Summary
Altria Group, Inc. reported solid financial results for the second quarter and first half of 2021, demonstrating resilience amidst ongoing economic conditions. Net revenues saw a modest increase, driven by higher pricing across segments, particularly in smokeable and oral tobacco products, which helped offset slight volume declines in cigarettes. The company's strategic focus on smoke-free products, alongside its core tobacco business, continues to be a key driver of performance. Financially, Altria's profitability remained strong, with operating income and net earnings attributable to Altria showing positive year-over-year growth. This was supported by effective cost management and strategic investments in its smoke-free portfolio. The company also successfully managed its debt obligations, including issuing new notes and repaying existing debt, while maintaining a strong liquidity position and a robust share repurchase program. The planned divestiture of Ste. Michelle Wine Estates is proceeding as expected, which will further refine Altria's strategic focus on its core tobacco and reduced-risk product businesses.
Financial Highlights
49 data points| Revenue | $6.94B |
| Cost of Revenue | $1.88B |
| Gross Profit | $3.73B |
| Operating Income | $3.19B |
| Net Income | $2.15B |
| EPS (Basic) | $1.16 |
| EPS (Diluted) | $1.16 |
| Shares Outstanding (Basic) | 1.85B |
| Shares Outstanding (Diluted) | 1.85B |
Key Highlights
- 1Net revenues increased by 1.9% year-over-year for the first six months of 2021, reaching $12.97 billion, primarily due to higher pricing across all segments.
- 2Operating income grew by 14.5% to $5.88 billion for the first six months of 2021, benefiting from increased pricing and reduced cost of sales due to fewer large inventory-related charges compared to the prior year.
- 3Net earnings attributable to Altria increased by 2.2% to $3.57 billion for the first six months of 2021, resulting in diluted EPS of $1.93, up from $1.88 in the prior year.
- 4The company repurchased approximately 6.6 million shares for $650 million during the first six months of 2021 under its $2.0 billion share repurchase program.
- 5Altria's investment in ABI, while currently valued below its carrying value, was deemed to have a temporary decline in fair value, with no impairment recorded.
- 6The company has narrowed its 2021 full-year adjusted diluted EPS guidance to a range of $4.56 to $4.62, indicating expected growth.
- 7Altria is proceeding with the sale of its wine business, Ste. Michelle Wine Estates, for approximately $1.2 billion, expected to close in the second half of 2021.