Summary
Altria Group, Inc.'s second-quarter 2013 report shows a solid performance driven by its core tobacco segments. For the six months ended June 30, 2013, net earnings attributable to Altria Group, Inc. increased by 9.5% to $2,651 million, and diluted EPS grew by 10.9% to $1.32, driven by higher operating income from smokeable and smokeless products, partially offset by lower earnings from its SABMiller investment. The company also benefited from a significant NPM Adjustment Settlement, contributing $519 million to cost of sales reduction. Operating income was further supported by higher pricing across its product categories and a reduction in marketing, administration, and research costs. The company continued its commitment to shareholder returns through dividends and share repurchases, with $1.769 billion paid in dividends and $192 million used for share repurchases during the first half of the year. The company also announced a new $300 million share repurchase program in April 2013. Despite ongoing industry challenges such as regulatory scrutiny and declining cigarette volumes, Altria demonstrated resilience through strategic pricing and operational efficiencies, positioning it to meet its full-year EPS guidance.
Financial Highlights
48 data points| Revenue | $6.30B |
| Cost of Revenue | $1.97B |
| Gross Profit | $2.55B |
| Operating Income | $2.00B |
| Net Income | $1.27B |
| EPS (Basic) | $0.63 |
| Shares Outstanding (Basic) | 2.00B |
Key Highlights
- 1Net earnings attributable to Altria Group, Inc. increased by 9.5% to $2,651 million for the six months ended June 30, 2013, compared to the same period in 2012.
- 2Diluted EPS attributable to Altria Group, Inc. rose by 10.9% to $1.32 for the six months ended June 30, 2013.
- 3The company received a significant benefit of $519 million from the NPM Adjustment Settlement, which reduced cost of sales and boosted operating companies income in the smokeable products segment.
- 4Operating income increased by 18.0% for the six months ended June 30, 2013, driven by strong performance in the smokeable and smokeless products segments, as well as lower interest expenses.
- 5Altria continued to return capital to shareholders, paying $1.769 billion in dividends and repurchasing $192 million worth of shares during the first six months of 2013.
- 6The smokeable products segment saw a 0.4 percentage point increase in cigarette retail share for the first half of 2013, with Marlboro maintaining a strong presence.
- 7The smokeless products segment experienced growth in both shipment volume and retail share for Copenhagen and Skoal combined, contributing to a 5.4% increase in shipment volume for the first half of 2013.