10-KPeriod: FY2024

ALTRIA GROUP, INC. Annual Report, Year Ended Dec 31, 2024

Filed February 26, 2025For Securities:MO

Summary

Altria Group, Inc. reported robust financial performance for the fiscal year ending December 31, 2024, with reported net earnings of $11.26 billion, a significant increase from $8.13 billion in the prior year. This growth was driven by substantial gains from the sale of the IQOS System commercialization rights, favorable tax items, and positive contributions from equity investments, which largely offset a decrease in operating income. The company's "Moving Beyond Smoking" strategy continues to guide its transition towards smoke-free products. Despite a 10.2% decline in cigarette shipment volume for PM USA and a 1.5% decline in cigar shipments, Altria demonstrated pricing power and cost management, with adjusted diluted EPS increasing by 3.4% year-over-year. The company also advanced its commitment to returning capital to shareholders through substantial share repurchases and a progressive dividend policy. The company faces ongoing challenges including evolving consumer preferences, the proliferation of illicit flavored e-vapor products, and a dynamic regulatory landscape. However, Altria remains focused on its long-term goals, including growing its U.S. smoke-free portfolio and exploring opportunities in new categories. The acquisition of NJOY has been integrated, and while it incurred net pre-tax expenses related to the transaction, it represents a strategic step in expanding Altria's e-vapor offerings. The company's financial position remains solid, supported by substantial cash and cash equivalents and credit facilities, enabling continued investment in its strategic priorities and shareholder returns.

Financial Highlights

51 data points
Beta

Revenue

$24.02B

59.8% Gross Margin

Net Income

$11.26B

46.9% Net Margin

EPS (Diluted)

$6.54

Total Assets

$35.18B

Cash & Equivalents

$3.16B

Free Cash Flow

$8.61B

Financial Statements
Beta
Revenue$24.02B
Cost of Revenue$6.08B
Gross Profit$14.37B
R&D Expenses$208.00M
Operating Income$11.24B
Net Income$11.26B
EPS (Basic)$6.54
EPS (Diluted)$6.54
Shares Outstanding (Basic)1.72B
Shares Outstanding (Diluted)1.72B

Key Highlights

  • 1Altria reported a significant increase in reported net earnings to $11.26 billion for the fiscal year 2024, up from $8.13 billion in 2023, largely due to a $2.7 billion pre-tax gain from the sale of IQOS System commercialization rights.
  • 2Adjusted diluted EPS saw a modest increase of 3.4% to $5.12 in 2024, demonstrating resilience despite a challenging operating environment.
  • 3The company completed its $3.4 billion share repurchase program in December 2024 and authorized a new $1.0 billion program for 2025, underscoring its commitment to shareholder returns.
  • 4Cigarette shipment volumes declined by 10.2% for PM USA, reflecting industry-wide volume declines and consumer shifts, but pricing actions helped offset some of this impact.
  • 5The oral tobacco products segment saw net revenue increase by 4.1% and adjusted OCI grow by 5.2%, driven by higher pricing, though volumes declined slightly.
  • 6Altria is actively managing its investment portfolio, having completed the sale of a portion of its Anheuser-Busch InBev (ABI) investment and continuing to account for its investment in Cronos Group under the equity method.
  • 7The company is facing significant headwinds in the e-vapor category due to the proliferation of illicit flavored disposable e-vapor products, which have impacted NJOY's performance and led to an impairment assessment of related goodwill and intangible assets.

Frequently Asked Questions

Altria reported net earnings of $11.26 billion for the fiscal year 2024, a substantial increase from $8.13 billion in 2023. This growth was primarily driven by a significant pre-tax gain of $2.7 billion from the sale of IQOS System commercialization rights, favorable income tax items, and positive contributions from its equity investments, which helped to offset a decline in operating income.

Altria continues to navigate declining cigarette volumes by focusing on its 'Moving Beyond Smoking' strategy, aiming to transition adult smokers to smoke-free alternatives. While cigarette shipment volumes declined by 10.2% for PM USA, the company implemented pricing strategies to help mitigate these declines. Its investments in smoke-free categories, such as NJOY (e-vapor) and oral nicotine pouches (on!), are key components of this transition, although the e-vapor segment faces challenges from illicit products.

Altria demonstrated a strong commitment to shareholder returns in 2024. The company completed its $3.4 billion share repurchase program and, in January 2025, authorized a new $1.0 billion program. Furthermore, Altria maintains a progressive dividend goal, targeting mid-single-digit dividend per share growth annually through 2028, reflecting its confidence in generating consistent cash flows.

Altria faces several significant challenges, including evolving adult tobacco consumer preferences, intense competition, increasing federal, state, and local excise taxes, and a dynamic regulatory environment, particularly from the FDA. A major concern highlighted is the proliferation of illicit flavored disposable e-vapor products, which negatively impacts the legitimate e-vapor market and has led to reassessments of the company's smoke-free goals. Additionally, litigation and potential adverse outcomes remain a persistent risk.