Summary
Altria Group, Inc. reported total net revenues of $25.576 billion for the year ended December 31, 2017. The company's primary segments are smokeable products, smokeless products, and wine. The smokeable products segment, driven by Marlboro, continues to be the largest contributor to operating companies income, despite a slight decline in cigarette shipment volume. The smokeless products segment, featuring Copenhagen and Skoal, demonstrated growth in net revenues and operating companies income, partly due to price increases. The wine segment, primarily Ste. Michelle Wine Estates, experienced a decline in net revenues and operating companies income, attributed to competitive pressures and inventory adjustments. Financially, Altria demonstrated strong operating cash flow and maintained a solid credit rating. The company completed a $4.0 billion share repurchase program in early 2018 and authorized a new $1.0 billion program. Dividends paid to shareholders increased by 6.5% in 2017, reflecting the company's commitment to returning capital to investors. A significant event impacting net earnings was the enactment of the Tax Cuts and Jobs Act, which resulted in a substantial tax benefit in 2017. The company faces ongoing regulatory scrutiny and litigation risks inherent in the tobacco industry, but continues to navigate these challenges while focusing on innovation and strategic brand management.
Financial Highlights
53 data points| Revenue | $25.58B |
| Cost of Revenue | $7.54B |
| Gross Profit | $11.96B |
| R&D Expenses | $241.00M |
| Operating Income | $9.59B |
| Interest Expense | $736.00M |
| Net Income | $10.22B |
| EPS (Basic) | $5.31 |
| EPS (Diluted) | $5.31 |
| Shares Outstanding (Basic) | 1.92B |
| Shares Outstanding (Diluted) | 1.92B |
Key Highlights
- 1Altria's core smokeable products segment remained the largest contributor to operating income, despite a 5.1% decrease in cigarette shipment volume.
- 2Smokeless products segment saw net revenue and operating income growth, primarily driven by pricing actions, partially offset by unfavorable mix and lower shipment volume.
- 3The company's wine segment experienced a decline in net revenues and operating income due to competitive pressures and trade inventory reductions.
- 4Altria repurchased $2.9 billion of its common stock in 2017, completing a $4.0 billion program and initiating a new $1.0 billion repurchase program.
- 5Dividends paid to shareholders increased by 6.5% in 2017, with a quarterly dividend rate of $0.66 per share.
- 6The Tax Cuts and Jobs Act of 2017 significantly impacted the company's tax provision, resulting in a substantial net tax benefit for the year.
- 7Altria's investment in AB InBev represented a significant asset, with a carrying value of $17.952 billion at year-end 2017.