Summary
Altria Group, Inc. (MO) reported solid financial results for the nine months ended September 30, 2015, demonstrating growth in net earnings and diluted earnings per share. Net revenues increased primarily due to higher pricing and shipment volumes in the smokeable products segment, supported by gains in Marlboro's market share. The smokeless products segment also saw growth in operating income driven by pricing and increased retail share for Copenhagen and Skoal. The company highlighted a significant increase in net cash provided by operating activities compared to the prior year. Altria also continued its commitment to shareholder returns through increased dividends and share repurchases, completing its $1 billion July 2014 repurchase program and authorizing a new $1 billion program. Notably, the company repaid $1 billion in senior unsecured notes and completed a debt tender offer in the first quarter of 2015, reducing its overall debt. Investors should note the ongoing legal and regulatory challenges facing the tobacco industry, which Altria continues to manage. While the company reaffirmed its full-year adjusted diluted EPS growth forecast, it also acknowledged factors like a higher effective tax rate and potential moderating trade inventories that could impact the fourth quarter. The potential acquisition of SABMiller by AB InBev was also a significant development during the period.
Financial Highlights
49 data points| Revenue | $6.70B |
| Cost of Revenue | $1.93B |
| Gross Profit | $3.05B |
| Operating Income | $2.31B |
| Net Income | $1.53B |
| EPS (Basic) | $0.78 |
| Shares Outstanding (Basic) | 1.96B |
Key Highlights
- 1Net earnings attributable to Altria Group, Inc. increased by 4.2% to $3,994 million for the nine months ended September 30, 2015, compared to the same period in 2014.
- 2Diluted EPS increased by 5.2% to $2.03 for the nine months ended September 30, 2015.
- 3Net revenues increased by 4.7% to $19,116 million for the nine months ended September 30, 2015.
- 4The smokeable products segment showed strong performance with a 13.0% increase in operating companies income for the nine months, driven by higher pricing and shipment volume.
- 5The smokeless products segment's operating companies income grew by 3.2% for the nine months, aided by higher pricing and improved retail share for Copenhagen and Skoal.
- 6Altria repaid $1 billion in senior unsecured notes and completed a $793 million debt tender offer during the nine months, reducing overall debt.
- 7The company announced an 8.7% increase in its quarterly dividend rate to $0.565 per common share and continued its share repurchase program.