Early Access

10-QPeriod: Q3 FY2022

ALTRIA GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2022

Filed October 27, 2022For Securities:MO

Summary

Altria Group, Inc. reported a net earning of $3,074 million for the first nine months of 2022, a significant increase from $851 million in the same period of 2021. This improvement was largely driven by a substantial reduction in investment losses, particularly from its investment in Anheuser-Busch InBev (ABI), which saw a significant impairment charge in the prior year. However, the company's balance sheet reflects a substantial decline in its investment portfolio, with the total value of investments in equity securities decreasing from $13,481 million at the end of 2021 to $9,814 million by September 30, 2022. This decline is primarily attributable to a $2.5 billion impairment charge recognized on its ABI investment and a significant decrease in the fair value of its JUUL investment, which fell to $350 million from $1,705 million. Despite these headwinds in its investment portfolio, Altria's core tobacco business demonstrated resilience, with operating income for smokeable products increasing year-over-year, supported by higher pricing strategies.

Financial Highlights

50 data points
Beta

Revenue

$6.55B

0.6% Gross Margin

Net Income

$224.00M

0.0% Net Margin

EPS (Diluted)

$0.12

Total Assets

$33.95B

Cash & Equivalents

$2.48B

Free Cash Flow

$3.01B

Financial Statements
Beta
Revenue$6.55B
Cost of Revenue$1.72B
Gross Profit$3.70B
Operating Income$3.11B
Net Income$224.00M
EPS (Basic)$0.12
EPS (Diluted)$0.12
Shares Outstanding (Basic)1.80B
Shares Outstanding (Diluted)1.80B

Key Highlights

  • 1Net earnings attributable to Altria increased to $3,074 million for the first nine months of 2022, up from $851 million in the prior year period.
  • 2Total investments in equity securities decreased significantly from $13,481 million at December 31, 2021, to $9,814 million at September 30, 2022.
  • 3A substantial $2.5 billion impairment charge was recorded on the investment in Anheuser-Busch InBev (ABI) during the first nine months of 2022.
  • 4The fair value of the JUUL investment decreased substantially, ending the period at $350 million, down from $1,705 million at the end of 2021.
  • 5The company's smokeable products segment showed resilience, with Operating Companies Income (OCI) increasing by 2.7% for the nine-month period, driven by higher pricing.
  • 6Altria increased its quarterly dividend by 4.4% to $0.94 per share, with an annualized rate of $3.76.
  • 7Total debt decreased to $26.3 billion from $28.0 billion, reflecting debt repayments.

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