ALTRIA GROUP, INC. Quarterly Report for Q1 Ended Mar 31, 2023

Summary

Altria Group, Inc. (MO) reported a decrease in net revenue to $5.72 billion 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 billion, 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 billion 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 $5.13.

Key Highlights

• 1Net revenues decreased by 2.9% to $5.72 billion in Q1 2023 compared to Q1 2022.
• 2Net 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.
• 3Altria divested its JUUL equity securities in March 2023, incurring a pre-tax loss of $250 million.
• 4The company entered into a definitive agreement to acquire NJOY Holdings, Inc. for approximately $2.75 billion, subject to regulatory approval.
• 5Total debt decreased to $25.4 billion at March 31, 2023, from $26.7 billion at December 31, 2022.
• 6Altria announced a new progressive dividend goal targeting mid-single-digit annual growth.
• 7Full-year 2023 adjusted diluted EPS guidance remains in the range of $4.98 to $5.13.

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