ALTRIA GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2021

Summary

Altria Group, Inc. reported a net loss of $2.72 billion, or $(1.48) per diluted share, for the third quarter of 2021. This significant loss was primarily driven by a substantial non-cash impairment charge of $6.2 billion related to its equity investment in Anheuser-Busch InBev (ABI). Excluding this and other special items, adjusted diluted earnings per share were $1.22, up from $1.19 in the prior year's quarter, indicating operational resilience. The company's core smokeable products segment showed stable performance, with OCI increasing slightly year-over-year on a reported basis, supported by pricing actions offsetting lower shipment volumes. The oral tobacco products segment experienced a decline in OCI, impacted by shifts in product mix and increased costs. Altria also announced a $1.5 billion expansion of its share repurchase program and reaffirmed its commitment to its dividend, reflecting confidence in its financial stability despite the significant impact of the ABI impairment charge.

Key Highlights

• 1Reported a net loss of $2.72 billion for Q3 2021, significantly impacted by a $6.2 billion impairment charge on the ABI investment.
• 2Adjusted diluted EPS was $1.22, up 2.5% year-over-year, indicating underlying operational strength.
• 3Smokeable products segment reported OCI increased 3.8% year-over-year, driven by pricing actions offsetting shipment volume declines.
• 4Oral tobacco products segment OCI decreased 7.1% year-over-year due to unfavorable product mix and higher costs.
• 5The company sold its wine business (Ste. Michelle) for approximately $1.2 billion, completing the transaction on October 1, 2021.
• 6Altria increased its quarterly dividend rate by 4.7% to $0.90 per share.
• 7The share repurchase program was expanded by $1.5 billion, with $1.03 billion remaining as of September 30, 2021.

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