Summary
Altria Group, Inc. (MO) reported first-quarter 2024 results showing a 19.1% increase in net earnings to $2.13 billion, or $1.21 per diluted share, compared to the prior year. This growth was significantly boosted by a $165 million pre-tax gain from the partial sale of its Anheuser-Busch InBev (ABI) investment and a $71 million income tax benefit related to the release of a valuation allowance. Despite the reported earnings increase, adjusted net earnings decreased by 4.5% to $2.02 billion, or $1.15 per diluted share, primarily due to lower Operating Companies Income (OCI) from core operations. Net revenues declined 2.5% to $5.58 billion, driven by a 9.9% decrease in shipment volume from the smokeable products segment, although pricing actions helped offset some of this decline. The company continues to navigate a challenging operating environment characterized by macroeconomic pressures, evolving consumer preferences, and ongoing regulatory scrutiny. Altria completed a significant portion of its $2.4 billion Accelerated Share Repurchase (ASR) program in March 2024, repurchasing 46.5 million shares. The company maintains a strong liquidity position with $3.6 billion in cash and cash equivalents and a $3.0 billion revolving credit facility. Investors should note the ongoing strategic shift towards smoke-free products and the potential impacts of litigation and regulatory developments.
Financial Highlights
49 data points| Revenue | $5.58B |
| Cost of Revenue | $1.44B |
| Gross Profit | $3.28B |
| Operating Income | $2.67B |
| Net Income | $2.13B |
| EPS (Basic) | $1.21 |
| EPS (Diluted) | $1.21 |
| Shares Outstanding (Basic) | 1.76B |
| Shares Outstanding (Diluted) | 1.76B |
Key Highlights
- 1Reported net earnings increased 19.1% to $2.13 billion ($1.21/share) due to a gain on ABI investment sale and tax benefits.
- 2Adjusted net earnings decreased 4.5% to $2.02 billion ($1.15/share), driven by lower core operating income.
- 3Net revenues declined 2.5% to $5.58 billion, primarily due to a 9.9% decrease in shipment volume from the smokeable products segment.
- 4Completed $2.04 billion of the $2.4 billion ASR program, with final settlement expected by June 30, 2024.
- 5Maintained a strong liquidity position with $3.6 billion in cash and cash equivalents and significant credit facility availability.
- 6The oral tobacco products segment saw net revenue growth of 3.7% to $651 million, driven by pricing, though shipment volumes declined 3.1%.
- 7The company continues to emphasize its 'smoke-free future' vision amidst ongoing regulatory and economic challenges.