Altria Group, Inc. (NYSE: MO) today reports our 2023
third-quarter and nine-months business results and narrows our
guidance for 2023 full-year adjusted diluted earnings per share
(EPS).
“Our highly profitable traditional tobacco businesses were
resilient in a dynamic operating environment during the third
quarter and first nine months, providing fuel for our business
transformation and significant cash returns to our shareholders,”
said Billy Gifford, Altria’s Chief Executive Officer. “I believe we
have the appropriate strategies and people in place to execute our
growth plans. I continue to believe that we can achieve our Vision
and create long-term value for our shareholders.”
“We are narrowing our full-year 2023 guidance and now expect to
deliver adjusted diluted EPS in a range of $4.91 to $4.98. This
range represents an adjusted diluted EPS growth rate of 1.5% to 3%
from a base of $4.84 in 2022.”
Altria Headline Financials1
($ in millions, except per share data)
Q3 2023
Change vs. Q3
2022
Q3 YTD 2023
Change vs. Q3 YTD
2022
Net revenues
$6,281
(4.1)%
$18,508
(2.5)%
Revenues net of excise taxes
$5,277
(2.5)%
$15,478
(0.8)%
Reported tax rate
25.5%
(19.5) pp
25.9%
(8.5) pp
Adjusted tax rate
24.4%
(0.5) pp
24.7%
(0.2) pp
Reported diluted EPS2
$1.22
100%+
$3.40
100%+
Adjusted diluted EPS2
$1.28
—%
$3.78
3.3%
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 October 26, 2023 at
9:00 a.m. Eastern Time. Access to the webcast is available at
www.altria.com/webcasts.
NJOY
Business Update
On June 1, 2023, we completed our acquisition of NJOY Holdings,
Inc. (NJOY Transaction). Our teams executed NJOY’s business plans
with speed and focus during our first full quarter of ownership.
NJOY is responsibly and sustainably growing the business. Our
efforts are concentrated on the following:
- We strengthened NJOY’s global supply chain to provide
sustainable support for the anticipated volume increase associated
with our NJOY ACE (ACE) expansion plans. We do not anticipate
capacity constraints as we execute our initial expansion plans. In
addition, we are filling inventory gaps at retail and expanding
distribution of ACE. We continue to expect ACE distribution to
reach a total of 70,000 stores by year-end, representing
approximately 70% of e-vapor volume and 55% of cigarette volume
sold in the U.S. multi-outlet and convenience channel;
- Generating awareness of ACE by amplifying visibility and
establishing disruptive positioning at retail; and
- Refining our understanding of adult vapers to inform our
consumer engagement strategies.
Business Results
For the third quarter:
- Reported shipment volume of ACE was approximately 7.5 million
pods.
- The retail share of ACE pods in U.S. multi-outlet and
convenience stores was essentially unchanged since the completion
of the NJOY Transaction.
Cash Returns to Shareholders
Share Repurchase Program
- In the third quarter, we repurchased 5.9 million shares at an
average price of $44.26, for a total cost of $260 million. Through
the first nine months, we repurchased 16.3 million shares at an
average price of $44.97, for a total cost of $732 million.
- As of September 30, 2023, we had $268 million remaining under
our 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).
Dividends
- We paid dividends of $1.6 billion and $5.0 billion in the third
quarter and first nine months, respectively.
- In August, our Board increased our regular quarterly dividend
by 4.3%, for the 58th increase in the past 54 years. Our current
annualized dividend rate is $3.92 per share, representing a
dividend yield of 9.2% as of October 24, 2023.
- We maintain our progressive dividend goal that targets
mid-single digits dividend per share growth annually. Future
dividend payments remain subject to the discretion of our
Board.
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.
- We recently published our 2022 Protect the Environment
Snapshot. We are pleased to report that we are on track to meet all
of our 2030 environmental targets by the end of 2023. We are now in
the process of setting new environmental targets, which we expect
to share early next year.
- We ranked #6 on Fortune and Great Place to Work’s® list of Best
Workplaces in Manufacturing and Production™ for 2023. This was our
third consecutive appearance on Fortune and Great Place to Work’s®
list.
- We received a top score of 100 on the Disability Equality Index
- Best Place to Work for Disability Inclusion by Disability:IN
American Association of People with Disabilities.
2023 Full-Year Guidance
We narrow our guidance for 2023 full-year adjusted diluted EPS
to be in a range of $4.91 to $4.98, representing a growth rate of
1.5% to 3% 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 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) adult tobacco consumer (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 previously 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, disposition and
integration-related items, equity investment-related special items
(including any changes in fair value of our equity investment
recorded at fair value, 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 first nine
months 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
Third Quarter
- Net revenues decreased 4.1% to $6.3 billion, primarily driven
by lower net revenues in the smokeable products segment. Revenues
net of excise taxes decreased 2.5% to $5.3 billion.
- Reported diluted EPS increased 100%+ to $1.22, primarily driven
by our impairment of our investment in ABI in 2022 and 2022 charges
related to our former investment in JUUL Labs, Inc. (JUUL) equity
securities, partially offset by unfavorable income tax items.
- Adjusted diluted EPS was unchanged at $1.28, as lower adjusted
OCI was offset by fewer shares outstanding.
First Nine Months
- Net revenues decreased 2.5% to $18.5 billion, primarily driven
by lower net revenues in the smokeable products segment. Revenues
net of excise taxes decreased 0.8% to $15.5 billion.
- Reported diluted EPS increased 100%+ to $3.40, primarily driven
by favorable reported results from our investment in ABI (due
primarily to our impairment of our investment in ABI in 2022),
lower charges related to our former investment in JUUL equity
securities, favorable Cronos-related special items, fewer shares
outstanding, higher reported OCI and favorable interest expense.
These drivers were partially offset by higher tobacco and health
and certain other litigation items, unfavorable income tax items,
lower net periodic benefit income and acquisition costs related to
the NJOY Transaction.
- Adjusted diluted EPS increased 3.3% to $3.78, primarily driven
by fewer shares outstanding, higher adjusted OCI, higher adjusted
earnings from our equity investments and favorable interest
expense, partially offset by lower net periodic benefit income and
higher amortization due to the NJOY Transaction.
Table 1 - Altria’s Adjusted
Results
Third Quarter
Nine Months Ended September
30,
2023
2022
Change
2023
2022
Change
Reported diluted EPS
$
1.22
$
0.12
100
%+
$
3.40
$
1.69
100
%+
NPM Adjustment Items
—
—
—
(0.02
)
Tobacco and health and certain other
litigation items
0.01
0.02
0.18
0.04
Loss on disposition and changes in fair
value of JUUL equity securities
—
0.06
0.14
0.76
ABI-related special items
0.03
1.10
0.02
1.12
Cronos-related special items
—
—
0.02
0.09
Income tax items
0.02
(0.02
)
0.02
(0.02
)
Adjusted diluted EPS
$
1.28
$
1.28
—
%
$
3.78
$
3.66
3.3
%
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 nine months of 2022, we recorded pre-tax income of
$60 million (or $0.02 per share) for NPM Adjustment Items.
Tobacco and Health and Certain Other Litigation Items
- In the third quarter and first nine months of 2023, we recorded
pre-tax charges of $23 million (or $0.01 per share) and $424
million (or $0.18 per share), respectively, for tobacco and health
and certain other litigation items and related interest costs. The
charges for the first nine months include the settlement of
JUUL-related litigation.
- In the third quarter and first nine months of 2022, we recorded
pre-tax charges of $43 million (or $0.02 per share) and $101
million (or $0.04 per share), respectively, for tobacco and health
and certain other litigation items and related interest costs.
Loss on Disposition and Changes in Fair Value of JUUL Equity
Securities
As previously disclosed, we exchanged our entire minority
economic interest in JUUL for a non-exclusive, irrevocable global
license to certain of JUUL’s heated tobacco intellectual property
(2023 JUUL Transaction). We recorded non-cash, pre-tax losses from
investments in equity securities as a result of the 2023 JUUL
Transaction and, in 2022, changes in the estimated fair value of
our former investment in JUUL. Amounts consisted of the
following:
Third Quarter
Nine Months Ended September
30,
($ in millions, except per share
data)
2023
2022
2023
2022
(Income) losses from investments in equity
securities
$
—
$
100
$
250
$
1,355
Losses per share
$
—
$
0.06
$
0.14
$
0.76
We recorded corresponding adjustments to the JUUL tax valuation
allowance in 2023 and 2022.
ABI-Related Special Items
- In the third quarter and first nine months of 2023, equity
earnings from ABI included net pre-tax losses of $82 million (or
$0.03 per share) and $54 million (or $0.02 per share),
respectively, consisting primarily of mark-to-market losses on
certain ABI financial instruments associated with its share
commitments.
- In the third quarter and first nine months of 2022, equity
earnings from ABI included net pre-tax losses of $2.5 billion (or
$1.10 per share) and $2.6 billion (or $1.12 per share),
respectively, substantially all of which related to our impairment
of our investment in ABI.
The ABI-related special items above include our respective share
of the amounts recorded by ABI and additional adjustments related
to (i) conversion from international financial reporting standards
to GAAP and (ii) adjustments to our investment required under the
equity method of accounting.
Cronos-Related Special Items
We recorded net pre-tax expense consisting of the following:
Third Quarter
Nine Months Ended September
30,
($ in millions, except per share
data)
2023
2022
2023
2022
Loss on Cronos-related financial
instruments
$
—
$
—
$
—
$
14
(Income) losses from investments in equity
securities 1
—
5
30
166
Total Cronos-related special items -
(income) expense
$
—
$
5
$
30
$
180
Losses per share
$
—
$
—
$
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.
Income Tax Items
- In the third quarter and first nine months of 2023, we recorded
income tax items of $29 million (or $0.02 per share), due primarily
to tax expense associated with a tax basis adjustment related to
our investment in ABI.
- In the third quarter and first nine months of 2022, we recorded
income tax items of $42 million (or $0.02 per share) and $33
million (or $0.02 per share), respectively, due primarily to tax
benefits associated with the release of a valuation allowance
related to our prior Cronos warrant, partially offset by tax
expense for tax reserves related to the disallowance of certain
state tax credits.
SMOKEABLE PRODUCTS
Revenues and OCI
Third Quarter
- Net revenues decreased 5.3%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes decreased 3.7%.
- Reported OCI decreased 1.7%, primarily driven by lower shipment
volume, higher promotional investments and higher costs, partially
offset by higher pricing and NPM Adjustment Items in 2023.
- Adjusted OCI decreased 2.5%, primarily driven by lower shipment
volume, higher promotional investments and higher costs, partially
offset by higher pricing. Adjusted OCI margins increased by 0.7
percentage points to 59.6%.
First Nine Months
- Net revenues decreased 3.2%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes decreased 1.4%.
- Reported OCI decreased 0.2%, primarily driven by lower shipment
volume, higher promotional investments, higher per unit settlement
charges, higher costs and lower NPM Adjustment Items, partially
offset by higher pricing.
- Adjusted OCI increased 0.2%, primarily driven by higher
pricing, partially offset by lower shipment volume, higher
promotional investments, higher per unit settlement charges and
higher costs. Adjusted OCI margins increased by 0.9 percentage
points to 60.1%.
Table 2 - Smokeable Products: Revenues
and OCI ($ in millions)
Third Quarter
Nine Months Ended September
30,
2023
2022
Change
2023
2022
Change
Net revenues
$
5,572
$
5,882
(5.3
)%
$
16,482
$
17,020
(3.2
)%
Excise taxes
(976
)
(1,108
)
(2,945
)
(3,289
)
Revenues net of excise taxes
$
4,596
$
4,774
(3.7
)%
$
13,537
$
13,731
(1.4
)%
Reported OCI
$
2,743
$
2,791
(1.7
)%
$
8,092
$
8,112
(0.2
)%
NPM Adjustment Items
(15
)
—
(15
)
(60
)
Tobacco and health and certain other
litigation items
13
21
65
71
Adjusted OCI
$
2,741
$
2,812
(2.5
)%
$
8,142
$
8,123
0.2
%
Reported OCI margins 1
59.7
%
58.5
%
1.2 pp
59.8
%
59.1
%
0.7 pp
Adjusted OCI margins 1
59.6
%
58.9
%
0.7 pp
60.1
%
59.2
%
0.9 pp
1 Reported and adjusted OCI margins are calculated as reported
and adjusted OCI, respectively, divided by revenues net of excise
taxes.
Shipment Volume
Third Quarter
- Smokeable products segment reported domestic cigarette shipment
volume decreased 11.6%, primarily driven by the industry’s decline
rate (impacted by macroeconomic pressures on ATC disposable income
and the growth of illicit e-vapor products), retail share losses,
calendar differences and trade inventory movements.
- When adjusted for calendar differences and trade inventory
movements, smokeable products segment domestic cigarette shipment
volume decreased by an estimated 10%.
- 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 2.7%.
First Nine Months
- Smokeable products segment reported and adjusted domestic
cigarette shipment volume decreased 10.5%, primarily driven by the
industry’s decline rate (impacted by macroeconomic pressures on ATC
disposable income and the growth of illicit e-vapor products) and
retail share losses.
- When adjusted for trade inventory movements and other factors,
total estimated domestic cigarette industry volume decreased by an
estimated 8%.
- Reported cigar shipment volume increased 4.2%.
Table 3 - Smokeable Products: Reported
Shipment Volume (sticks in millions)
Third Quarter
Nine Months Ended September
30,
2023
2022
Change
2023
2022
Change
Cigarettes:
Marlboro
17,437
19,484
(10.5
)%
52,339
57,809
(9.5
)%
Other premium
895
997
(10.2
)%
2,674
2,951
(9.4
)%
Discount
970
1,364
(28.9
)%
3,119
4,211
(25.9
)%
Total cigarettes
19,302
21,845
(11.6
)%
58,132
64,971
(10.5
)%
Cigars:
Black & Mild
451
438
3.0
%
1,359
1,303
4.3
%
Other
—
1
(100.0
)%
2
3
(33.3
)%
Total cigars
451
439
2.7
%
1,361
1,306
4.2
%
Total smokeable products
19,753
22,284
(11.4
)%
59,493
66,277
(10.2
)%
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
Third Quarter
- Marlboro retail share of the total cigarette category was
42.3%, a decrease of 0.3 share points versus the prior year,
primarily due to increased macroeconomic pressures on ATC
disposable income and increased competitive activity. Marlboro
retail share increased 0.3 share points from the second quarter of
2023 (Marlboro retail share for the second quarter of 2023 was
revised to 42.0 from 42.1, based upon the most recent periodic data
refresh from Circana). Additionally, Marlboro share of the premium
segment was 58.9%, an increase of 0.4 share points versus the prior
year and 0.3 share points sequentially.
- The cigarette industry discount retail share was 28.2%, an
increase of 1.1 share points versus the prior year primarily due to
the ATC factors mentioned above. Cigarette industry discount retail
share was unchanged from the first and second quarter of 2023.
First Nine Months
- 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.
- The cigarette industry discount retail share was 28.2%, an
increase of 1.6 share points versus the prior year due to the ATC
factors mentioned above.
Table 4 - Smokeable Products:
Cigarettes Retail Share (percent)
Third Quarter
Nine Months Ended September
30,
2023
2022
Percentage point
change
2023
2022
Percentage point
change
Cigarettes:
Marlboro
42.3
%
42.6
%
(0.3
)
42.1
%
42.7
%
(0.6
)
Other premium
2.3
2.3
—
2.3
2.3
—
Discount
2.4
3.0
(0.6
)
2.6
3.1
(0.5
)
Total cigarettes
47.0
%
47.9
%
(0.9
)
47.0
%
48.1
%
(1.1
)
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
Third Quarter
- Net revenues increased 2.2%, primarily driven by higher pricing
and lower promotional investments, partially offset by lower MST
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 2.7%.
- Reported and adjusted OCI increased 7.1%, primarily driven by
higher pricing, lower costs and lower promotional investments,
partially offset by lower MST shipment volume and mix change.
Adjusted OCI margins increased by 2.9 percentage points to
69.3%.
First Nine Months
- Net revenues increased 2.3%, primarily driven by higher
pricing, partially offset by lower MST shipment volume, mix change
and higher promotional investments. Revenues net of excise taxes
increased 2.7%.
- Reported and adjusted OCI increased 4.1%, primarily driven by
higher pricing and lower costs, partially offset by lower MST
shipment volume, mix change and higher promotional investments.
Adjusted OCI margins increased by 0.9 percentage points to
68.9%.
Table 5 - Oral Tobacco Products:
Revenues and OCI ($ in millions)
Third Quarter
Nine Months Ended September
30,
2023
2022
Change
2023
2022
Change
Net revenues
$
685
$
670
2.2
%
$
1,993
$
1,948
2.3
%
Excise taxes
(28
)
(30
)
(85
)
(91
)
Revenues net of excise taxes
$
657
$
640
2.7
%
$
1,908
$
1,857
2.7
%
Reported and adjusted OCI
$
455
$
425
7.1
%
$
1,314
$
1,262
4.1
%
Reported and adjusted OCI margins
1
69.3
%
66.4
%
2.9 pp
68.9
%
68.0
%
0.9 pp
1 Reported and adjusted OCI margins are calculated as reported
and adjusted OCI, respectively, divided by revenues net of excise
taxes.
Shipment Volume
Third Quarter
- Oral tobacco products segment reported domestic shipment volume
decreased 3.3%, primarily driven by retail share losses in MST and
calendar differences, partially offset by the industry’s growth
rate and other factors. When adjusted for calendar differences,
oral tobacco products segment shipment volume decreased by an
estimated 2%.
First Nine Months
- Oral tobacco products segment reported domestic shipment volume
decreased 2.3%, primarily driven by retail share losses in MST,
partially offset by the industry’s growth rate, calendar
differences, trade inventory movements and other factors. 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 5%
for the six months ended September 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)
Third Quarter
Nine Months Ended September
30,
2023
2022
Change
2023
2022
Change
Copenhagen
109.4
118.2
(7.4
)%
333.3
356.5
(6.5
)%
Skoal
40.4
45.3
(10.8
)%
123.3
136.1
(9.4
)%
on!
28.7
21.0
36.7
%
83.9
59.6
40.8
%
Other
16.3
16.9
(3.6
)%
49.3
51.3
(3.9
)%
Total oral tobacco products
194.8
201.4
(3.3
)%
589.8
603.5
(2.3
)%
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
Third Quarter
- Oral tobacco products segment retail share was 42.1%, as share
declines for MST products were primarily driven by the category
share growth of oral nicotine pouches.
- Total U.S. oral tobacco category share for on! nicotine pouches
was 6.9%, an increase of 1.7 percentage points versus the prior
year, and was stable sequentially.
- The U.S. nicotine pouch category grew to 32.3% of the U.S. oral
tobacco category, an increase of 9.8 share points versus the prior
year. In addition, on!’s share of the nicotine pouch category was
21.4%.
First Nine Months
- Oral tobacco products segment retail share was 43.7%, as share
declines for MST products were primarily driven by the category
share growth of oral nicotine pouches.
- Total U.S. oral tobacco category share for on! nicotine pouches
was 6.8%, an increase of 2.1 percentage points.
Table 7 - Oral Tobacco Products: Retail
Share (percent)
Third Quarter
Nine Months Ended September
30,
2023
2022
Percentage point
change
2023
2022
Percentage point
change
Copenhagen
23.1
%
26.8
%
(3.7
)
24.2
%
27.4
%
(3.2
)
Skoal
9.3
11.1
(1.8
)
9.8
11.4
(1.6
)
on!
6.9
5.2
1.7
6.8
4.7
2.1
Other
2.8
3.2
(0.4
)
2.9
3.2
(0.3
)
Total oral tobacco products
42.1
%
46.3
%
(4.2
)
43.7
%
46.7
%
(3.0
)
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 operating companies include
Marlboro®, Black & Mild®, Copenhagen®, Skoal®, on!® and NJOY®.
Trademarks 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 X
(formerly known as 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, including illegal flavored
disposable e-vapor products, 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, and
reductions in shipment volumes;
- unfavorable outcomes with respect to litigation proceedings or
any governmental investigations;
- the risks associated with significant federal, state and local
government actions, including 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 September
30,
(dollars in millions, except per
share data)
(Unaudited)
2023
2022
% Change
Net revenues
$
6,281
$
6,550
(4.1
)%
Cost of sales 1
1,578
1,715
Excise taxes on products 1
1,004
1,138
Gross profit
3,699
3,697
0.1
%
Marketing, administration and research
costs
505
488
Operating companies income
3,194
3,209
(0.5
)%
Amortization of intangibles
42
19
General corporate expenses
63
78
Operating income
3,089
3,112
(0.7
)%
Interest and other debt expense, net
272
271
Net periodic benefit income, excluding
service cost
(33
)
(44
)
(Income) losses from investments in equity
securities 1
(58
)
2,478
Earnings before income taxes
2,908
407
100
%+
Provision for income taxes
742
183
Net earnings
$
2,166
$
224
100
%+
Per share data:
Diluted earnings per share
$
1.22
$
0.12
100
%+
Weighted-average diluted shares
outstanding
1,773
1,799
(1.4
)%
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 September
30,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable Products
Oral Tobacco Products
All Other
Total
2023
$
5,572
$
685
$
24
$
6,281
2022
5,882
670
(2
)
6,550
% Change
(5.3
)%
2.2
%
100
%+
(4.1
)%
Reconciliation:
For the quarter ended
September 30, 2022
$
5,882
$
670
$
(2
)
$
6,550
Operations
(310
)
15
26
(269
)
For the quarter ended
September 30, 2023
$
5,572
$
685
$
24
$
6,281
Operating Companies Income
(Loss)
Smokeable Products
Oral Tobacco Products
All Other
Total
2023
$
2,743
$
455
$
(4
)
$
3,194
2022
2,791
425
(7
)
3,209
% Change
(1.7
)%
7.1
%
42.9
%
(0.5
)%
Reconciliation:
For the quarter ended
September 30, 2022
$
2,791
$
425
$
(7
)
$
3,209
Tobacco and health and certain
other litigation items - 2022
21
—
—
21
21
—
—
21
NPM Adjustment Items - 2023
15
—
—
15
Tobacco and health and certain
other litigation items - 2023
(13
)
—
—
(13
)
2
—
—
2
Operations
(71
)
30
3
(38
)
For the quarter ended
September 30, 2023
$
2,743
$
455
$
(4
)
$
3,194
Schedule 3
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of
Earnings
For the Nine Months Ended
September 30,
(dollars in millions, except per
share data)
(Unaudited)
2023
2022
% Change
Net revenues
$
18,508
$
18,985
(2.5
)%
Cost of sales 1
4,693
4,869
Excise taxes on products 1
3,030
3,380
Gross profit
10,785
10,736
0.5
%
Marketing, administration and research
costs
1,396
1,389
Operating companies income
9,389
9,347
0.4
%
Amortization of intangibles
87
54
General corporate expenses
551
192
Operating income
8,751
9,101
(3.8
)%
Interest and other debt expense, net
758
832
Net periodic benefit income, excluding
service cost
(95
)
(137
)
(Income) losses from investments in equity
securities 1
(105
)
3,707
Loss on Cronos-related financial
instruments
—
14
Earnings before income taxes
8,193
4,685
74.9
%
Provision for income taxes
2,123
1,611
Net earnings
$
6,070
$
3,074
97.5
%
Per share data2:
Diluted earnings per share
$
3.40
$
1.69
100
%+
Weighted-average diluted shares
outstanding
1,780
1,808
(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.
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 Nine Months Ended
September 30,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable Products
Oral Tobacco Products
All Other
Total
2023
$
16,482
$
1,993
$
33
$
18,508
2022
17,020
1,948
17
18,985
% Change
(3.2
)%
2.3
%
94.1
%
(2.5
)%
Reconciliation:
For the nine months ended
September 30, 2022
$
17,020
$
1,948
$
17
$
18,985
Operations
(538
)
45
16
(477
)
For the nine months ended
September 30, 2023
$
16,482
$
1,993
$
33
$
18,508
Operating Companies Income
(Loss)
Smokeable Products
Oral Tobacco Products
All Other
Total
2023
$
8,092
$
1,314
$
(17
)
$
9,389
2022
8,112
1,262
(27
)
9,347
% Change
(0.2
)%
4.1
%
37.0
%
0.4
%
Reconciliation:
For the nine months ended
September 30, 2022
$
8,112
$
1,262
$
(27
)
$
9,347
NPM Adjustment Items - 2022
(60
)
—
—
(60
)
Tobacco and health and certain
other litigation items - 2022
71
—
—
71
11
—
—
11
NPM Adjustment Items - 2023
15
—
—
15
Tobacco and health and certain
other litigation items - 2023
(65
)
—
—
(65
)
(50
)
—
—
(50
)
Operations
19
52
10
81
For the nine months ended
September 30, 2023
$
8,092
$
1,314
$
(17
)
$
9,389
Schedule 5
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data
(dollars in millions)
(Unaudited)
For the Quarters Ended
September 30,
For the Nine Months Ended
September 30,
2023
2022
2023
2022
The segment detail of excise taxes on
products sold is as follows:
Smokeable products
$
976
$
1,108
$
2,945
$
3,289
Oral tobacco products
28
30
85
91
$
1,004
$
1,138
$
3,030
$
3,380
The segment detail of charges for
resolution expenses related to state settlement agreements included
in cost of sales is as follows:
Smokeable products
$
921
$
1,053
$
2,832
$
2,986
Oral tobacco products
—
2
3
7
$
921
$
1,055
$
2,835
$
2,993
The segment detail of FDA user fees
included in cost of sales is
as follows:
Smokeable products
$
63
$
67
$
193
$
204
Oral tobacco products
2
2
4
4
$
65
$
69
$
197
$
208
The detail of (income) losses from
investments in equity securities is as follows:
ABI
$
(61
)
$
2,367
$
(401
)
$
2,155
Cronos
3
11
46
197
JUUL
—
100
250
1,355
$
(58
)
$
2,478
$
(105
)
$
3,707
Schedule 6
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings
Per Share
For the Quarters Ended September
30,
(dollars in millions, except per
share data)
(Unaudited)
Net Earnings
Diluted EPS
2023 Net Earnings
$
2,166
$
1.22
2022 Net Earnings
$
224
$
0.12
% Change
100
%+
100
%+
Reconciliation:
2022 Net Earnings
$
224
$
0.12
2022 Acquisition, disposition and
integration-related items
1
—
2022 Tobacco and health and certain other
litigation items
32
0.02
2022 JUUL changes in fair value
100
0.06
2022 ABI-related special items
1,980
1.10
2022 Cronos-related special items
5
—
2022 Income tax items
(42
)
(0.02
)
Subtotal 2022 special items
2,076
1.16
2023 NPM Adjustment Items
11
—
2023 Acquisition, disposition and
integration-related items
(9
)
—
2023 Tobacco and health and certain other
litigation items
(17
)
(0.01
)
2023 ABI-related special items
(65
)
(0.03
)
2023 Income tax items
(29
)
(0.02
)
Subtotal 2023 special items
(109
)
(0.06
)
Fewer shares outstanding
—
0.01
Change in tax rate
14
0.01
Operations
(39
)
(0.02
)
2023 Net Earnings
$
2,166
$
1.22
Schedule 7
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and
non-GAAP Measures
For the Quarters Ended September
30,
(dollars in millions, except per
share data)
(Unaudited)
Earnings before Income
Taxes
Provision for Income
Taxes
Net Earnings
Diluted EPS
2023 Reported
$
2,908
$
742
$
2,166
$
1.22
NPM Adjustment Items
(15
)
(4
)
(11
)
—
Acquisition, disposition and
integration-related items
13
4
9
—
Tobacco and health and certain other
litigation items
23
6
17
0.01
ABI-related special items
82
17
65
0.03
Income tax items
—
(29
)
29
0.02
2023 Adjusted for Special Items
$
3,011
$
736
$
2,275
$
1.28
2022 Reported
$
407
$
183
$
224
$
0.12
Acquisition, disposition and
integration-related items
1
—
1
—
Tobacco and health and certain other
litigation items
43
11
32
0.02
JUUL changes in fair value
100
—
100
0.06
ABI-related special items
2,507
527
1,980
1.10
Cronos-related special items
5
—
5
—
Income tax items
—
42
(42
)
(0.02
)
2022 Adjusted for Special Items
$
3,063
$
763
$
2,300
$
1.28
2023 Reported Net Earnings
$
2,166
$
1.22
2022 Reported Net Earnings
$
224
$
0.12
% Change
100%+
100%+
2023 Net Earnings Adjusted for Special
Items
$
2,275
$
1.28
2022 Net Earnings Adjusted for Special
Items
$
2,300
$
1.28
% Change
(1.1
)%
—
%
Schedule 8
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings
Per Share
For the Nine Months Ended
September 30,
(dollars in millions, except per
share data)
(Unaudited)
Net Earnings
Diluted EPS1
2023 Net Earnings
$
6,070
$
3.40
2022 Net Earnings
$
3,074
$
1.69
% Change
97.5
%
100
%+
Reconciliation:
2022 Net Earnings
$
3,074
$
1.69
2022 NPM Adjustment Items
(45
)
(0.02
)
2022 Acquisition, disposition and
integration-related items
8
—
2022 Tobacco and health and certain other
litigation items
76
0.04
2022 JUUL changes in fair value
1,355
0.76
2022 ABI-related special items
2,022
1.12
2022 Cronos-related special items
172
0.09
2022 Income tax items
(33
)
(0.02
)
Subtotal 2022 special items
3,555
1.97
2023 NPM Adjustment Items
11
—
2023 Acquisition, disposition and
integration-related items
(10
)
—
2023 Tobacco and health and certain other
litigation items
(318
)
(0.18
)
2023 Loss on disposition of JUUL equity
securities
(250
)
(0.14
)
2023 ABI-related special items
(43
)
(0.02
)
2023 Cronos-related special items
(30
)
(0.02
)
2023 Income tax items
(29
)
(0.02
)
Subtotal 2023 special items
(669
)
(0.38
)
Fewer shares outstanding
—
0.06
Change in tax rate
21
0.01
Operations
89
0.05
2023 Net Earnings
$
6,070
$
3.40
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 Nine Months Ended
September 30,
(dollars in millions, except per
share data)
(Unaudited)
Earnings before Income
Taxes
Provision for Income
Taxes
Net Earnings
Diluted EPS1
2023 Reported
$
8,193
$
2,123
$
6,070
$
3.40
NPM Adjustment Items
(15
)
(4
)
(11
)
—
Acquisition, disposition and
integration-related items
14
4
10
—
Tobacco and health and certain other
litigation items
424
106
318
0.18
Loss on disposition of JUUL equity
securities
250
—
250
0.14
ABI-related special items
54
11
43
0.02
Cronos-related special items
30
—
30
0.02
Income tax items
—
(29
)
29
0.02
2023 Adjusted for Special Items
$
8,950
$
2,211
$
6,739
$
3.78
2022 Reported
$
4,685
$
1,611
$
3,074
$
1.69
NPM Adjustment Items
(60
)
(15
)
(45
)
(0.02
)
Acquisition, disposition and
integration-related items
10
2
8
—
Tobacco and health and certain other
litigation items
101
25
76
0.04
JUUL changes in fair value
1,355
—
1,355
0.76
ABI-related special items
2,560
538
2,022
1.12
Cronos-related special items
180
8
172
0.09
Income tax items
—
33
(33
)
(0.02
)
2022 Adjusted for Special Items
$
8,831
$
2,202
$
6,629
$
3.66
2023 Reported Net Earnings
$
6,070
$
3.40
2022 Reported Net Earnings
$
3,074
$
1.69
% Change
97.5
%
100
%+
2023 Net Earnings Adjusted for Special
Items
$
6,739
$
3.78
2022 Net Earnings Adjusted for Special
Items
$
6,629
$
3.66
% Change
1.7
%
3.3
%
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, disposition and
integration-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)
September 30, 2023
December 31, 2022
Assets
Cash and cash equivalents
$
1,537
$
4,030
Receivable from the sale of IQOS System
commercialization rights
—
1,721
Inventories
1,174
1,180
Other current assets
679
289
Property, plant and equipment, net
1,629
1,608
Goodwill and other intangible assets,
net
20,518
17,561
Investments in equity securities
9,907
9,600
Other long-term assets
1,025
965
Total assets
$
36,469
$
36,954
Liabilities and Stockholders’ Equity
(Deficit)
Current portion of long-term debt
$
1,121
$
1,556
Accrued settlement charges
2,388
2,925
Deferred gain from the sale of IQOS System
commercialization rights (current)
2,700
—
Other current liabilities
4,172
4,135
Long-term debt
23,977
25,124
Deferred income taxes
2,527
2,897
Accrued pension costs
127
133
Accrued postretirement health care
costs
1,096
1,083
Deferred gain from the sale of IQOS System
commercialization rights (long-term)
—
2,700
Other long-term liabilities
1,718
324
Total liabilities
39,826
40,877
Total stockholders’ equity (deficit)
attributable to Altria
(3,407
)
(3,973
)
Noncontrolling interest
50
50
Total liabilities and stockholders’
equity (deficit)
$
36,469
$
36,954
Total debt
$
25,098
$
26,680
Schedule 12
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data for
Special Items
For the Quarters Ended September
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
2023 Special Items - (Income)
Expense
NPM Adjustment Items
$
(15
)
$
—
$
—
$
—
$
—
Acquisition, disposition and
integration-related items
—
—
15
(2
)
—
Tobacco and health and certain other
litigation items
—
13
10
—
—
ABI-related special items
—
—
—
—
82
2022 Special Items - (Income)
Expense
Acquisition, disposition and
integration-related items
$
—
$
—
$
1
$
—
$
—
Tobacco and health and certain other
litigation items
—
21
20
2
—
JUUL changes in fair value
—
—
—
—
100
ABI-related special items
—
—
—
—
2,507
Cronos-related special items
—
—
—
—
5
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 Nine Months Ended
September 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
NPM Adjustment Items
$
(15
)
$
—
$
—
$
—
$
—
$
—
Acquisition, disposition and
integration-related items
—
—
59
(45
)
—
—
Tobacco and health and certain other
litigation items
—
65
348
11
—
—
Loss on disposition of JUUL equity
securities
—
—
—
—
250
—
ABI-related special items
—
—
—
—
54
—
Cronos-related special items
—
—
—
—
30
—
2022 Special Items - (Income)
Expense
NPM Adjustment Items
$
(60
)
$
—
$
—
$
—
$
—
$
—
Acquisition, disposition and
integration-related items
—
—
10
—
—
—
Tobacco and health and certain other
litigation items
—
71
27
3
—
—
JUUL changes in fair value
—
—
—
—
1,355
—
ABI-related special items
—
—
—
—
2,560
—
Cronos-related special items
—
—
—
—
166
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/20231025994449/en/
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