Altria Group, Inc. (NYSE: MO) today reports our 2023
second-quarter and first-half business results and reaffirms our
guidance for 2023 full-year adjusted diluted earnings per share
(EPS).
“We had a solid first half of the year and we continue on our
exciting journey towards Moving Beyond Smoking,” said Billy
Gifford, Altria’s Chief Executive Officer. “We completed our
acquisition of NJOY and delivered strong business results, growing
adjusted diluted EPS by 5% in the first half. And we returned $3.8
billion to shareholders while investing in pursuit of our
Vision.”
“We look forward to executing our commercial plan for NJOY in
the second half of the year, and we reaffirm our guidance to
deliver 2023 full-year adjusted diluted EPS in a range of $4.89 to
$5.03. This range represents an adjusted diluted EPS growth rate of
1% to 4% from a $4.84 base in 2022.”
Altria Headline Financials1
($ in millions, except per share data)
Q2 2023
Change vs. Q2
2022
First Half 2023
Change vs. First Half
2022
Net revenues
$6,508
(0.5)%
$12,227
(1.7)%
Revenues net of excise taxes
$5,438
1.2%
$10,201
0.1%
Reported tax rate
24.6%
(19.9) pp
26.1%
(7.3) pp
Adjusted tax rate
24.7%
(0.1) pp
24.8%
(0.1) pp
Reported diluted EPS2
$1.19
100%+
$2.18
38.9%
Adjusted diluted EPS2
$1.31
4.0%
$2.50
5.0%
1 “Adjusted” financial measures presented in this release
exclude the impact of special items. See “Basis of Presentation”
for more information. 2 “EPS” represents diluted earnings per
share.
As previously announced, a conference call with the investment
community and news media will be webcast on August 1, 2023 at 9:00
a.m. Eastern Time. Access to the webcast is available at
www.altria.com/webcasts.
NJOY Transaction and Final Payment from Philip Morris
International Inc. (PMI)
- On June 1, 2023, we completed our acquisition of NJOY Holdings,
Inc. (NJOY Transaction), paying $2.75 billion in cash which we
funded through a combination of a $2 billion term loan, commercial
paper and available cash. We may also be obligated to pay up to
$500 million in additional cash payments that are contingent on
receipt of FDA authorizations with respect to certain NJOY
products.
- In July, we received final payment of approximately $1.8
billion (including interest) from PMI as part of our total $2.7
billion (plus interest) transition agreement for the IQOS Tobacco
Heating System®. The proceeds were subsequently applied to the full
repayment of the outstanding $2 billion term loan.
Cash Returns to Shareholders
- In the second quarter and first half, we repurchased 10.4
million shares at an average price of $45.37, for a total cost of
$472 million. As of June 30, 2023, we had $528 million remaining
under the current share repurchase program, which we expect to
complete by December 31, 2023. Share repurchases depend on
marketplace conditions and other factors, and the program remains
subject to the discretion of our Board of Directors (Board).
- We paid dividends of $1.7 billion and $3.4 billion in the
second quarter and first half, respectively. In March 2023, we
established a new progressive dividend goal that targets mid-single
digits dividend growth annually. Future dividend payments remain
subject to the discretion of our Board.
Macroeconomic Conditions Impacting Our Businesses
Impact on Tobacco Business Operations
- Our businesses were not materially impacted by increased costs
resulting from high inflation.
Impact on Adult Tobacco Consumers (ATCs)
- We believe the cumulative effect of high inflation over the
past several quarters impacted ATC behaviors, discretionary income
and spending. As a result, PM USA and the cigarette industry
experienced elevated volume declines, and we observed accelerated
share growth in the discount cigarettes segment. Despite these
factors, our leading tobacco brands remained resilient and we
continued to observe significant brand loyalty in the tobacco space
overall.
Environmental, Social and Governance
Our Corporate Responsibility Focus Areas are: (i) reduce the
harm of tobacco products, (ii) prevent underage use, (iii) protect
the environment, (iv) drive responsibility through our value chain,
(v) support our people and communities and (vi) engage and lead
responsibly. Our corporate responsibility reports are available on
the Responsibility section of www.altria.com.
- Most recently, we published the following responsibility
reports:
- 2022 Engage and Lead Responsibly Report;
- 2022 Prevent Underage Use Snapshot;
- 2022 Drive Responsibility Through Our Value Chain
Snapshot;
- 2022 Support Our People & Communities Snapshot; and
- 2022 Reduce Harm of Tobacco Products Snapshot.
- In June, we were recognized as one of the most community-minded
businesses by the national service organization, Points of Light,
in its 2022 Civic 50 recognition. This is our eleventh consecutive
year of recognition for our commitment to supporting communities
and advancing social causes.
- In July, we commenced an equity and civil rights assessment
(Assessment) in response to a 2022 shareholder proposal requesting
that we commission a civil rights equity audit. We are leading the
Assessment, which is being overseen by an external Advisory Review
Board. The review board consists of five independent members with
relevant expertise in fields such as civil rights, inclusion,
diversity and equity, legal, law enforcement, public policy, and
youth development. More information is available on the Investors
section of www.altria.com.
2023 Full-Year Guidance
We reaffirm our guidance to deliver 2023 full-year adjusted
diluted EPS in a range of $4.89 to $5.03, representing a growth
rate of 1% to 4% from an adjusted diluted EPS base of $4.84 in
2022. Our 2023 full-year adjusted diluted EPS guidance range
includes planned investments in support of our Vision, such as (i)
continued smoke-free product research, development and regulatory
preparation expenses, (ii) enhancement of our digital consumer
engagement system and (iii) marketplace activities in support of
our smoke-free products, including planned investments behind the
U.S. commercialization of NJOY ACE. Our guidance range also
includes estimated amortization charges of approximately $50
million related to intangible assets acquired in the NJOY
Transaction.
While the 2023 full-year adjusted diluted EPS guidance accounts
for a range of scenarios, the external environment remains dynamic.
We will continue to monitor conditions related to (i) the economy,
including the impact of high inflation, rising interest rates and
global supply chain disruptions, (ii) ATC dynamics, including
disposable income, purchasing patterns and adoption of smoke-free
products, and (iii) regulatory and legislative developments.
We continue to expect our 2023 full-year adjusted effective tax
rate to be in a range of 24.5% to 25.5% and our 2023 capital
expenditures to be between $175 million and $225 million. As a
result of the NJOY Transaction, we revised our estimate for 2023
depreciation and amortization expenses to be approximately $280
million.
Our full-year adjusted diluted EPS guidance range and full-year
forecast for our adjusted effective tax rate exclude the impact of
certain income and expense items that our management believes are
not part of underlying operations. These items may include, for
example, loss on early extinguishment of debt, restructuring
charges, asset impairment charges, acquisition and
disposition-related items, equity investment-related special items
(including any changes in fair value of our equity investment
recorded at fair value and any changes in the fair value of related
warrants and preemptive rights), certain income tax items, charges
associated with tobacco and health and certain other litigation
items, and resolutions of certain non-participating manufacturer
(NPM) adjustment disputes under the MSA (NPM Adjustment Items). See
Table 1 below for the income and expense items for the second
quarter of 2023.
Our management cannot estimate on a forward-looking basis the
impact of certain income and expense items, including those items
noted in the preceding paragraph, on our reported diluted EPS or
our effective tax rate because these items, which could be
significant, may be unusual or infrequent, are difficult to predict
and may be highly variable. As a result, we do not provide a
corresponding U.S. generally accepted accounting principles (GAAP)
measure for, or reconciliation to, our adjusted diluted EPS
guidance or our adjusted effective tax rate forecast.
ALTRIA GROUP, INC.
See “Basis of Presentation” below for an explanation of
financial measures and reporting segments discussed in this
release.
Financial Performance
Second Quarter
- Net revenues decreased 0.5% to $6.5 billion, primarily driven
by lower net revenues in the smokeable products segment. Revenues
net of excise taxes increased 1.2% to $5.4 billion.
- Reported diluted EPS increased 100%+ to $1.19, primarily driven
by 2022 charges related to our former investment in JUUL Labs Inc.
(JUUL) equity securities, favorable Cronos and ABI-related special
items, higher reported operating companies income (OCI) and fewer
shares outstanding, partially offset by higher tobacco and health
and certain other litigation items and acquisition costs related to
the NJOY Transaction.
- Adjusted diluted EPS increased 4.0% to $1.31, primarily driven
by higher adjusted OCI and fewer shares outstanding, partially
offset by lower net periodic benefit income.
First Half
- Net revenues decreased 1.7% to $12.2 billion, primarily driven
by lower net revenues in the smokeable products segment. Revenues
net of excise taxes was essentially unchanged at $10.2
billion.
- Reported diluted EPS increased 38.9% to $2.18, primarily driven
by lower charges related to our former investment in JUUL equity
securities, favorable Cronos-related special items, higher reported
earnings from our investment in ABI, fewer shares outstanding,
favorable interest expense and higher reported OCI. These drivers
were partially offset by higher tobacco and health and certain
other litigation items and acquisition costs related to the NJOY
Transaction.
- Adjusted diluted EPS increased 5.0% to $2.50, primarily driven
by higher adjusted OCI, fewer shares outstanding, higher adjusted
earnings from our investment in ABI and favorable interest expense,
partially offset by lower net periodic benefit income.
Table 1 - Altria’s Adjusted
Results
Second Quarter
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
Reported diluted EPS
$
1.19
$
0.49
100
%+
$
2.18
$
1.57
38.9
%
NPM Adjustment Items
—
—
—
(0.02
)
Tobacco and health and certain other
litigation items
0.12
0.02
0.17
0.02
Loss on disposition and changes in fair
value of JUUL equity securities
—
0.64
0.14
0.70
ABI-related special items
—
0.05
(0.01
)
0.02
Cronos-related special items
—
0.06
0.02
0.09
Adjusted diluted EPS
$
1.31
$
1.26
4.0
%
$
2.50
$
2.38
5.0
%
Note: For details of pre-tax, tax and after-tax amounts, see
Schedules 7 and 9.
Special Items
The EPS impact of the following special items is shown in Table
1 and Schedules 6, 7, 8 and 9.
NPM Adjustment Items
- In the first half of 2022, we recorded pre-tax income of $60
million (or $0.02 per share) for NPM Adjustments Items.
Tobacco and Health and Certain Other Litigation Items
- In the second quarter of 2023 and 2022, we recorded pre-tax
charges of $290 million (or $0.12 per share) and $46 million (or
$0.02 per share), respectively, for tobacco and health and certain
other litigation items and related interest costs. The 2023 charges
were primarily driven by our previously announced settlement of
JUUL-related litigation.
- In the first half of 2023 and 2022, we recorded pre-tax charges
of $401 million (or $0.17 per share) and $58 million (or $0.02 per
share), respectively, for tobacco and health and certain other
litigation items and related interest costs.
Loss on Disposition and Changes in Fair Value of JUUL Equity
Securities
As previously disclosed, we exchanged our entire minority
economic interest in JUUL for a non-exclusive, irrevocable global
license to certain of JUUL’s heated tobacco intellectual property
(2023 JUUL Transaction). We recorded non-cash, pre-tax losses from
investments in equity securities as a result of the 2023 JUUL
Transaction and changes in the estimated fair value of our former
investment in JUUL in 2022. Amounts consisted of the following:
Second Quarter
Six Months Ended June
30,
($ in millions, except per share
data)
2023
2022
2023
2022
(Income) losses from investments in equity
securities
$
—
$
1,155
$
250
$
1,255
Losses per share
$
—
$
0.64
$
0.14
$
0.70
We recorded corresponding adjustments to the JUUL tax valuation
allowance in 2023 and 2022.
ABI-Related Special Items
- In the second quarter and first half of 2022, equity earnings
from ABI included net pre-tax losses of $112 million (or $0.05 per
share) and $53 million (or $0.02 per share), respectively,
consisting primarily of ABI’s non-cash impairment charge related to
its investment in a joint venture with direct exposure to Russia
and Ukraine. The net pre-tax losses for the first half of 2022 were
partially offset by ABI’s net mark-to-market gains on certain ABI
financial instruments associated with its share commitments.
The ABI-related special items above include our respective share
of the amounts recorded by ABI and additional adjustments related
to (i) conversion from international financial reporting standards
to GAAP and (ii) adjustments to our investment required under the
equity method of accounting.
Cronos-Related Special Items
We recorded net pre-tax expense consisting of the following:
Second Quarter
Six Months Ended June
30,
($ in millions, except per share
data)
2023
2022
2023
2022
Loss on Cronos-related financial
instruments
$
—
$
4
$
—
$
14
(Income) losses from investments in equity
securities 1
4
110
30
161
Total Cronos-related special items -
(income) expense
$
4
$
114
$
30
$
175
Losses per share
$
—
$
0.06
$
0.02
$
0.09
1 Amounts include our share of special items recorded by Cronos
and additional adjustments, if required under the equity method of
accounting, related to our investment in Cronos including the $107
million non-cash pre-tax impairment of our investment in Cronos in
the second quarter of 2022.
We recorded corresponding adjustments to the Cronos tax
valuation allowance in 2023 and 2022 relating to the special
items.
SMOKEABLE PRODUCTS
Revenues and OCI
Second Quarter
- Net revenues decreased 0.9%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes increased 0.9%.
- Reported and adjusted OCI increased 3.0% and 3.1%,
respectively, primarily driven by higher pricing, partially offset
by lower shipment volume, higher promotional investments, higher
per unit settlement charges and higher costs. Adjusted OCI margins
increased by 1.3 percentage points to 60.4%.
First Half
- Net revenues decreased 2.0%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes decreased 0.2%.
- Reported OCI increased 0.5%, primarily driven by higher
pricing, partially offset by lower shipment volume, higher
promotional investments, higher per unit settlement charges, NPM
Adjustment Items in 2022 and higher costs.
- Adjusted OCI increased 1.7%, primarily driven by higher
pricing, partially offset by lower shipment volume, higher
promotional investments, higher per unit settlement charges and
higher costs. Adjusted OCI margins increased by 1.1 percentage
points to 60.4%.
Table 2 - Smokeable Products: Revenues
and OCI ($ in millions)
Second Quarter
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
Net revenues
$
5,820
$
5,873
(0.9
)%
$
10,910
$
11,138
(2.0
)%
Excise taxes
(1,041
)
(1,137
)
(1,969
)
(2,181
)
Revenues net of excise taxes
$
4,779
$
4,736
0.9
%
$
8,941
$
8,957
(0.2
)%
Reported OCI
$
2,846
$
2,762
3.0
%
$
5,349
$
5,321
0.5
%
NPM Adjustment Items
—
—
—
(60
)
Tobacco and health and certain other
litigation items
40
38
52
50
Adjusted OCI
$
2,886
$
2,800
3.1
%
$
5,401
$
5,311
1.7
%
Reported OCI margins 1
59.6
%
58.3
%
1.3 pp
59.8
%
59.4
%
0.4 pp
Adjusted OCI margins 1
60.4
%
59.1
%
1.3 pp
60.4
%
59.3
%
1.1 pp
1 Reported and adjusted OCI margins are calculated as reported
and adjusted OCI, respectively, divided by revenues net of excise
taxes.
Shipment Volume
Second Quarter
- Smokeable products segment reported domestic cigarette shipment
volume decreased 8.7%, primarily driven by the industry’s decline
rate and retail share losses (both of which were impacted by
macroeconomic pressures on ATC disposable income), partially offset
by trade inventory movements.
- When adjusted for trade inventory movements, smokeable products
segment domestic cigarette shipment volume decreased by an
estimated 10%.
- When adjusted for trade inventory movements and other factors,
total estimated domestic cigarette industry volume decreased by an
estimated 7.5%.
- Reported cigar shipment volume increased 7.6%.
First Half
- Smokeable products segment reported domestic cigarette shipment
volume decreased 10.0%, primarily driven by the industry’s decline
rate and retail share losses (both of which were impacted by
macroeconomic pressures on ATC disposable income), partially offset
by calendar differences.
- When adjusted for calendar differences and trade inventory
movements, smokeable products segment domestic cigarette shipment
volume decreased by an estimated 10.5%.
- When adjusted for trade inventory movements, calendar
differences and other factors, total estimated domestic cigarette
industry volume decreased by an estimated 8%.
- Reported cigar shipment volume increased 5.0%.
Table 3 - Smokeable Products: Reported
Shipment Volume (sticks in millions)
Second Quarter
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
Cigarettes:
Marlboro
18,506
20,035
(7.6
)%
34,902
38,325
(8.9
)%
Other premium
954
1,017
(6.2
)%
1,779
1,954
(9.0
)%
Discount
1,101
1,457
(24.4
)%
2,149
2,847
(24.5
)%
Total cigarettes
20,561
22,509
(8.7
)%
38,830
43,126
(10.0
)%
Cigars:
Black & Mild
465
432
7.6
%
908
865
5.0
%
Other
1
1
—
%
2
2
—
%
Total cigars
466
433
7.6
%
910
867
5.0
%
Total smokeable products
21,027
22,942
(8.3
)%
39,740
43,993
(9.7
)%
Note: Cigarettes volume includes units sold as well as
promotional units but excludes units sold for distribution to
Puerto Rico, U.S. Territories to overseas military and by Philip
Morris Duty Free Inc., none of which, individually or in the
aggregate, is material to our smokeable products segment.
Retail Share and Brand Activity
Second Quarter
- Marlboro retail share of the total cigarette category was
42.1%, a decrease of 0.6 share points versus the prior year,
primarily due to increased macroeconomic pressures on ATC
disposable income and increased competitive activity. Marlboro
retail share increased 0.1 share point from the first quarter of
2023. Additionally, Marlboro share of the premium segment was
58.6%, an increase of 0.5 share points versus the prior year and
0.1 share point sequentially.
- The cigarette industry discount retail share was 28.2%, an
increase of 1.8 share points versus the prior year primarily due to
the ATC factors mentioned above. Cigarette industry discount retail
share was unchanged from the first quarter of 2023.
First Half
- Marlboro retail share of the total cigarette category was
42.0%, a decrease of 0.7 share points versus the prior year
primarily due to increased macroeconomic pressures on ATC
disposable income and increased competitive activity.
- The cigarette industry discount retail share was 28.2%, an
increase of 1.8 share points versus the prior year due to the ATC
factors mentioned above.
Table 4 - Smokeable Products:
Cigarettes Retail Share (percent)
Second Quarter
Six Months Ended June
30,
2023
2022
Percentage point
change
2023
2022
Percentage point
change
Cigarettes:
Marlboro
42.1
%
42.7
%
(0.6
)
42.0
%
42.7
%
(0.7
)
Other premium
2.3
2.3
—
2.3
2.3
—
Discount
2.5
3.2
(0.7
)
2.7
3.2
(0.5
)
Total cigarettes
46.9
%
48.2
%
(1.3
)
47.0
%
48.2
%
(1.2
)
Note: Retail share results for cigarettes are based on data from
Circana, Inc. and Circana Group, L.P. (“Circana”) as well as, MSAi.
Circana is a newly formed company reflecting the recent merger of
IRI and NPD Group, Inc. Circana maintains a blended retail service
that uses a sample of stores and certain wholesale shipments to
project market share and depict share trends. Similar to prior
reporting, this service tracks sales in the food, drug, mass
merchandisers, convenience, military, dollar store and club trade
classes. For other trade classes selling cigarettes, retail share
is based on shipments from wholesalers to retailers through the
Store Tracking Analytical Reporting System (“STARS”), as provided
by MSAi. This service is not designed to capture sales through
other channels, including the internet, direct mail and some
illicitly tax-advantaged outlets. It is retail services’ standard
practice to periodically refresh their retail scan services, which
could restate retail share results that were previously released in
these services.
ORAL TOBACCO PRODUCTS
Revenues and OCI
Second Quarter
- Net revenues increased 2.3%, primarily driven by higher
pricing, partially offset by higher promotional investments, lower
shipment volume and a higher percentage of on! shipment volume
relative to MST versus the prior year (mix change). Revenues net of
excise taxes increased 2.8%.
- Reported and adjusted OCI increased 3.0%, primarily driven by
higher pricing, partially offset by mix change, higher promotional
investments and lower shipment volume. Adjusted OCI margins
increased by 0.1 percentage point to 68.0%.
First Half
- Net revenues increased 2.3%, primarily driven by higher
pricing, partially offset by lower shipment volume, higher
promotional investments and mix change. Revenues net of excise
taxes increased 2.8%.
- Reported and adjusted OCI increased 2.6%, primarily driven by
higher pricing, partially offset by mix change, higher promotional
investments and lower shipment volume. Adjusted OCI margins
declined by 0.1 percentage point to 68.7%.
Table 5 - Oral Tobacco Products:
Revenues and OCI ($ in millions)
Second Quarter
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
Net revenues
$
680
$
665
2.3
%
$
1,308
$
1,278
2.3
%
Excise taxes
(29
)
(32
)
(57
)
(61
)
Revenues net of excise taxes
$
651
$
633
2.8
%
$
1,251
$
1,217
2.8
%
Reported and adjusted OCI
$
443
$
430
3.0
%
$
859
$
837
2.6
%
Reported and adjusted OCI margins
1
68.0
%
67.9
%
0.1 pp
68.7
%
68.8
%
(0.1) pp
1 Reported and adjusted OCI margins are calculated as reported
and adjusted OCI, respectively, divided by revenues net of excise
taxes.
Shipment Volume
Second Quarter
- Oral tobacco products segment reported domestic shipment volume
decreased 1.7%, primarily driven by retail share losses, partially
offset by the industry’s growth rate, trade inventory movements and
calendar differences. When adjusted for trade inventory movements
and calendar differences, oral tobacco products segment shipment
volume decreased by an estimated 2.5%.
First Half
- Oral tobacco products segment reported domestic shipment volume
decreased 1.8%, primarily driven by retail share losses and other
factors, partially offset by the industry’s growth rate, calendar
differences and trade inventory movements. When adjusted for
calendar differences and trade inventory movements, oral tobacco
products segment shipment volume decreased by an estimated
2.5%.
- Total oral tobacco industry volume increased by an estimated
2.5% for the six months ended June 30, 2023, primarily driven by
growth in oral nicotine pouches, partially offset by declines in
MST volumes.
Table 6 - Oral Tobacco Products:
Reported Shipment Volume (cans and packs in millions)
Second Quarter
Six Months Ended June
30,
2023
2022
Change
2023
2022
Change
Copenhagen
114.9
123.1
(6.7
)%
223.9
238.3
(6.0
)%
Skoal
42.6
46.9
(9.2
)%
82.9
90.8
(8.7
)%
on!
30.0
20.3
47.8
%
55.2
38.6
43.0
%
Other
16.9
17.7
(4.5
)%
33.0
34.4
(4.1
)%
Total oral tobacco products
204.4
208.0
(1.7
)%
395.0
402.1
(1.8
)%
Note: Volume includes cans and packs sold, as well as
promotional units, but excludes international volume, which is
currently not material to our oral tobacco products segment. New
types of oral tobacco products, as well as new packaging
configurations of existing oral tobacco products, may or may not be
equivalent to existing MST products on a can-for-can basis. To
calculate volumes of cans and packs shipped, one pack of snus or
one can of oral nicotine pouches, irrespective of the number of
pouches in the pack, is assumed to be equivalent to one can of
MST.
Retail Share and Brand Activity
Second Quarter
- Oral tobacco products segment retail share was 44.0%, and
Copenhagen continued to be the leading oral tobacco brand with a
retail share of 24.3%. In the oral tobacco products segment, share
declines for MST products were primarily driven by the share growth
of oral nicotine pouches.
- Total U.S. oral tobacco category share for on! nicotine pouches
grew to 7.0%, an increase of 2.1 percentage points versus the prior
year. on! retail share increased 0.5 share points from the first
quarter of 2023.
- The U.S. nicotine pouch category grew to 29.1% of the U.S. oral
tobacco category, an increase of 8.4 share points versus the prior
year. In addition, on!’s share of the nicotine pouch category grew
to 24.0%, an increase of 2.1 share points versus the prior
year.
First Half
- Oral tobacco products segment retail share was 44.6%, and
Copenhagen continued to be the leading oral tobacco brand with a
retail share of 24.8%. In the oral tobacco products segment, share
declines for MST products were primarily driven by the share growth
of oral nicotine pouches.
- Total U.S. oral tobacco category share for on! nicotine pouches
grew to 6.7%, an increase of 2.2 percentage points.
Table 7 - Oral Tobacco Products: Retail
Share (percent)
Second Quarter
Six Months Ended June
30,
2023
2022
Percentage point
change
2023
2022
Percentage point
change
Copenhagen
24.3
%
27.3
%
(3.0
)
24.8
%
27.7
%
(2.9
)
Skoal
9.9
11.5
(1.6
)
10.1
11.6
(1.5
)
on!
7.0
4.9
2.1
6.7
4.5
2.2
Other
2.8
3.1
(0.3
)
3.0
3.1
(0.1
)
Total oral tobacco products
44.0
%
46.8
%
(2.8
)
44.6
%
46.9
%
(2.3
)
Note: Our oral tobacco products segment’s retail share results
exclude international volume. Retail share results for oral tobacco
products are based on data from Circana, a tracking service that
uses a sample of stores to project market share and depict share
trends. This service tracks sales in the food, drug, mass
merchandisers, convenience, military, dollar store and club trade
classes on the number of cans and packs sold. Oral tobacco products
are defined by Circana as moist smokeless, snus and oral nicotine
pouches. New types of oral tobacco products, as well as new
packaging configurations of existing oral tobacco products, may or
may not be equivalent to existing MST products on a can-for-can
basis. For example, one pack of snus or one can of oral nicotine
pouches, irrespective of the number of pouches in the pack, is
assumed to be equivalent to one can of MST. Because this service
represents retail share performance only in key trade channels, it
should not be considered a precise measurement of actual retail
share. It is retail services’ standard practice to periodically
refresh their retail scan services, which could restate retail
share results that were previously released in these services.
Altria’s Profile
We have a leading portfolio of tobacco products for U.S. tobacco
consumers age 21+. Our Vision is to responsibly lead the transition
of adult smokers to a smoke-free future (Vision). We are Moving
Beyond Smoking™, leading the way in moving adult smokers away from
cigarettes by taking action to transition millions to potentially
less harmful choices - believing it is a substantial opportunity
for adult tobacco consumers, our businesses and society.
Our wholly owned subsidiaries include leading manufacturers of
both combustible and smoke-free products. In combustibles, we own
Philip Morris USA Inc. (PM USA), the most profitable U.S. cigarette
manufacturer, and John Middleton Co. (Middleton), a leading U.S.
cigar manufacturer. Our smoke-free portfolio includes ownership of
U.S. Smokeless Tobacco Company LLC (USSTC), the leading global
moist smokeless tobacco (MST) manufacturer, Helix Innovations LLC
(Helix), a leading manufacturer of oral nicotine pouches, and NJOY,
LLC (NJOY), currently the only e-vapor manufacturer to receive
market authorizations from the U.S. Food and Drug Administration
(FDA) for a pod-based e-vapor product.
Additionally, we have a majority-owned joint venture, Horizon
Innovations LLC (Horizon), for the U.S. marketing and
commercialization of heated tobacco stick products and, through a
separate agreement, we have the exclusive U.S. commercialization
rights to the IQOS Tobacco Heating System® and Marlboro HeatSticks®
through April 2024.
Our equity investments include Anheuser-Busch InBev SA/NV (ABI),
the world’s largest brewer, and Cronos Group Inc. (Cronos), a
leading Canadian cannabinoid company.
The brand portfolios of our tobacco operating companies include
Marlboro®, Black & Mild®, Copenhagen®, Skoal®, on!® and NJOY®.
Trademarks and service marks related to Altria referenced in this
release are the property of Altria or our subsidiaries or are used
with permission.
Learn more about Altria at www.altria.com and follow us on Twitter, Facebook
and LinkedIn.
Basis of Presentation
We report our financial results in accordance with GAAP. Our
management reviews OCI, which is defined as operating income before
general corporate expenses and amortization of intangibles, to
evaluate the performance of, and allocate resources to, our
segments. Our management also reviews certain financial results,
including OCI, OCI margins and diluted EPS, on an adjusted basis,
which excludes certain income and expense items, including those
items noted under “2023 Full-Year Guidance.” Our management does
not view any of these special items to be part of our underlying
results as they may be highly variable, may be unusual or
infrequent, are difficult to predict and can distort underlying
business trends and results. Our management also reviews income tax
rates on an adjusted basis. Our adjusted effective tax rate may
exclude certain income tax items from our reported effective tax
rate. Our management believes that adjusted financial measures
provide useful additional insight into underlying business trends
and results, and provide a more meaningful comparison of
year-over-year results. Our management uses adjusted financial
measures for planning, forecasting and evaluating business and
financial performance, including allocating resources and
evaluating results relative to employee compensation targets. These
adjusted financial measures are not required by, or calculated in
accordance with, GAAP and may not be calculated the same as
similarly titled measures used by other companies. These adjusted
financial measures should thus be considered as supplemental in
nature and not considered in isolation or as a substitute for the
related financial information prepared in accordance with GAAP. We
provide reconciliations of historical adjusted financial measures
to corresponding GAAP measures in this release.
We use the equity method of accounting for our investment in ABI
and Cronos and report our share of ABI’s and Cronos’s results using
a one-quarter lag because ABI’s and Cronos’s results are not
available in time for us to record them in the concurrent period.
The one-quarter reporting lag for ABI and Cronos does not affect
our cash flows. We accounted for our former investment in the
equity securities of JUUL at fair value.
Our reportable segments are (i) smokeable products, including
combustible cigarettes and cigars manufactured and sold by PM USA
and Middleton, respectively, and (ii) oral tobacco products,
including MST and snus products manufactured and sold by USSTC, and
oral nicotine pouches sold by Helix. We have included results for
NJOY, Helix rest-of-world, the IQOS Tobacco Heating System® and
Philip Morris Capital Corporation (prior to the completion of its
wind-down at the end of 2022) in “All Other.” Comparisons are to
the corresponding prior-year period unless otherwise stated.
Forward-Looking and Cautionary Statements
This release contains projections of future results and other
forward-looking statements that are subject to a number of risks
and uncertainties and are made pursuant to the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of
1995.
Important factors that may cause actual results to differ
materially from those contained in the forward-looking statements
included in this release are described in our publicly filed
reports, including our Annual Report on Form 10-K for the year
ended December 31, 2022 and our Quarterly Reports on Form 10-Q.
These factors include the following:
- our inability to anticipate and respond to changes in adult
tobacco consumer preferences and purchase behavior;
- our inability to compete effectively;
- the growth of the e-vapor category and other innovative tobacco
products, including oral nicotine pouches, contributing to
reductions in cigarette and MST consumption levels and shipment
volume;
- our failure to commercialize innovative products, including
tobacco products that may reduce health risks relative to other
tobacco products and appeal to adult tobacco consumers;
- changes, including in macroeconomic and geopolitical conditions
(including inflation), that result in shifts in adult tobacco
consumer disposable income and purchasing behavior, including
choosing lower-priced and discount brands or products;
- unfavorable outcomes with respect to litigation proceedings or
any governmental investigations;
- the risks associated with significant federal, state and local
government actions, including U.S. Food and Drug Administration
(FDA) regulatory actions, and various private sector actions;
- increases in tobacco product-related taxes;
- our failure to complete or manage successfully strategic
transactions, including the NJOY Transaction and other
acquisitions, dispositions, joint ventures and investments in third
parties, or realize the anticipated benefits of such
transactions;
- significant changes in price, availability or quality of
tobacco, other raw materials or component parts, including as a
result of changes in macroeconomic, climate and geopolitical
conditions;
- our reliance on a few significant facilities and a small number
of key suppliers, distributors and distribution chain service
providers and the risks associated with an extended disruption at a
facility or in service by a supplier, distributor or distribution
chain service provider;
- the risk that we may be required to write down intangible
assets, including trademarks and goodwill, due to impairment;
- the risk that we could decide, or be required to, recall
products;
- the various risks related to health epidemics and pandemics,
such as the COVID-19 pandemic, and the measures that international,
federal, state and local governments, agencies, law enforcement and
health authorities implement to address them;
- our inability to attract and retain a highly skilled and
diverse workforce due to the decreasing social acceptance of
tobacco usage, tobacco control actions and other factors;
- the risks associated with the various U.S. and foreign laws and
regulations to which we are subject due to our international
business operations;
- the risks concerning a challenge to our tax positions, an
increase in the income tax rate or other changes to federal or
state tax laws;
- the risks associated with legal and regulatory requirements
related to climate change and other environmental sustainability
matters;
- disruption and uncertainty in the credit and capital markets,
including risk of losing access to these markets;
- a downgrade or potential downgrade of our credit ratings;
- our inability to attract investors due to increasing investor
expectations of our performance relating to environmental, social
and governance factors;
- the failure of our, or our key service providers’ or key
suppliers’, information systems to function as intended, or
cyber-attacks or security breaches;
- our failure to comply with personal data protection and privacy
laws;
- the risk that the expected benefits of our investment in ABI
may not materialize in the expected manner or timeframe or at all,
including due to macroeconomic and geopolitical conditions; foreign
currency exchange rates; ABI’s business results; ABI’s share price;
impairment losses on the value of our investment; our incurrence of
additional tax liabilities related to our investment in ABI; and
potential reductions in the number of directors that we can have
appointed to the ABI board of directors; and
- the risks associated with our investment in Cronos, including
legal, regulatory and reputational risks and the risk that the
expected benefits of the transaction may not materialize in the
expected timeframe or at all.
You should understand that it is not possible to predict or
identify all factors and risks. Consequently, you should not
consider the foregoing list complete. We do not undertake to update
any forward-looking statement that we may make from time to time
except as required by applicable law. All subsequent written and
oral forward-looking statements attributable to Altria or any
person acting on our behalf are expressly qualified in their
entirety by the cautionary statements referenced above.
Schedule 1
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of
Earnings
For the Quarters Ended June
30,
(dollars in millions, except per
share data)
(Unaudited)
2023
2022
% Change
Net revenues
$
6,508
$
6,543
(0.5
)%
Cost of sales 1
1,681
1,708
Excise taxes on products 1
1,070
1,169
Gross profit
3,757
3,666
2.5
%
Marketing, administration and research
costs
472
489
Operating companies income
3,285
3,177
3.4
%
Amortization of intangibles
27
18
General corporate expenses
353
54
Operating income
2,905
3,105
(6.4
)%
Interest and other debt expense, net
257
280
Net periodic benefit income, excluding
service cost
(31
)
(47
)
(Income) losses from investments in equity
securities 1
(127
)
1,263
Loss on Cronos-related financial
instruments
—
4
Earnings before income taxes
2,806
1,605
74.8
%
Provision for income taxes
689
714
Net earnings
$
2,117
$
891
100
%+
Per share data:
Diluted earnings per share
$
1.19
$
0.49
100
%+
Weighted-average diluted shares
outstanding
1,782
1,809
(1.5
)%
1 Cost of sales includes charges for
resolution expenses related to state settlement agreements and FDA
user fees. Supplemental information concerning those items, excise
taxes on products sold and (income) losses from investments in
equity securities is shown in Schedule 5.
Schedule 2
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data
For the Quarters Ended June
30,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2023
$
5,820
$
680
$
8
$
6,508
2022
5,873
665
5
6,543
% Change
(0.9
)%
2.3
%
60.0
%
(0.5
)%
Reconciliation:
For the quarter ended June 30,
2022
$
5,873
$
665
$
5
$
6,543
Operations
(53
)
15
3
(35
)
For the quarter ended June 30,
2023
$
5,820
$
680
$
8
$
6,508
Operating Companies Income
(Loss)
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2023
$
2,846
$
443
$
(4
)
$
3,285
2022
2,762
430
(15
)
3,177
% Change
3.0
%
3.0
%
73.3
%
3.4
%
Reconciliation:
For the quarter ended June 30,
2022
$
2,762
$
430
$
(15
)
$
3,177
Tobacco and health and certain other
litigation items - 2022
38
—
—
38
38
—
—
38
Tobacco and health and certain other
litigation items - 2023
(40
)
—
—
(40
)
(40
)
—
—
(40
)
Operations
86
13
11
110
For the quarter ended June 30,
2023
$
2,846
$
443
$
(4
)
$
3,285
Schedule 3
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of
Earnings
For the Six Months Ended June
30,
(dollars in millions, except per
share data)
(Unaudited)
2023
2022
% Change
Net revenues
$
12,227
$
12,435
(1.7
)%
Cost of sales 1
3,115
3,154
Excise taxes on products 1
2,026
2,242
Gross profit
7,086
7,039
0.7
%
Marketing, administration and research
costs
891
901
Operating companies income
6,195
6,138
0.9
%
Amortization of intangibles
45
35
General corporate expenses
488
114
Operating income
5,662
5,989
(5.5
)%
Interest and other debt expense, net
486
561
Net periodic benefit income, excluding
service cost
(62
)
(93
)
(Income) losses from investments in equity
securities 1
(47
)
1,229
Loss on Cronos-related financial
instruments
—
14
Earnings before income taxes
5,285
4,278
23.5
%
Provision for income taxes
1,381
1,428
Net earnings
$
3,904
$
2,850
37.0
%
Per share data2:
Diluted earnings per share
$
2.18
$
1.57
38.9
%
Weighted-average diluted shares
outstanding
1,784
1,813
(1.6
)%
1
Cost of sales includes charges
for resolution expenses related to state settlement agreements and
FDA user fees. Supplemental information concerning those items,
excise taxes on products sold and (income) losses from investments
in equity securities is shown in Schedule 5.
2
Diluted earnings per share are
computed independently for each period. Accordingly, the sum of the
quarterly earnings per share amounts may not agree to the
year-to-date amounts.
Schedule 4
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data
For the Six Months Ended June
30,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2023
$
10,910
$
1,308
$
9
$
12,227
2022
11,138
1,278
19
12,435
% Change
(2.0
)%
2.3
%
(52.6
)%
(1.7
)%
Reconciliation:
For the six months ended June 30,
2022
$
11,138
$
1,278
$
19
$
12,435
Operations
(228
)
30
(10
)
(208
)
For the six months ended June 30,
2023
$
10,910
$
1,308
$
9
$
12,227
Operating Companies Income
(Loss)
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2023
$
5,349
$
859
$
(13
)
$
6,195
2022
5,321
837
(20
)
6,138
% Change
0.5
%
2.6
%
35.0
%
0.9
%
Reconciliation:
For the six months ended June 30,
2022
$
5,321
$
837
$
(20
)
$
6,138
NPM Adjustment Items - 2022
(60
)
—
—
(60
)
Tobacco and health and certain other
litigation items - 2022
50
—
—
50
(10
)
—
—
(10
)
Tobacco and health and certain other
litigation items - 2023
(52
)
—
—
(52
)
(52
)
—
—
(52
)
Operations
90
22
7
119
For the six months ended June 30,
2023
$
5,349
$
859
$
(13
)
$
6,195
Schedule 5
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data
(dollars in millions)
(Unaudited)
For the Quarters
Ended June 30,
For the Six Months
Ended June 30,
2023
2022
2023
2022
The segment detail of excise taxes on
products sold is as follows:
Smokeable products
$
1,041
$
1,137
$
1,969
$
2,181
Oral tobacco products
29
32
57
61
$
1,070
$
1,169
$
2,026
$
2,242
The segment detail of charges for
resolution expenses related to state settlement agreements included
in cost of sales is as follows:
Smokeable products
$
1,017
$
1,054
$
1,911
$
1,933
Oral tobacco products
—
3
3
5
$
1,017
$
1,057
$
1,914
$
1,938
The segment detail of FDA user fees
included in cost of sales is as follows:
Smokeable products
$
67
$
69
$
130
$
137
Oral tobacco products
1
1
2
2
$
68
$
70
$
132
$
139
The detail of (income) losses from
investments in equity securities is as follows:
ABI
$
(135
)
$
(12
)
$
(340
)
$
(212
)
Cronos
8
120
43
186
JUUL
—
1,155
250
1,255
$
(127
)
$
1,263
$
(47
)
$
1,229
Schedule 6
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings
Per Share
For the Quarters Ended June
30,
(dollars in millions, except per
share data)
(Unaudited)
Net Earnings
Diluted EPS
2023 Net Earnings
$
2,117
$
1.19
2022 Net Earnings
$
891
$
0.49
% Change
100
%+
100
%+
Reconciliation:
2022 Net Earnings
$
891
$
0.49
2022 Acquisition and disposition-related
items
2
—
2022 Tobacco and health and certain other
litigation items
35
0.02
2022 JUUL changes in fair value
1,155
0.64
2022 ABI-related special items
89
0.05
2022 Cronos-related special items
106
0.06
2022 Income tax items
4
—
Subtotal 2022 special items
1,391
0.77
2023 Acquisition and disposition-related
items
(13
)
—
2023 Tobacco and health and certain other
litigation items
(217
)
(0.12
)
2023 ABI-related special items
2
—
2023 Cronos-related special items
(4
)
—
2023 Income tax items
3
—
Subtotal 2023 special items
(229
)
(0.12
)
Fewer shares outstanding
—
0.02
Change in tax rate
3
—
Operations
61
0.03
2023 Net Earnings
$
2,117
$
1.19
Schedule 7
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and
non-GAAP Measures
For the Quarters Ended June
30,
(dollars in millions, except per
share data)
(Unaudited)
Earnings
before Income
Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS
2023 Reported
$
2,806
$
689
$
2,117
$
1.19
Acquisition and disposition-related
items
18
5
13
—
Tobacco and health and certain other
litigation items
290
73
217
0.12
ABI-related special items
(3
)
(1
)
(2
)
—
Cronos-related special items
4
—
4
—
Income tax items
—
3
(3
)
—
2023 Adjusted for Special Items
$
3,115
$
769
$
2,346
$
1.31
2022 Reported
$
1,605
$
714
$
891
$
0.49
Acquisition and disposition-related
items
2
—
2
—
Tobacco and health and certain other
litigation items
46
11
35
0.02
JUUL changes in fair value
1,155
—
1,155
0.64
ABI-related special items
112
23
89
0.05
Cronos-related special items
114
8
106
0.06
Income tax items
—
(4
)
4
—
2022 Adjusted for Special Items
$
3,034
$
752
$
2,282
$
1.26
2023 Reported Net Earnings
$
2,117
$
1.19
2022 Reported Net Earnings
$
891
$
0.49
% Change
100
%+
100
%+
2023 Net Earnings Adjusted for Special
Items
$
2,346
$
1.31
2022 Net Earnings Adjusted for Special
Items
$
2,282
$
1.26
% Change
2.8
%
4.0
%
Schedule 8
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings
Per Share
For the Six Months Ended June
30,
(dollars in millions, except per
share data)
(Unaudited)
Net Earnings
Diluted EPS1
2023 Net Earnings
$
3,904
$
2.18
2022 Net Earnings
$
2,850
$
1.57
% Change
37.0
%
38.9
%
Reconciliation:
2022 Net Earnings
$
2,850
$
1.57
2022 NPM Adjustment Items
(45
)
(0.02
)
2022 Acquisition and disposition-related
items
7
—
2022 Tobacco and health and certain other
litigation items
44
0.02
2022 JUUL changes in fair value
1,255
0.70
2022 ABI-related special items
42
0.02
2022 Cronos-related special items
167
0.09
2022 Income tax items
9
—
Subtotal 2022 special items
1,479
0.81
2023 Acquisition and disposition-related
items
(1
)
—
2023 Tobacco and health and certain other
litigation items
(301
)
(0.17
)
2023 Loss on disposition of JUUL equity
securities
(250
)
(0.14
)
2023 ABI-related special items
22
0.01
2023 Cronos-related special items
(30
)
(0.02
)
Subtotal 2023 special items
(560
)
(0.32
)
Fewer shares outstanding
—
0.04
Change in tax rate
7
—
Operations
128
0.08
2023 Net Earnings
$
3,904
$
2.18
1
Diluted earnings per share are
computed independently for each period. Accordingly, the sum of the
quarterly earnings per share amounts may not agree to the
year-to-date amounts.
Schedule 9
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and
non-GAAP Measures
For the Six Months Ended June
30,
(dollars in millions, except per
share data)
(Unaudited)
Earnings
before
Income Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS1
2023 Reported
$
5,285
$
1,381
$
3,904
$
2.18
Acquisition and disposition-related
items
1
—
1
—
Tobacco and health and certain other
litigation items
401
100
301
0.17
Loss on disposition of JUUL equity
securities
250
—
250
0.14
ABI-related special items
(28
)
(6
)
(22
)
(0.01
)
Cronos-related special items
30
—
30
0.02
2023 Adjusted for Special Items
$
5,939
$
1,475
$
4,464
$
2.50
2022 Reported
$
4,278
$
1,428
$
2,850
$
1.57
NPM Adjustment Items
(60
)
(15
)
(45
)
(0.02
)
Acquisition and disposition-related
items
9
2
7
—
Tobacco and health and certain other
litigation items
58
14
44
0.02
JUUL changes in fair value
1,255
—
1,255
0.70
ABI-related special items
53
11
42
0.02
Cronos-related special items
175
8
167
0.09
Income tax items
—
(9
)
9
—
2022 Adjusted for Special Items
$
5,768
$
1,439
$
4,329
$
2.38
2023 Reported Net Earnings
$
3,904
$
2.18
2022 Reported Net Earnings
$
2,850
$
1.57
% Change
37.0
%
38.9
%
2023 Net Earnings Adjusted for Special
Items
$
4,464
$
2.50
2022 Net Earnings Adjusted for Special
Items
$
4,329
$
2.38
% Change
3.1
%
5.0
%
1
Diluted earnings per share are
computed independently for each period. Accordingly, the sum of the
quarterly earnings per share amounts may not agree to the
year-to-date amounts.
Schedule 10
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and
non-GAAP Measures
For the Year Ended December 31,
2022
(dollars in millions, except per
share data)
(Unaudited)
Earnings
before Income
Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS
2022 Reported
$
7,389
$
1,625
$
5,764
$
3.19
NPM Adjustment Items
(68
)
(17
)
(51
)
(0.03
)
Acquisition and disposition-related
items
11
2
9
—
Tobacco and health and certain other
litigation items
131
33
98
0.05
JUUL changes in fair value
1,455
—
1,455
0.81
ABI-related special items
2,544
534
2,010
1.12
Cronos-related special items
186
—
186
0.10
Income tax items
—
729
(729
)
(0.40
)
2022 Adjusted for Special Items
$
11,648
$
2,906
$
8,742
$
4.84
Schedule 11
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Balance
Sheets
(dollars in millions)
(Unaudited)
June 30, 2023
December 31, 2022
Assets
Cash and cash equivalents
$
874
$
4,030
Receivable from the sale of IQOS System
commercialization rights
1,772
1,721
Inventories
1,191
1,180
Other current assets
501
289
Property, plant and equipment, net
1,626
1,608
Goodwill and other intangible assets,
net
20,539
17,561
Investments in equity securities
9,643
9,600
Other long-term assets
1,005
965
Total assets
$
37,151
$
36,954
Liabilities and
Stockholders’ Equity (Deficit)
Short-term borrowings
$
2,000
$
—
Current portion of long-term debt
1,121
1,556
Accrued settlement charges
1,562
2,925
Deferred gain from the sale of IQOS System
commercialization rights (current)
2,700
—
Other current liabilities
4,281
4,135
Long-term debt
24,074
25,124
Deferred income taxes
2,646
2,897
Accrued pension costs
128
133
Accrued postretirement health care
costs
1,092
1,083
Deferred gain from the sale of IQOS System
commercialization rights (long-term)
—
2,700
Other long-term liabilities
1,324
324
Total liabilities
40,928
40,877
Total stockholders’ equity (deficit)
(3,827
)
(3,973
)
Noncontrolling interest
50
50
Total liabilities and stockholders’
equity (deficit)
$
37,151
$
36,954
Total debt
$
27,195
$
26,680
Schedule 12
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data for
Special Items
For the Quarters Ended June
30,
(dollars in millions)
(Unaudited)
Marketing,
administration
and research
costs
General
corporate
expenses
Interest and
other debt
(income)
expense, net
(Income) losses
from
investments in
equity securities
Loss on
Cronos-related
financial
instruments
2023 Special Items - (Income)
Expense
Acquisition and disposition-related
items
$
—
$
41
$
(23
)
$
—
$
—
Tobacco and health and certain other
litigation items
40
240
10
—
—
ABI-related special items
—
—
—
(3
)
—
Cronos-related special items
—
—
—
4
—
2022 Special Items - (Income)
Expense
Acquisition and disposition-related
items
$
—
$
2
$
—
$
—
$
—
Tobacco and health and certain other
litigation items
38
7
1
—
—
JUUL changes in fair value
—
—
—
1,155
—
ABI-related special items
—
—
—
112
—
Cronos-related special items
—
—
—
110
4
Note: This schedule is intended to provide supplemental
financial data for certain income and expense items that management
believes are not part of underlying operations and their
presentation in Altria’s consolidated statements of earnings. This
schedule is not intended to provide, or reconcile, non-GAAP
financial measures.
Schedule 13
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data for
Special Items
For the Six Months Ended June
30,
(dollars in millions)
(Unaudited)
Cost of
Sales
Marketing,
administration
and research
costs
General
corporate
expenses
Interest and
other debt
(income)
expense, net
(Income) losses
from
investments in
equity securities
Loss on
Cronos-related
financial
instruments
2023 Special Items - (Income)
Expense
Acquisition and disposition-related
items
$
—
$
—
$
44
$
(43
)
$
—
$
—
Tobacco and health and certain other
litigation items
—
52
338
11
—
—
Loss on disposition of JUUL equity
securities
—
—
—
—
250
—
ABI-related special items
—
—
—
—
(28
)
—
Cronos-related special items
—
—
—
—
30
—
2022 Special Items - (Income)
Expense
NPM Adjustment Items
$
(60
)
$
—
$
—
$
—
$
—
$
—
Acquisition and disposition-related
items
—
—
9
—
—
—
Tobacco and health and certain other
litigation items
—
50
7
1
—
—
JUUL changes in fair value
—
—
—
—
1,255
—
ABI-related special items
—
—
—
—
53
—
Cronos-related special items
—
—
—
—
161
14
Note: This schedule is intended to provide supplemental
financial data for certain income and expense items that management
believes are not part of underlying operations and their
presentation in our consolidated statements of earnings (losses).
This schedule is not intended to provide, or reconcile, non-GAAP
financial measures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230731187350/en/
Altria Group, Inc. Mac Livingston, Vice President of Investor
Relations Richard.M.Livingston@altria.com
Altria Client Services Investor Relations 804-484-8222
Altria Client Services Media Relations 804-484-8897
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