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

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.