Summary
In the fiscal year ending December 31, 2012, Altria Group, Inc. (MO) demonstrated resilience and growth, with net earnings attributable to Altria Group, Inc. increasing by 23.3% to $4.18 billion compared to the prior year. This growth was driven by strong performance across its key segments, particularly smokeable and smokeless products, supported by effective pricing strategies and cost management. The company also benefited from higher equity earnings from its significant investment in SABMiller plc. Despite facing ongoing regulatory and litigation challenges inherent in the tobacco industry, Altria managed its operations effectively, reflected in a 25.6% increase in diluted Earnings Per Share (EPS) to $2.06. Altria continued to return value to shareholders through a 7.3% increase in its quarterly dividend to $0.44 per share and substantial share repurchases totaling $1.1 billion under its $1.5 billion repurchase program. The company maintained a stable credit rating, with a positive outlook from major credit rating agencies, underscoring its financial stability. Looking ahead, Altria provided a cautious but optimistic forecast for 2013, expecting reported diluted EPS growth of 6% to 9%, reflecting confidence in its ongoing business strategies and ability to navigate the evolving market landscape.
Financial Highlights
54 data points| Revenue | $24.62B |
| Cost of Revenue | $7.94B |
| Gross Profit | $9.56B |
| R&D Expenses | $136.00M |
| Operating Income | $7.25B |
| Interest Expense | $1.13B |
| Net Income | $4.18B |
| EPS (Basic) | $2.06 |
| EPS (Diluted) | $2.06 |
| Shares Outstanding (Basic) | 2.02B |
| Shares Outstanding (Diluted) | 2.02B |
Key Highlights
- 1Net earnings attributable to Altria Group, Inc. increased by 23.3% to $4.18 billion in 2012, up from $3.39 billion in 2011.
- 2Diluted EPS grew by 25.6% to $2.06 in 2012, compared to $1.64 in 2011.
- 3The Smokeable Products segment reported higher operating companies income, driven by effective pricing and cost management, with Marlboro's retail share increasing.
- 4The Smokeless Products segment showed growth in operating companies income, attributed to higher pricing and combined volume and retail share performance of Copenhagen and Skoal.
- 5Altria's equity investment in SABMiller plc contributed significantly, with earnings increasing by 67.7% to $1.22 billion.
- 6The company repurchased approximately $1.1 billion of its common stock under its share repurchase program.
- 7Altria increased its quarterly dividend by 7.3% to $0.44 per common share, maintaining a target payout ratio of approximately 80% of adjusted diluted EPS.