01—Abstract
Summary
Summary of the 10-Q filed April 27, 2023. Cited figures are marked; the original filing is the authoritative source.
Altria Group, Inc. (MO) reported a decrease in net revenue to $5.72 billiona for the first quarter of 2023, down from $5.89 billion in the prior year period, primarily due to lower sales in the smokeable products segment.
Net earnings also declined to $1.79 billionb, or $1.00 per diluted share, compared to $1.96 billion, or $1.08 per diluted share, in the first quarter of 2022. The company divested its JUUL equity securities in March 2023, resulting in a pre-tax loss of $250 million. Despite these declines, Altria continues to make progress on its "Moving Beyond Smoking" vision, notably through the definitive agreement to acquire NJOY Holdings, Inc., a U.S.-based e-vapor company, for approximately $2.75 billion.
The company's balance sheet remains robust, with total assets of $36.83 billionc as of March 31, 2023. Debt levels have decreased year-over-year, with total liabilities at $40.65 billion.
Altria also announced a new progressive dividend goal targeting mid-single-digit annual growth. The company reaffirmed its full-year adjusted diluted EPS guidance of $4.98 to $5.13d.
02—Key points
Key Highlights
- Net revenues decreased by 2.9% to $5.72 billion in Q1 2023 compared to Q1 2022.
- Net earnings decreased by 8.8% to $1.79 billion in Q1 2023, resulting in diluted EPS of $1.00, down from $1.08 in Q1 2022.
- Altria divested its JUUL equity securities in March 2023, incurring a pre-tax loss of $250 million.
- The company entered into a definitive agreement to acquire NJOY Holdings, Inc. for approximately $2.75 billion, subject to regulatory approval.
- Total debt decreased to $25.4 billion at March 31, 2023, from $26.7 billion at December 31, 2022.
- Altria announced a new progressive dividend goal targeting mid-single-digit annual growth.
- Full-year 2023 adjusted diluted EPS guidance remains in the range of $4.98 to $5.13.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2023, Altria Group, Inc. kept $0.31.
- Revenue$5.72B100.0%
- Cost of revenue−$2.39B41.8%
- Gross profit$3.33B58.2%
- Operating costs−$572.0M10.0%
- Operating income$2.76B48.2%
- Interest, other & tax−$970.0M17.0%
- Net income$1.79B31.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2023filed April 27, 2023Financial Statements
Q1 FY2023 against Q1 FY2022
| Line item | Q1 FY2023Q1 FY2022 | Change |
|---|---|---|
| Revenue | $5.72B$5.89B | −2.9% |
| Cost of Revenue | $1.43B$1.45B | −0.8% |
| Gross Profit | $3.33B$3.37B | −1.3% |
| Operating Income | $2.76B$2.88B | −4.4% |
| Net Income | $1.79B$1.96B | −8.8% |
| EPS (Basic) | $1.00$1.08 | −7.4% |
| EPS (Diluted) | $1.00$1.08 | −7.4% |
| Shares Outstanding (Basic) | 1.79B1.82B | −1.8% |
| Shares Outstanding (Diluted) | 1.79B1.82B | −1.8% |
05—Questions
Frequently Asked Questions
What were Altria's key financial results for the first quarter of 2023?
For the first quarter of 2023, Altria reported net revenues of $5.72 billion, a decrease of 2.9% compared to the prior year period. Net earnings were $1.79 billion, or $1.00 per diluted share, down from $1.96 billion, or $1.08 per diluted share, in the first quarter of 2022. The company also incurred a $250 million pre-tax loss related to the divestiture of its JUUL equity securities.
What is the status of Altria's acquisition of NJOY?
Altria entered into a definitive agreement to acquire NJOY Holdings, Inc., a U.S.-based e-vapor company, for approximately $2.75 billion in cash, plus up to an additional $500 million in contingent cash payments. The transaction is subject to customary closing conditions, including clearance from the U.S. Federal Trade Commission (FTC), with the current waiting period set to expire in May 2023.
How is Altria managing its debt and shareholder returns?
Altria's total debt decreased to $25.4 billion at March 31, 2023, from $26.7 billion at the end of 2022, following the repayment of $1.3 billion in Euro notes. The company also announced a new progressive dividend goal targeting mid-single-digit annual growth and continues to execute on its share repurchase programs.
What is Altria's outlook for the full year 2023?
Altria maintained its full-year 2023 adjusted diluted EPS guidance in the range of $4.98 to $5.13, representing a projected growth rate of 3% to 6% over 2022. This guidance accounts for various economic and consumer dynamics, as well as planned investments in its smoke-free future vision, but does not include the potential financial impacts of the NJOY acquisition.
06—Continue