment volume relative
to MST versus the prior year (mix change). Revenues net of excise
taxes increased 5.8%.
- Reported and adjusted OCI increased 2.0%, primarily driven by
higher pricing and higher shipment volume, partially offset by
higher SG&A costs, higher promotional investments and mix
change. Adjusted OCI margins decreased by 2.5 percentage points to
66.8%.
First Nine Months
- Net revenues increased 4.6%, driven by higher pricing,
partially offset by mix change and lower shipment volume. Revenues
net of excise taxes increased 5.2%.
- Reported OCI decreased 24.2%, primarily driven by a non-cash
impairment of the Skoal trademark, mix change, higher SG&A
costs and lower shipment volume, partially offset by higher
pricing.
- Adjusted OCI increased 2.7%, primarily driven by higher
pricing, partially offset by mix change, higher SG&A costs and
lower shipment volume. Adjusted OCI margins decreased by 1.7
percentage points to 67.2%.
Table 5 - Oral Tobacco Products:
Revenues and OCI ($ in millions)
Third Quarter
Nine Months Ended September
30,
2024
2023
Change
2024
2023
Change
Net revenues
$ 722
$ 685
5.4
%
$ 2,084
$ 1,993
4.6
%
Excise taxes
(27
)
(28
)
(76
)
(85
)
Revenues net of excise taxes
$ 695
$ 657
5.8
%
$ 2,008
$ 1,908
5.2
%
Reported OCI
$ 464
$ 455
2.0
%
$ 996
$ 1,314
(24.2
)%
Asset impairment
—
—
354
—
Adjusted OCI
$ 464
$ 455
2.0
%
$ 1,350
$ 1,314
2.7
%
Reported OCI margins 1
66.8
%
69.3
%
(2.5) pp
49.6
%
68.9
%
(19.3) pp
Adjusted OCI margins 1
66.8
%
69.3
%
(2.5) pp
67.2
%
68.9
%
(1.7) pp
1 Reported and adjusted OCI margins are calculated as reported
and adjusted OCI, respectively, divided by revenues net of excise
taxes.
Shipment Volume
Third Quarter
- Oral tobacco products segment reported domestic shipment volume
increased 1.2%, primarily driven by the industry’s growth rate,
calendar differences and other factors, partially offset by retail
share losses and trade inventory movements. When adjusted for
calendar differences and trade inventory movements, oral tobacco
products segment shipment volume decreased by an estimated 1%.
First Nine Months
- Oral tobacco products segment reported domestic shipment volume
decreased 1.3%, primarily driven by retail share losses and trade
inventory movements, partially offset by the industry’s growth
rate, calendar differences and other factors. When adjusted for
calendar differences and trade inventory movements, oral tobacco
products segment shipment volume decreased by an estimated
2.5%.
- Total oral tobacco industry volume increased by an estimated
7.5% over the six months ended September 30, 2024, primarily driven
by growth in oral nicotine pouches, partially offset by declines in
MST volumes.
Table 6 - Oral Tobacco Products:
Reported Shipment Volume (cans and packs in millions)
Third Quarter
Nine Months Ended September
30,
2024
2023
Change
2024
2023
Change
Copenhagen
101.4
109.4
(7.3
)%
304.4
333.3
(8.7
)%
Skoal
37.4
40.4
(7.4
)%
111.6
123.3
(9.5
)%
on!
41.9
28.7
46.0
%
116.4
83.9
38.7
%
Other
16.4
16.3
0.6
%
50.0
49.3
1.4
%
Total oral tobacco products
197.1
194.8
1.2
%
582.4
589.8
(1.3
)%
Note: Volume includes cans and packs sold, as well as
promotional units, but excludes international volume, which is
currently not material to our oral tobacco products segment. New
types of oral tobacco products, as well as new packaging
configurations of existing oral tobacco products, may or may not be
equivalent to existing MST products on a can-for-can basis. To
calculate volumes of cans and packs shipped, one pack of snus or
one can of oral nicotine pouches, irrespective of the number of
pouches in the pack, is assumed to be equivalent to one can of
MST.
Retail Share and Brand Activity
Third Quarter
- Oral tobacco products segment retail share was 37.6%, as share
declines for MST products were partially offset by oral nicotine
pouch segment share growth.
- Total U.S. oral tobacco category share for on! nicotine pouches
was 8.9%, an increase of 2.0 share points versus the prior year and
0.8 share points sequentially.
- The U.S. nicotine pouch category grew to 43.9% of the U.S. oral
tobacco category, an increase of 11.4 share points versus the prior
year. In addition, on!’s share of the nicotine pouch category was
20.3%, a decrease of 0.9 share points versus the prior year and an
increase of 0.9 share points sequentially.
First Nine Months
- Oral tobacco products segment retail share was 37.8%, as share
declines for MST products were partially offset by oral nicotine
pouch segment share growth.
- Total U.S. oral tobacco category share for on! nicotine pouches
was 8.0%, an increase of 1.2 share points versus the prior
year.
- The U.S. nicotine pouch category grew to 41.9% of the U.S. oral
tobacco category, an increase of 12.4 share points versus the prior
year. In addition, on!’s share of the nicotine pouch category was
19.1%, a decrease of 3.8 share points versus the prior year.
Table 7 - Oral Tobacco Products: Retail
Share (percent)
Third Quarter
Nine Months Ended September
30,
2024
2023
Percentage point
change
2024
2023
Percentage point
change
Copenhagen
18.7
%
23.0
%
(4.3
)
19.4
%
24.1
%
(4.7
)
Skoal
7.4
9.1
(1.7
)
7.7
9.6
(1.9
)
on!
8.9
6.9
2.0
8.0
6.8
1.2
Other
2.6
2.8
(0.2
)
2.7
2.9
(0.2
)
Total oral tobacco products
37.6
%
41.8
%
(4.2
)
37.8
%
43.4
%
(5.6
)
Note: Our oral tobacco products segment’s retail share results
exclude international volume, which is currently not material to
our oral tobacco products segment. Retail share results for oral
tobacco products are based on data from Circana, a tracking service
that uses a sample of stores to project market share and depict
share trends. This service tracks sales in the food, drug, mass
merchandisers, convenience, military, dollar store and club trade
classes on the number of cans and packs sold. Oral tobacco products
are defined by Circana as domestic tobacco derived oral products,
in the form of MST, snus and oral nicotine pouches. New types of
oral tobacco products, as well as new packaging configurations of
existing oral tobacco products, may or may not be equivalent to
existing MST products on a can-for-can basis. For example, one pack
of snus or one can of oral nicotine pouches, irrespective of the
number of pouches in the pack, is assumed to be equivalent to one
can of MST. Because this service represents retail share
performance only in key trade channels, it should not be considered
a precise measurement of actual retail share. It is the standard
practice of retail services to periodically refresh their retail
scan services, which could restate retail share results that were
previously released in these services.
Altria’s Profile
We have a leading portfolio of tobacco products for U.S. tobacco
consumers age 21+. Our Vision is to responsibly lead the transition
of adult smokers to a smoke-free future (Vision). We are Moving
Beyond Smoking™, leading the way in moving adult smokers away from
cigarettes by taking action to transition millions to potentially
less harmful choices - believing it is a substantial opportunity
for adult tobacco consumers, our businesses and society.
Our wholly owned subsidiaries include leading manufacturers of
both combustible and smoke-free products. In combustibles, we own
Philip Morris USA Inc. (PM USA), the most profitable U.S. cigarette
manufacturer, and John Middleton Co. (Middleton), a leading U.S.
cigar manufacturer. Our smoke-free portfolio includes ownership of
U.S. Smokeless Tobacco Company LLC (USSTC), the leading global
moist smokeless tobacco (MST) manufacturer, Helix Innovations LLC
(Helix), a leading manufacturer of oral nicotine pouches, and NJOY,
LLC (NJOY), an e-vapor manufacturer with a commercialized product
portfolio fully covered by marketing granted orders from the U.S.
Food and Drug Administration (FDA).
Additionally, we have a majority-owned joint venture, Horizon
Innovations LLC (Horizon), for the U.S. marketing and
commercialization of heated tobacco stick products.
Our equity investments include Anheuser-Busch InBev SA/NV (ABI),
the world’s largest brewer, and Cronos Group Inc. (Cronos), a
leading Canadian cannabinoid company.
The brand portfolios of our operating companies include
Marlboro®, Black & Mild®, Copenhagen®, Skoal®, on!® and NJOY®.
Trademarks related to Altria referenced in this release are the
property of Altria or our subsidiaries or are used with
permission.
Learn more about Altria at www.altria.com and follow us on X (formerly known
as Twitter), Facebook and LinkedIn.
Basis of Presentation
We report our financial results in accordance with GAAP. Our
management reviews OCI, which is defined as operating income before
general corporate expenses and amortization of intangibles, to
evaluate the performance of, and allocate resources to, our
segments. Our management also reviews certain financial results,
including OCI, OCI margins and diluted EPS, on an adjusted basis,
which excludes certain income and expense items, including those
items noted under “2024 Full-Year Guidance.” Our management does
not view any of these special items to be part of our underlying
results as they may be highly variable, may be unusual or
infrequent, are difficult to predict and can distort underlying
business trends and results. Our management also reviews income tax
rates on an adjusted basis. Our adjusted effective tax rate may
exclude certain income tax items from our reported effective tax
rate. Our management believes that adjusted financial measures
provide useful additional insight into underlying business trends
and results, and provide a more meaningful comparison of
year-over-year results. Our management uses adjusted financial
measures for planning, forecasting and evaluating business and
financial performance, including allocating capital and other
resources and evaluating results relative to employee compensation
targets. These adjusted financial measures are not required by, or
calculated in accordance with, GAAP and may not be calculated the
same as similarly titled measures used by other companies. These
adjusted financial measures should thus be considered as
supplemental in nature and not considered in isolation or as a
substitute for the related financial information prepared in
accordance with GAAP. We provide reconciliations of historical
adjusted financial measures to corresponding GAAP measures in this
release.
We use the equity method of accounting for our investment in ABI
and Cronos and report our share of ABI’s and Cronos’s results using
a one-quarter lag because ABI’s and Cronos’s results are not
available in time for us to record them in the concurrent period.
The one-quarter reporting lag for ABI and Cronos does not affect
our cash flows. We accounted for our former investment in the
equity securities of JUUL at fair value.
Our reportable segments are (i) smokeable products, consisting
of combustible cigarettes and machine-made large cigars, and (ii)
oral tobacco products, consisting of MST, snus and oral nicotine
pouches. We have included results for NJOY, Horizon, Helix
International, and other business activities, substantially all of
which consist of research and development expense related to
certain new product platforms and technologies in “All Other.”
Comparisons are to the corresponding prior-year period unless
otherwise stated.
Forward-Looking and Cautionary Statements
This release contains projections of future results and other
forward-looking statements that are subject to a number of risks
and uncertainties and are made pursuant to the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of
1995.
Important factors that may cause actual results to differ
materially from those contained in the forward-looking statements
included in this release are described in our publicly filed
reports, including our Annual Report on Form 10-K for the year
ended December 31, 2023. These factors include the following:
- our inability to anticipate and respond to changes in adult
tobacco consumer preferences and purchase behavior;
- our inability to compete effectively;
- the growth of the e-vapor category, including illicit
disposable e-vapor products, which contributes to reductions in
domestic cigarette consumption levels and shipment volume;
- the risks associated with illicit trade in tobacco products
(including counterfeit products, illegally imported products,
illicit disposable e-vapor products and oral nicotine pouch
products) and the sale of products designed to avoid the regulatory
framework for tobacco products, such as products using nicotine
analogues, each of which contribute to reductions in the
consumption levels and shipment volumes of our businesses’
products;
- our failure to develop and commercialize innovative products,
including tobacco products that may reduce health risks relative to
other tobacco products and appeal to adult tobacco consumers;
- changes, including in macroeconomic and geopolitical conditions
(including inflation), that result in shifts in adult tobacco
consumer disposable income and purchasing behavior, including
choosing lower-priced and discount brands or products, and
reductions in shipment volumes;
- unfavorable outcomes with respect to litigation proceedings or
any governmental investigations, including significant monetary and
non-monetary remedies and importation bans;
- the risks associated with significant federal, state and local
government actions, including FDA regulatory actions and inaction,
and various private sector actions;
- increases in tobacco product-related taxes;
- our failure to complete or manage successfully strategic
transactions, including the NJOY Transaction and other
acquisitions, dispositions, joint ventures and investments in third
parties, or realize the anticipated benefits of such
transactions;
- significant changes in price, availability or quality of
tobacco, other raw materials or component parts, including as a
result of changes in macroeconomic, climate and geopolitical
conditions;
- our reliance on a few significant facilities and a small number
of key suppliers, distributors and distribution chain service
providers and the risks associated with an extended disruption at a
facility or in service by a supplier, distributor or distribution
chain service provider;
- the risk that we may be required to write down intangible
assets, including trademarks and goodwill, due to impairment;
- the risk that we could decide, or be required, to recall
products;
- the various risks related to health epidemics and pandemics and
the measures that international, federal, state and local
governments, agencies, law enforcement and health authorities
implement to address them;
- our inability to attract and retain a highly skilled and
diverse workforce due to the decreasing social acceptance of
tobacco usage, tobacco control actions and other factors;
- the risks associated with the various U.S. and foreign laws and
regulations to which we are subject due to our international
business operations;
- the risks concerning a challenge to our tax positions, an
increase in the income tax rate or other changes to federal or
state tax laws;
- the risks associated with legal and regulatory requirements
related to climate change and other environmental sustainability
matters;
- disruption and uncertainty in the credit and capital markets,
including risk of losing access to these markets;
- a downgrade or potential downgrade of our credit ratings;
- our inability to attract investors due to increasing investor
expectations of our performance relating to corporate
responsibility factors, including environmental, social and
governance matters;
- the failure of our, or our key service providers’ or key
suppliers’, information systems to function as intended, or
cyber-attacks or security breaches affecting us or our key service
providers or key suppliers;
- our failure, or the failure of our key service providers or key
suppliers, to comply with laws related to personal data protection,
privacy, artificial intelligence and information security;
- our ability to recognize the expected cost savings in
connection with the Initiative or successfully reinvest those
savings in our businesses in support of our Vision and 2028
Enterprise Goals, in each case, in the expected manner or time
frame or at all;
- the risk that the expected benefits of our investment in ABI
may not materialize in the expected manner or timeframe or at all,
including due to macroeconomic and geopolitical conditions; foreign
currency exchange rates; ABI’s business results; ABI’s share price;
impairment losses on the value of our investment; our incurrence of
additional tax liabilities related to our investment in ABI; and
reductions in the number of directors that we can have appointed to
the ABI board of directors; and
- the risks associated with our investment in Cronos, including
legal, regulatory and reputational risks and the risk that the
expected benefits of the transaction may not materialize in the
expected manner or timeframe or at all.
You should understand that it is not possible to predict or
identify all factors and risks. Consequently, you should not
consider the foregoing list to be complete. We do not undertake to
update any forward-looking statement that we may make from time to
time except as required by applicable law. All subsequent written
and oral forward-looking statements attributable to Altria or any
person acting on our behalf are expressly qualified in their
entirety by the cautionary statements referenced above.
Schedule 1
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of
Earnings
For the Quarters Ended September
30,
(dollars in millions, except per
share data)
(Unaudited)
2024
2023
% Change
Net revenues
$
6,259
$
6,281
(0.4
)%
Cost of sales 1
1,536
1,578
Excise taxes on products 1
915
1,004
Gross profit
3,808
3,699
2.9
%
Marketing, administration and research
costs
526
505
Operating companies income
3,282
3,194
2.8
%
Amortization of intangibles
38
42
General corporate expenses
92
63
Operating income
3,152
3,089
2.0
%
Interest and other debt expense, net
267
272
Net periodic benefit income, excluding
service cost
(25
)
(33
)
(Income) losses from investments in equity
securities 1
(116
)
(58
)
Earnings before income taxes
3,026
2,908
4.1
%
Provision for income taxes
733
742
Net earnings
$
2,293
$
2,166
5.9
%
Per share data:
Diluted earnings per share
$
1.34
$
1.22
9.8
%
Weighted-average diluted shares
outstanding
1,703
1,773
(3.9
)%
1 Cost of sales includes charges for
resolution expenses related to state settlement agreements and FDA
user fees. Supplemental information concerning those items, excise
taxes on products sold and (income) losses from investments in
equity securities is shown in Schedule 5.
Schedule 2
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data
For the Quarters Ended September
30,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable Products
Oral Tobacco Products
All Other
Total
2024
$
5,540
$
722
$
(3
)
$
6,259
2023
5,572
685
24
6,281
% Change
(0.6
)%
5.4
%
(100%+)
(0.4
)%
Reconciliation:
For the quarter ended September 30,
2023
$
5,572
$
685
$
24
$
6,281
Operations
(32
)
37
(27
)
(22
)
For the quarter ended September 30,
2024
$
5,540
$
722
$
(3
)
$
6,259
Operating Companies Income
(Loss)
Smokeable Products
Oral Tobacco Products
All Other
Total
2024
$
2,937
$
464
$
(119
)
$
3,282
2023
2,743
455
(4
)
3,194
% Change
7.1
%
2.0
%
(100%+)
2.8
%
Reconciliation:
For the quarter ended September 30,
2023
$
2,743
$
455
$
(4
)
$
3,194
NPM Adjustment Items - 2023
(15
)
—
—
(15
)
Tobacco and health and certain other
litigation items - 2023
13
—
—
13
(2
)
—
—
(2
)
NPM Adjustment Items - 2024
23
—
—
23
Tobacco and health and certain other
litigation items - 2024
(21
)
—
—
(21
)
2
—
—
2
Operations
194
9
(115
)
88
For the quarter ended September 30,
2024
$
2,937
$
464
$
(119
)
$
3,282
Schedule 3
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of
Earnings
For the Nine Months Ended
September 30,
(dollars in millions, except per
share data)
(Unaudited)
2024
2023
% Change
Net revenues
$
18,044
$
18,508
(2.5
)%
Cost of sales 1
4,575
4,693
Excise taxes on products 1
2,706
3,030
Gross profit
10,763
10,785
(0.2
)%
Marketing, administration and research
costs
1,521
1,396
Asset impairment
354
—
Operating companies income
8,888
9,389
(5.3
)%
Amortization of intangibles
102
87
General corporate expenses
427
551
Operating income
8,359
8,751
(4.5
)%
Interest and other debt expense, net
782
758
Net periodic benefit income, excluding
service cost
(74
)
(95
)
(Income) losses from investments in equity
securities 1
(530
)
(105
)
Gain on the sale of IQOS System
commercialization rights
(2,700
)
—
Earnings before income taxes
10,881
8,193
32.8
%
Provision for income taxes
2,656
2,123
Net earnings
$
8,225
$
6,070
35.5
%
Per share data2:
Diluted earnings per share
$
4.75
$
3.40
39.7
%
Weighted-average diluted shares
outstanding
1,726
1,780
(3.0
)%
1 Cost of sales includes charges for
resolution expenses related to state settlement agreements and FDA
user fees. Supplemental information concerning those items, excise
taxes on products sold and (income) losses from investments in
equity securities is shown in Schedule 5.
2 Diluted earnings per share are computed independently for each
period. Accordingly, the sum of the quarterly earnings per share
amounts may not agree to the year-to-date amounts.
Schedule 4
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data
For the Nine Months Ended
September 30,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable Products
Oral Tobacco Products
All Other
Total
2024
$
15,941
$
2,084
$
19
$
18,044
2023
16,482
1,993
33
18,508
% Change
(3.3
)%
4.6
%
(42.4
)%
(2.5
)%
Reconciliation:
For the nine months ended September 30,
2023
$
16,482
$
1,993
$
33
$
18,508
Operations
(541
)
91
(14
)
(464
)
For the nine months ended September 30,
2024
$
15,941
$
2,084
$
19
$
18,044
Operating Companies Income
(Loss)
Smokeable Products
Oral Tobacco Products
All Other
Total
2024
$
8,183
$
996
$
(291
)
$
8,888
2023
8,092
1,314
(17
)
9,389
% Change
1.1
%
(24.2
)%
(100%+)
(5.3
)%
Reconciliation:
For the nine months ended September 30,
2023
$
8,092
$
1,314
$
(17
)
$
9,389
NPM Adjustment Items - 2023
(15
)
—
—
(15
)
Tobacco and health and certain other
litigation items - 2023
65
—
—
65
50
—
—
50
NPM Adjustment Items - 2024
29
—
—
29
Asset impairment - 2024
—
(354
)
—
(354
)
Tobacco and health and certain other
litigation items - 2024
(59
)
—
—
(59
)
(30
)
(354
)
—
(384
)
Operations
71
36
(274
)
(167
)
For the nine months ended September 30,
2024
$
8,183
$
996
$
(291
)
$
8,888
Schedule 5
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data
(dollars in millions)
(Unaudited)
For the Quarters Ended
September 30,
For the Nine Months Ended
September 30,
2024
2023
2024
2023
The segment detail of excise taxes on
products sold is as follows:
Smokeable products
$
888
$
976
$
2,630
$
2,945
Oral tobacco products
27
28
76
85
$
915
$
1,004
$
2,706
$
3,030
The segment detail of charges for
resolution expenses related to state settlement agreements included
in cost of sales is as follows:
Smokeable products
$
875
$
921
$
2,654
$
2,832
Oral tobacco products
3
—
8
3
$
878
$
921
$
2,662
$
2,835
The segment detail of FDA user fees
included in cost of sales is as follows:
Smokeable products
$
66
$
63
$
190
$
193
Oral tobacco products
2
2
4
4
$
68
$
65
$
194
$
197
The detail of (income) losses from
investments in equity securities is as follows:
ABI
$
(121
)
$
(61
)
$
(555
)
$
(401
)
Cronos
5
3
25
46
JUUL
—
—
—
250
$
(116
)
$
(58
)
$
(530
)
$
(105
)
Schedule 6
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings
Per Share
For the Quarters Ended September
30,
(dollars in millions, except per
share data)
(Unaudited)
Net Earnings
Diluted EPS
2024 Net Earnings
$
2,293
$
1.34
2023 Net Earnings
$
2,166
$
1.22
% Change
5.9
%
9.8
%
Reconciliation:
2023 Net Earnings
$
2,166
$
1.22
2023 NPM Adjustment Items
(11
)
—
2023 Acquisition, disposition and
integration-related items
9
—
2023 Tobacco and health and certain other
litigation items
17
0.01
2023 ABI-related special items
65
0.03
2023 Income tax items
29
0.02
Subtotal 2023 special items
109
0.06
2024 NPM Adjustment Items
15
0.01
2024 Acquisition, disposition and
integration-related items
(33
)
(0.02
)
2024 Tobacco and health and certain other
litigation items
(16
)
(0.01
)
2024 ABI-related special items
(18
)
(0.01
)
2024 Cronos-related special items
(1
)
—
2024 Income tax items
(11
)
(0.01
)
Subtotal 2024 special items
(64
)
(0.04
)
Fewer shares outstanding
—
0.05
Change in tax rate
17
0.01
Operations
65
0.04
2024 Net Earnings
$
2,293
$
1.34
Schedule 7
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and
non-GAAP Measures
For the Quarters Ended September
30,
(dollars in millions, except per
share data)
(Unaudited)
Earnings
before Income
Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS
2024 Reported
$
3,026
$
733
$
2,293
$
1.34
NPM Adjustment Items
(21
)
(6
)
(15
)
(0.01
)
Acquisition, disposition and
integration-related items
44
11
33
0.02
Tobacco and health and certain other
litigation items
22
6
16
0.01
ABI-related special items
23
5
18
0.01
Cronos-related special items
2
1
1
—
Income tax items
—
(11
)
11
0.01
2024 Adjusted for Special Items
$
3,096
$
739
$
2,357
$
1.38
2023 Reported
$
2,908
$
742
$
2,166
$
1.22
NPM Adjustment Items
(15
)
(4
)
(11
)
—
Acquisition, disposition and
integration-related items
13
4
9
—
Tobacco and health and certain other
litigation items
23
6
17
0.01
ABI-related special items
82
17
65
0.03
Income tax items
—
(29
)
29
0.02
2023 Adjusted for Special Items
$
3,011
$
736
$
2,275
$
1.28
2024 Reported Net Earnings
$
2,293
$
1.34
2023 Reported Net Earnings
$
2,166
$
1.22
% Change
5.9
%
9.8
%
2024 Net Earnings Adjusted for Special
Items
$
2,357
$
1.38
2023 Net Earnings Adjusted for Special
Items
$
2,275
$
1.28
% Change
3.6
%
7.8
%
Schedule 8
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings
Per Share
For the Nine Months Ended
September 30,
(dollars in millions, except per
share data)
(Unaudited)
Net Earnings
Diluted EPS1
2024 Net Earnings
$
8,225
$
4.75
2023 Net Earnings
$
6,070
$
3.40
% Change
35.5
%
39.7
%
Reconciliation:
2023 Net Earnings
$
6,070
$
3.40
2023 NPM Adjustment Items
(11
)
—
2023 Acquisition, disposition and
integration-related items
10
—
2023 Tobacco and health and certain other
litigation items
318
0.18
2023 Loss on disposition of JUUL equity
securities
250
0.14
2023 ABI-related special items
43
0.02
2023 Cronos-related special items
30
0.02
2023 Income tax items
29
0.02
Subtotal 2023 special items
669
0.38
2024 NPM Adjustment Items
20
0.01
2024 Acquisition, disposition and
integration-related items
1,849
1.07
2024 Asset impairment
(264
)
(0.15
)
2024 Tobacco and health and certain other
litigation items
(68
)
(0.04
)
2024 ABI-related special items
30
0.01
2024 Cronos-related special items
(20
)
(0.01
)
2024 Income tax items
41
0.02
Subtotal 2024 special items
1,588
0.91
Fewer shares outstanding
—
0.12
Change in tax rate
35
0.02
Operations
(137
)
(0.08
)
2024 Net Earnings
$
8,225
$
4.75
1 Diluted earnings per share are computed
independently for each period. Accordingly, the sum of the
quarterly earnings per share amounts may not agree to the
year-to-date amounts
Schedule 9
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and
non-GAAP Measures
For the Nine Months Ended
September 30,
(dollars in millions, except per
share data)
(Unaudited)
Earnings
before
Income Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS1
2024 Reported
$
10,881
$
2,656
$
8,225
$
4.75
NPM Adjustment Items
(27
)
(7
)
(20
)
(0.01
)
Acquisition, disposition and
integration-related items
(2,513
)
(664
)
(1,849
)
(1.07
)
Asset impairment
354
90
264
0.15
Tobacco and health and certain other
litigation items
90
22
68
0.04
ABI-related special items
(39
)
(9
)
(30
)
(0.01
)
Cronos-related special items
22
2
20
0.01
Income tax items
—
41
(41
)
(0.02
)
2024 Adjusted for Special Items
$
8,768
$
2,131
$
6,637
$
3.84
2023 Reported
$
8,193
$
2,123
$
6,070
$
3.40
NPM Adjustment Items
(15
)
(4
)
(11
)
—
Acquisition, disposition and
integration-related items
14
4
10
—
Tobacco and health and certain other
litigation items
424
106
318
0.18
Loss on disposition of JUUL equity
securities
250
—
250
0.14
ABI-related special items
54
11
43
0.02
Cronos-related special items
30
—
30
0.02
Income tax items
—
(29
)
29
0.02
2023 Adjusted for Special Items
$
8,950
$
2,211
$
6,739
$
3.78
2024 Reported Net Earnings
$
8,225
$
4.75
2023 Reported Net Earnings
$
6,070
$
3.40
% Change
35.5
%
39.7
%
2024 Net Earnings Adjusted for Special
Items
$
6,637
$
3.84
2023 Net Earnings Adjusted for Special
Items
$
6,739
$
3.78
% Change
(1.5
)%
1.6
%
1 Diluted earnings per share are computed
independently for each period. Accordingly, the sum of the
quarterly earnings per share amounts may not agree to the
year-to-date amounts.
Schedule 10
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and
non-GAAP Measures
For the Year Ended December 31,
2023
(dollars in millions, except per
share data)
(Unaudited)
Earnings
before Income
Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS
2023 Reported
$
10,928
$
2,798
$
8,130
$
4.57
NPM Adjustment Items
(50
)
(12
)
(38
)
(0.02
)
Acquisition, disposition and
integration-related items
35
9
26
0.01
Tobacco and health and certain other
litigation items
430
107
323
0.18
Loss on disposition of JUUL equity
securities
250
—
250
0.14
ABI-related special items
89
19
70
0.03
Cronos-related special items
29
—
29
0.02
Income tax items
—
(32
)
32
0.02
2023 Adjusted for Special Items
$
11,711
$
2,889
$
8,822
$
4.95
Schedule 11
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Balance
Sheets
(dollars in millions)
(Unaudited)
September 30, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
1,897
$
3,686
Inventories
1,101
1,215
Other current assets
501
684
Property, plant and equipment, net
1,618
1,652
Goodwill and other intangible assets,
net
19,955
20,477
Investments in equity securities
8,153
10,011
Other long-term assets
942
845
Total assets
$
34,167
$
38,570
Liabilities and
Stockholders’ Equity (Deficit)
Current portion of long-term debt
$
1,585
$
1,121
Accrued settlement charges
2,118
2,563
Deferred gain from the sale of IQOS System
commercialization rights
—
2,700
Other current liabilities
4,293
4,935
Long-term debt
23,570
25,112
Deferred income taxes
3,208
2,799
Accrued pension costs
125
130
Accrued postretirement health care
costs
1,090
1,079
Other long-term liabilities
1,596
1,621
Total liabilities
37,585
42,060
Total stockholders’ equity (deficit)
attributable to Altria
(3,468
)
(3,540
)
Noncontrolling interest
50
50
Total liabilities and stockholders’
equity (deficit)
$
34,167
$
38,570
Total debt
$
25,155
$
26,233
Schedule 12
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data for
Special Items
For the Quarters Ended September
30,
(dollars in millions)
(Unaudited)
Cost of
Sales
Marketing,
administration
and research
costs
General
corporate
expenses
Interest and
other debt
(income)
expense, net
(Income) losses
from
investments in
equity securities
2024 Special Items - (Income)
Expense
NPM Adjustment Items
$
(23
)
$
—
$
—
$
2
$
—
Acquisition, disposition and
integration-related items
—
—
44
—
—
Tobacco and health and certain other
litigation items
—
21
—
1
—
ABI-related special items
—
—
—
—
23
Cronos-related special items
—
—
—
—
2
2023 Special Items - (Income)
Expense
NPM Adjustment Items
$
(15
)
$
—
$
—
$
—
$
—
Acquisition, disposition and
integration-related items
—
—
15
(2
)
—
Tobacco and health and certain other
litigation items
—
13
10
—
—
ABI-related special items
—
—
—
—
82
Note: This schedule is intended to provide supplemental
financial data for certain income and expense items that management
believes are not part of underlying operations and their
presentation in Altria’s consolidated statements of earnings. This
schedule is not intended to provide, or reconcile, non-GAAP
financial measures.
Schedule 13
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data for
Special Items
For the Nine Months Ended
September 30,
(dollars in millions)
(Unaudited)
Cost of
Sales
Marketing,
administration
and research
costs
Asset
impairment
General
corporate
expenses
Interest and
other debt
(income)
expense, net
(Income)
losses from
investments
in equity
securities
Gain on the sale of
IQOS System
commercialization
rights
2024 Special Items - (Income)
Expense
NPM Adjustment Items
$
(29
)
$
—
$
—
$
—
$
2
$
—
$
—
Acquisition, disposition and
integration-related items
—
—
—
187
—
(2,700
)
Asset impairment
—
—
354
—
—
—
—
Tobacco and health and certain other
litigation items
—
59
—
30
1
—
—
ABI-related special items
—
—
—
59
3
(101
)
—
Cronos-related special items
—
—
—
—
—
22
—
2023 Special Items - (Income)
Expense
NPM Adjustment Items
$
(15
)
$
—
$
—
$
—
$
—
$
—
$
—
Acquisition, disposition and
integration-related items
—
—
—
59
(45
)
—
—
Tobacco and health and certain other
litigation items
—
65
—
348
11
—
—
Loss on disposition of JUUL equity
securities
—
—
—
—
—
250
—
ABI-related special items
—
—
—
—
—
54
—
Cronos-related special items
—
—
—
—
—
30
—
Note: This schedule is intended to provide supplemental
financial data for certain income and expense items that management
believes are not part of underlying operations and their
presentation in our consolidated statements of earnings. This
schedule is not intended to provide, or reconcile, non-GAAP
financial measures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030955907/en/
Altria Client Services Investor Relations 804-484-8222
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Grafico Azioni Altria (NYSE:MO)
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Da Dic 2024 a Gen 2025
Grafico Azioni Altria (NYSE:MO)
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