Summary
Altria Group, Inc. reported solid financial performance in 2022, with reported net earnings attributable to Altria of $5.8 billion, up from $2.5 billion in 2021. Adjusted net earnings attributable to Altria increased by 2.6% to $8.7 billion, and adjusted diluted EPS grew by 5.0% to $4.84. This growth was driven by higher operating income in the smokeable products segment and improved pricing, partially offset by ongoing shifts in adult tobacco consumer preferences and macroeconomic pressures. The company continues its "Moving Beyond SmokingTM" strategy, aiming to transition adult smokers to smoke-free products by 2030, underscored by its investments in smoke-free innovation and partnerships. Despite a decline in cigarette shipment volumes, Altria managed to offset this through effective pricing strategies and cost management. The oral tobacco products segment experienced a slight net revenue decrease, impacted by lower shipment volumes, though the "on!" oral nicotine pouch brand showed significant growth within its category. The company also highlighted significant non-cash charges related to its equity investments, particularly a $2.5 billion impairment charge for its investment in Anheuser-Busch InBev (ABI) and unrealized losses of $1.5 billion for its investment in JUUL. Altria remains committed to returning value to shareholders through dividends and share repurchases, with a new $1 billion share repurchase program authorized.
Financial Highlights
53 data points| Revenue | $25.10B |
| Cost of Revenue | $6.44B |
| Gross Profit | $14.25B |
| R&D Expenses | $162.00M |
| Operating Income | $11.92B |
| Interest Expense | $1.13B |
| Net Income | $5.76B |
| EPS (Basic) | $3.19 |
| EPS (Diluted) | $3.19 |
| Shares Outstanding (Basic) | 1.80B |
| Shares Outstanding (Diluted) | 1.80B |
Key Highlights
- 1Reported net earnings attributable to Altria increased by over 100% to $5.8 billion in 2022, driven by favorable equity investment adjustments and operational improvements.
- 2Adjusted net earnings attributable to Altria increased by 2.6% to $8.7 billion, with adjusted diluted EPS growing by 5.0% to $4.84, reflecting successful pricing strategies.
- 3Smokeable products segment reported OCI increased by 2.8% to $10.7 billion, driven by higher pricing and lower promotional investments, despite a 9.7% decrease in cigarette shipment volume.
- 4Oral tobacco products segment saw a 1.1% decrease in net revenues to $2.6 billion, impacted by lower shipment volumes, though the "on!" oral nicotine pouch brand gained significant market share.
- 5Altria recorded significant impairments and unrealized losses on its equity investments, including a $2.5 billion non-cash impairment for ABI and $1.5 billion in unrealized losses for JUUL.
- 6The company completed its $3.5 billion share repurchase program in December 2022 and authorized a new $1 billion program for 2023, demonstrating a commitment to shareholder returns.
- 7Altria continues to advance its "Moving Beyond SmokingTM" vision with strategic initiatives like its heated tobacco stick joint venture with Japan Tobacco and its agreement to transition IQOS commercialization rights to PMI.