Altria Group, Inc. (NYSE: MO) today reports our 2024
second-quarter and first-half business results and narrows our
guidance for 2024 full-year adjusted diluted earnings per share
(EPS).
“Altria’s momentum continues to build as we pursue our Vision to
responsibly lead the transition of adult smokers to a smoke-free
future,” said Billy Gifford, Altria’s Chief Executive Officer. “In
the second quarter, our companies’ innovative smoke-free products
delivered strong share and volume performance, and we hit
meaningful milestones that we believe set us up for future success.
NJOY received the first and only marketing granted orders from the
FDA for menthol e-vapor products, and we submitted PMTA
applications to the FDA for next generation NJOY and on!
products.”
“Our traditional tobacco businesses also remained resilient,
despite a challenging operating environment. Our highly cash
generative businesses supported continued investments in our
innovative product efforts, and we returned significant value to
shareholders during the first half of the year, with more than $5.8
billion delivered to shareholders through share repurchases and
dividends.”
First-half adjusted diluted EPS declined by 1.6%, consistent
with our guidance expectations for growth to be weighted to the
second half of the year. We are narrowing our full-year 2024
guidance and now expect to deliver adjusted diluted EPS in a range
of $5.07 to $5.15. This range represents an adjusted diluted EPS
growth rate of 2.5% to 4.0% from a base of $4.95 in 2023.
Altria Headline Financials1
($ in millions, except per share data)
Q2 2024
Change vs. Q2
2023
First Half 2024
Change vs. First Half
2023
Net revenues
$6,209
(4.6)%
$11,785
(3.6)%
Revenues net of excise taxes
$5,277
(3.0)%
$9,994
(2.0)%
Reported tax rate
25.7%
1.1 pp
24.5%
(1.6) pp
Adjusted tax rate
24.3%
(0.4) pp
24.5%
(0.3) pp
Reported diluted EPS2
$2.21
85.7%
$3.41
56.4%
Adjusted diluted EPS2
$1.31
—%
$2.46
(1.6)%
1 “Adjusted” financial measures presented in this release
exclude the impact of special items. See “Basis of Presentation”
for more information and see the schedules to this press release
for reconciliations to corresponding GAAP measures.
2 “EPS” represents diluted earnings per share.
As previously announced, a conference call with the investment
community and news media will be webcast on July 31, 2024 at 9:00
a.m. Eastern Time. Access to the webcast is available at
www.altria.com/webcasts.
NJOY
Business Results
Second Quarter:
- NJOY consumables reported shipment volume increased 14.7%
sequentially to 12.5 million units.
- NJOY devices reported shipment volume increased 80.0%
sequentially to 1.8 million units.
- NJOY retail share in the U.S. multi-outlet and convenience
channel increased 1.3 share points sequentially to 5.5%.
First Half:
- NJOY consumables reported shipment volume was 23.4 million
units.
- NJOY devices reported shipment volume was 2.8 million
units.
- NJOY retail share in the U.S. multi-outlet and convenience
channel was 4.8%.
Smoke-free Product Portfolio Update
Marketing Granted Orders (MGOs)
- In June 2024, NJOY received marketing authorizations from the
FDA for four menthol e-vapor products, including NJOY ACE Pod
Menthol 2.4% and 5%, NJOY DAILY Menthol 4.5% and NJOY DAILY Extra
Menthol 6%. NJOY has the first and only menthol e-vapor products
authorized by the FDA.
- Under the terms of the agreement pursuant to which we acquired
NJOY (the Merger Agreement), we were obligated to make cash
payments totaling $250 million if the FDA issued MGOs for NJOY
menthol pod products. As a result, once the FDA issued MGOs for
NJOY menthol products in June 2024, we made these payments in July
2024. Additionally, we recorded a pre-tax charge of approximately
$140 million during the second quarter of 2024, related to a change
in the fair value of the contingent payments as part of the NJOY
acquisition.
Premarket Tobacco Product Application (PMTA)
Submissions
- NJOY submitted a supplemental PMTA to the FDA to commercialize
and market the NJOY ACE 2.0 device, which incorporates access
restriction technology designed to prevent underage use. In
addition, NJOY re-submitted PMTAs for blueberry and watermelon pod
products that work exclusively with the 2.0 device. Under the terms
of the Merger Agreement, upon the FDA issuance of MGOs with respect
to NJOY blueberry and watermelon pod products, we are obligated to
make cash payments totaling $250 million.
- Helix submitted PMTAs to the FDA for on! PLUS, an innovative
pouch product made using our proprietary “soft-feel” material. The
PMTAs were submitted for three varieties: tobacco, mint and
wintergreen, each in three different nicotine strength
options.
Cash Returns to Shareholders
Share Repurchase Program
- We completed our $2.4 billion accelerated share repurchase
program (ASR program), which was announced during the first quarter
of 2024. Under the ASR program, we repurchased 53.9 million shares
at an average price of $44.50.
- As of June 30, 2024, we had $990 million remaining under our
currently authorized $3.4 billion share repurchase program, which
we expect to complete by December 31, 2024. 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 $1.7 billion and $3.4 billion in the
second quarter and first half, respectively. 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 the following materials that highlight
our responsibility efforts and initiatives:
- 2023 Reduce Harm of Tobacco Products Snapshot;
- 2023 Prevent Underage Use Snapshot;
- 2023 Support Our People & Communities Snapshot; and
- 2023 Engage & Lead Responsibly Report.
2024 Full-Year Guidance
We narrow our guidance for 2024 full-year adjusted diluted EPS
to be in a range of $5.07 to $5.15, representing a growth rate of
2.5% to 4.0% from a base of $4.95 in 2023. We expect 2024 adjusted
diluted EPS growth to be weighted to the second half of the year.
Our guidance includes the impact of two additional shipping days in
2024, both of which occur in the second half, and assumes limited
impact on combustible and e-vapor product volumes from enforcement
efforts in the illicit e-vapor market.
While our 2024 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 cumulative impact of inflation, (ii) adult tobacco
consumer (ATC) dynamics, including purchasing patterns and adoption
of smoke-free products, (iii) illicit e-vapor enforcement and (iv)
regulatory, litigation and legislative developments.
Our 2024 full-year adjusted diluted EPS guidance range includes
planned investments in support of our Vision, such as (i)
marketplace activities in support of our smoke-free products and
(ii) continued smoke-free product research, development and
regulatory preparation expenses.
We now expect our 2024 full-year adjusted effective tax rate to
be in a range of 24.0% to 25.0%.
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,
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 and first half of
2024.
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 4.6% to $6.2 billion, primarily driven
by lower net revenues in the smokeable products segment, partially
offset by higher net revenues in the oral tobacco products segment.
Revenues net of excise taxes decreased 3.0% to $5.3 billion.
- Reported diluted EPS increased 85.7% to $2.21, primarily driven
by the gain on the sale of the IQOS Tobacco Heating System
commercialization rights, lower tobacco and health and certain
other litigation items and fewer shares outstanding, partially
offset by lower reported operating companies income (OCI), which
includes a non-cash impairment of the Skoal trademark, and a change
in the fair value of contingent payments associated with the
acquisition of NJOY.
- Adjusted diluted EPS was unchanged at $1.31, as lower adjusted
OCI was offset by fewer shares outstanding.
First Half
- Net revenues decreased 3.6% to $11.8 billion, driven by lower
net revenues in the smokeable products segment, partially offset by
higher net revenues in the oral tobacco products segment and the
all other category. Revenues net of excise taxes decreased 2.0% to
$10.0 billion.
- Reported diluted EPS increased 56.4% to $3.41, primarily driven
by the gain on the sale of the IQOS Tobacco Heating System
commercialization rights, 2023 charges related to our former
investment in JUUL Labs, Inc. (JUUL), lower tobacco and health and
certain other litigation items, fewer shares outstanding and the
partial sale of our investment in ABI and related favorable income
tax items. These items were partially offset by lower reported OCI,
which includes a non-cash impairment of the Skoal trademark, and a
change in the fair value of contingent payments associated with the
acquisition of NJOY.
- Adjusted diluted EPS decreased 1.6% to $2.46, primarily driven
by lower adjusted OCI, partially offset by fewer shares
outstanding.
Table 1 - Altria’s Adjusted
Results
Second Quarter
Six Months Ended June
30,
2024
2023
Change
2024
2023
Change
Reported diluted EPS
$
2.21
$
1.19
85.7
%
$
3.41
$
2.18
56.4
%
Acquisition and disposition-related
items
(1.09
)
—
(1.09
)
—
Asset impairment
0.15
—
0.15
—
Tobacco and health and certain other
litigation items
0.02
0.12
0.03
0.17
Loss on disposition of JUUL equity
securities
—
—
—
0.14
ABI-related special items
0.01
—
(0.02
)
(0.01
)
Cronos-related special items
—
—
0.01
0.02
Income tax items
0.01
—
(0.03
)
—
Adjusted diluted EPS
$
1.31
$
1.31
—
%
$
2.46
$
2.50
(1.6
)%
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 4 and 5.
Acquisition and Disposition-Related Items
In the second quarter and first half of 2024, we recorded
acquisition and disposition-related items of $2.6 billion (or $1.09
per share), primarily related to a pre-tax gain of $2.7 billion
upon the assignment of the IQOS Tobacco Heating System
commercialization rights to Philip Morris International Inc. in
April 2024, partially offset by a pre-tax charge related to a
change in the fair value of the contingent payments associated with
the acquisition of NJOY.
Asset Impairment
In the second quarter and first half of 2024, we recorded a
non-cash, pre-tax charge of $354 million (or $0.15 per share) for
an impairment of the Skoal trademark.
Tobacco and Health and Certain Other Litigation Items
In the second quarter and first half of 2024, we recorded
pre-tax charges of $44 million (or $0.02 per share) and $68 million
(or $0.03 per share), respectively, for tobacco and health and
certain other litigation items.
In the second quarter and first half of 2023, we recorded
pre-tax charges of $290 million (or $0.12 per share) and $401
million (or $0.17 per share), respectively, for tobacco and health
and certain other litigation items and related interest costs. The
charges in the second quarter of 2023 were primarily driven by our
settlement of JUUL-related litigation.
Loss on Disposition of JUUL Equity Securities
In the first half of 2023, we recorded a non-cash, pre-tax loss
of $250 million (or $0.14 per share) related to the disposition of
our former investment in JUUL. We recorded a corresponding
adjustment to the JUUL tax valuation allowance.
ABI-Related Special Items
In the first half of 2024, ABI-related special items included
net pre-tax income of $62 million (or $0.02 per share), primarily
related to our pre-tax gain on the partial sale of our investment
in ABI, partially offset by transaction costs.
The ABI-related special items include our respective share of
the amounts recorded by ABI and additional adjustments related to
(i) the conversion of ABI-related special items from international
financial reporting standards to GAAP and (ii) adjustments to our
investment required under the equity method of accounting.
Cronos-Related Special Items
In the first half of 2023, Cronos-related special items included
pre-tax losses of $30 million (or $0.02 per share), substantially
all of which related to our share of special items recorded by
Cronos. We recorded a corresponding adjustment to the Cronos tax
valuation allowance.
Income Tax Items
In the first half of 2024, we recorded income tax items of $52
million (or $0.03 per share), due primarily to an income tax
benefit from the partial release of a valuation allowance on
JUUL-related losses, partially offset by interest expense on tax
reserves recorded in prior years. The valuation allowance release
was due to the capital gain associated with the partial sale of our
investment in ABI.
SMOKEABLE PRODUCTS
Revenues and OCI
Second Quarter
- Net revenues decreased 5.6%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes decreased 4.0%.
- Reported OCI decreased 1.4%, primarily driven by lower shipment
volume, higher promotional investments, higher per unit settlement
charges and higher manufacturing costs, partially offset by higher
pricing and lower selling, general and administrative (SG&A)
costs, which include lower tobacco and health and certain other
litigation items.
- Adjusted OCI decreased 2.0%, primarily driven by lower shipment
volume, higher promotional investments, higher per unit settlement
charges and higher manufacturing costs, partially offset by higher
pricing and lower SG&A costs. Adjusted OCI margins increased by
1.2 percentage points to 61.6%.
First Half
- Net revenues decreased 4.7%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes decreased 3.2%.
- Reported OCI decreased 1.9%, primarily driven by lower shipment
volume, higher promotional investments, higher per unit settlement
charges and higher manufacturing costs, partially offset by higher
pricing and lower SG&A costs, which include lower tobacco and
health and certain other litigation items.
- Adjusted OCI decreased 2.3%, primarily driven by lower shipment
volume, higher promotional investments, higher per unit settlement
charges and higher manufacturing costs, partially offset by higher
pricing and lower SG&A costs. Adjusted OCI margins increased by
0.6 percentage points to 61.0%.
Table 2 - Smokeable Products: Revenues
and OCI ($ in millions)
Second Quarter
Six Months Ended June
30,
2024
2023
Change
2024
2023
Change
Net revenues
$
5,495
$
5,820
(5.6
)%
$
10,401
$
10,910
(4.7
)%
Excise taxes
(908
)
(1,041
)
(1,742
)
(1,969
)
Revenues net of excise taxes
$
4,587
$
4,779
(4.0
)%
$
8,659
$
8,941
(3.2
)%
Reported OCI
$
2,807
$
2,846
(1.4
)%
$
5,246
$
5,349
(1.9
)%
NPM Adjustment Items
—
—
(6
)
—
Tobacco and health and certain other
litigation items
20
40
38
52
Adjusted OCI
$
2,827
$
2,886
(2.0
)%
$
5,278
$
5,401
(2.3
)%
Reported OCI margins 1
61.2
%
59.6
%
1.6 pp
60.6
%
59.8
%
0.8 pp
Adjusted OCI margins 1
61.6
%
60.4
%
1.2 pp
61.0
%
60.4
%
0.6 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 13.0%, primarily driven by the industry’s decline
rate (impacted by macroeconomic pressures on ATC discretionary
income and the growth of illicit e-vapor products), trade inventory
movements and retail share losses.
- When adjusted for trade inventory movements, smokeable products
segment domestic cigarette shipment volume decreased by an
estimated 11%.
- When adjusted for trade inventory movements, total estimated
domestic cigarette industry volume decreased by an estimated
9.5%.
- Reported cigar shipment volume decreased 0.9%.
First Half
- Smokeable products segment reported domestic cigarette shipment
volume decreased 11.5%, primarily driven by the industry’s decline
rate (impacted by macroeconomic pressures on ATC discretionary
income and the growth of illicit e-vapor products), retail share
losses and trade inventory movements.
- When adjusted for trade inventory movements, smokeable products
segment domestic cigarette shipment volume decreased by an
estimated 10.5%.
- When adjusted for trade inventory movements and other factors,
total estimated domestic cigarette industry volume decreased by an
estimated 9%.
- Reported cigar shipment volume decreased 3.4%.
Table 3 - Smokeable Products: Reported
Shipment Volume (sticks in millions)
Second Quarter
Six Months Ended June
30,
2024
2023
Change
2024
2023
Change
Cigarettes:
Marlboro
16,316
18,506
(11.8
)%
31,289
34,902
(10.4
)%
Other premium
826
954
(13.4
)%
1,573
1,779
(11.6
)%
Discount
756
1,101
(31.3
)%
1,486
2,149
(30.9
)%
Total cigarettes
17,898
20,561
(13.0
)%
34,348
38,830
(11.5
)%
Cigars:
Black & Mild
460
465
(1.1
)%
877
908
(3.4
)%
Other
2
1
100.0
%
2
2
—
%
Total cigars
462
466
(0.9
)%
879
910
(3.4
)%
Total smokeable products
18,360
21,027
(12.7
)%
35,227
39,740
(11.4
)%
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
42.0%, a decrease of 0.1 share point versus the prior year and
unchanged sequentially. Additionally, Marlboro share of the premium
segment was 59.4%, an increase of 0.7 share points versus the prior
year and 0.1 share point sequentially.
- The cigarette industry discount retail share was 29.3%, an
increase of 1.0 share point versus the prior year and 0.2 share
points sequentially, primarily due to increased macroeconomic
pressures on ATC discretionary income.
First Half
- Marlboro retail share of the total cigarette category was
42.0%, a decrease of 0.1 share point. Additionally, Marlboro share
of the premium segment was 59.3%, an increase of 0.7 share
points.
- The cigarette industry discount retail share was 29.2%, an
increase of 0.9 share points, primarily due to increased
macroeconomic pressures on ATC discretionary income.
Table 4 - Smokeable Products:
Cigarettes Retail Share (percent)
Second Quarter
Six Months Ended June
30,
2024
2023
Percentage point
change
2024
2023
Percentage point
change
Cigarettes:
Marlboro
42.0
%
42.1
%
(0.1
)
42.0
%
42.1
%
(0.1
)
Other premium
2.2
2.3
(0.1
)
2.3
2.3
—
Discount
2.0
2.5
(0.5
)
2.0
2.6
(0.6
)
Total cigarettes
46.2
%
46.9
%
(0.7
)
46.3
%
47.0
%
(0.7
)
Note: Retail share results for cigarettes are based on data from
Circana, LLC (Circana) as well as MSAi. Circana maintains a blended
retail service that uses a sample of stores and certain wholesale
shipments 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. 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 the standard practice of retail
services 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 4.6%, primarily driven by higher pricing
and lower promotional investments, partially offset by a higher
percentage of on! shipment volume relative to MST versus the prior
year (mix change) and lower MST shipment volume. Revenues net of
excise taxes increased 5.5%.
- Reported OCI decreased 78.1%, primarily driven by a non-cash
impairment of the Skoal trademark, mix change, higher costs and
lower MST shipment volume, partially offset by higher pricing and
lower promotional investments.
- Adjusted OCI increased 1.8%, primarily driven by higher pricing
and lower promotional investments, partially offset by mix change,
higher costs and lower MST shipment volume. Adjusted OCI margins
decreased by 2.4 percentage points to 65.6%.
First Half
- Net revenues increased 4.1%, primarily driven by higher pricing
and lower promotional investments, partially offset by lower MST
shipment volume and mix change. Revenues net of excise taxes
increased 5.0%.
- Reported OCI decreased 38.1%, primarily driven by a non-cash
impairment of the Skoal trademark, lower MST shipment volume, mix
change and higher costs, partially offset by higher pricing and
lower promotional investments.
- Adjusted OCI increased 3.1%, primarily driven by higher pricing
and lower promotional investments, partially offset by lower MST
shipment volume, mix change and higher costs. Adjusted OCI margins
decreased by 1.2 percentage points to 67.5%.
Table 5 - Oral Tobacco Products:
Revenues and OCI ($ in millions)
Second Quarter
Six Months Ended June
30,
2024
2023
Change
2024
2023
Change
Net revenues
$
711
$
680
4.6
%
$
1,362
$
1,308
4.1
%
Excise taxes
(24
)
(29
)
(49
)
(57
)
Revenues net of excise taxes
$
687
$
651
5.5
%
$
1,313
$
1,251
5.0
%
Reported OCI
$
97
$
443
(78.1
)%
$
532
$
859
(38.1
)%
Asset impairment
354
—
354
—
Adjusted OCI
$
451
$
443
1.8
%
$
886
$
859
3.1
%
Reported OCI margins 1
14.1
%
68.0
%
(53.9) pp
40.5
%
68.7
%
(28.2) pp
Adjusted OCI margins 1
65.6
%
68.0
%
(2.4) pp
67.5
%
68.7
%
(1.2) 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 1.8%, primarily driven by retail share losses, partially
offset by the industry’s growth rate, trade inventory movements and
other factors. When adjusted for trade inventory movements and
calendar differences, oral tobacco products segment shipment volume
decreased by an estimated 3%.
First Half
- Oral tobacco products segment reported domestic shipment volume
decreased 2.5%, primarily driven by retail share losses, partially
offset by the industry’s growth rate, calendar differences and
other factors. When adjusted for calendar differences and trade
inventory movements, oral tobacco products segment shipment volume
decreased by an estimated 3.5%.
- Total oral tobacco industry volume increased by an estimated 9%
for the six months ended June 30, 2024, 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,
2024
2023
Change
2024
2023
Change
Copenhagen
103.9
114.9
(9.6
)%
203.0
223.9
(9.3
)%
Skoal
37.5
42.6
(12.0
)%
74.2
82.9
(10.5
)%
on!
41.2
30.0
37.3
%
74.5
55.2
35.0
%
Other
18.1
16.9
7.1
%
33.6
33.0
1.8
%
Total oral tobacco products
200.7
204.4
(1.8
)%
385.3
395.0
(2.5
)%
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 37.9%, as share
declines for MST products were primarily driven by oral nicotine
pouch segment share growth.
- Total U.S. oral tobacco category share for on! nicotine pouches
was 8.1%, an increase of 1.2 share points versus the prior year and
1.0 share point sequentially.
- The U.S. nicotine pouch category grew to 41.6% of the U.S. oral
tobacco category, an increase of 12.3 share points versus the prior
year. In addition, on!’s share of the nicotine pouch category was
19.4%, a decrease of 4.2 share points versus the prior year and an
increase of 1.8 share points sequentially.
First Half
- Oral tobacco products segment retail share was 37.9%, as share
declines for MST products were primarily driven by oral nicotine
pouch segment share growth.
- Total U.S. oral tobacco category share for on! nicotine pouches
was 7.6%, an increase of 0.9 share points versus the prior
year.
- The U.S. nicotine pouch category grew to 40.9% of the U.S. oral
tobacco category, an increase of 12.9 share points versus the prior
year. In addition, on!’s share of the nicotine pouch category was
18.5%, a decrease of 5.4 share points versus the prior year.
Table 7 - Oral Tobacco Products: Retail
Share (percent)
Second Quarter
Six Months Ended June
30,
2024
2023
Percentage point
change
2024
2023
Percentage point
change
Copenhagen
19.5
%
24.2
%
(4.7
)
19.8
%
24.7
%
(4.9
)
Skoal
7.7
9.6
(1.9
)
7.9
9.9
(2.0
)
on!
8.1
6.9
1.2
7.6
6.7
0.9
Other
2.6
3.0
(0.4
)
2.6
3.0
(0.4
)
Total oral tobacco products
37.9
%
43.7
%
(5.8
)
37.9
%
44.3
%
(6.4
)
Note: Our oral tobacco products segment’s retail share results
exclude international volume, which is currently not material to
our oral tobacco products segment. 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 domestic tobacco derived oral products,
in the form of MST, 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 the standard
practice of retail services 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), an e-vapor manufacturer with a commercialized product
portfolio fully covered by marketing granted orders from the U.S.
Food and Drug Administration (FDA).
Additionally, we have a majority-owned joint venture, Horizon
Innovations LLC (Horizon), for the U.S. marketing and
commercialization of heated tobacco stick products.
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 “2024 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 capital and other
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, consisting
of combustible cigarettes and machine-made large cigars, and (ii)
oral tobacco products, consisting of MST, snus and oral nicotine
pouches. We have included results for NJOY, Horizon, Helix
International, and other business activities, substantially all of
which consist of research and development expense related to
certain new product platforms and technologies 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, 2023. 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
disposable e-vapor products, which contributes to reductions in
domestic cigarette consumption levels and shipment volume;
- the risks associated with illicit trade in tobacco products,
including counterfeit products, illegally imported products,
illegal disposable e-vapor products, illegal oral nicotine products
and products designed to avoid the regulatory framework for tobacco
products, such as products using nicotine analogues, each of which
contribute to reductions in the consumption levels and shipment
volumes of our businesses’ products;
- 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, including significant monetary and
non-monetary remedies and importation bans;
- the risks associated with significant federal, state and local
government actions, including FDA regulatory actions and inaction,
and various private sector actions;
- increases in tobacco product-related taxes;
- our failure to complete or manage successfully strategic
transactions, including our acquisition of NJOY 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 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 corporate
responsibility factors, including environmental, social and
governance matters;
- the failure of our, or our key service providers’ or key
suppliers’, information systems to function as intended, or
cyber-attacks or security breaches affecting us or our key service
providers or key suppliers;
- our failure, or the failure of our key service providers or key
suppliers, to comply with laws related to personal data protection,
privacy, artificial intelligence and information security;
- 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
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)
2024
2023
% Change
Net revenues
$
6,209
$
6,508
(4.6
)%
Cost of sales 1
1,602
1,681
Excise taxes on products 1
932
1,070
Gross profit
3,675
3,757
(2.2
)%
Marketing, administration and research
costs
528
472
Asset impairment
354
—
Operating companies income
2,793
3,285
(15.0
)%
Amortization of intangibles
37
27
General corporate expenses
223
353
Operating income
2,533
2,905
(12.8
)%
Interest and other debt expense, net
261
257
Net periodic benefit income, excluding
service cost
(25
)
(31
)
(Income) losses from investments in equity
securities 1
(119
)
(127
)
Gain on the sale of IQOS System
commercialization rights
(2,700
)
—
Earnings before income taxes
5,116
2,806
82.3
%
Provision for income taxes
1,313
689
Net earnings
$
3,803
$
2,117
79.6
%
Per share data:
Diluted earnings per share
$
2.21
$
1.19
85.7
%
Weighted-average diluted shares
outstanding
1,718
1,782
(3.6
)%
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.
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
2024
$
5,495
$
711
$
3
$
6,209
2023
5,820
680
8
6,508
% Change
(5.6
)%
4.6
%
(62.5
)%
(4.6
)%
Reconciliation:
For the quarter ended June 30,
2023
$
5,820
$
680
$
8
$
6,508
Operations
(325
)
31
(5
)
(299
)
For the quarter ended June 30,
2024
$
5,495
$
711
$
3
$
6,209
Operating Companies Income
(Loss)
Smokeable Products
Oral Tobacco Products
All Other
Total
2024
$
2,807
$
97
$
(111
)
$
2,793
2023
2,846
443
(4
)
3,285
% Change
(1.4
)%
(78.1
)%
(100%+)
(15.0
)%
Reconciliation:
For the quarter ended June 30,
2023
$
2,846
$
443
$
(4
)
$
3,285
Tobacco and health and certain other
litigation items - 2023
40
—
—
40
40
—
—
40
Asset impairment - 2024
—
(354
)
—
(354
)
Tobacco and health and certain other
litigation items - 2024
(20
)
—
—
(20
)
(20
)
(354
)
—
(374
)
Operations
(59
)
8
(107
)
(158
)
For the quarter ended June 30,
2024
$
2,807
$
97
$
(111
)
$
2,793
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)
2024
2023
% Change
Net revenues
$
11,785
$
12,227
(3.6
)%
Cost of sales 1
3,039
3,115
Excise taxes on products 1
1,791
2,026
Gross profit
6,955
7,086
(1.8
)%
Marketing, administration and research
costs
995
891
Asset impairment
354
—
Operating companies income
5,606
6,195
(9.5
)%
Amortization of intangibles
64
45
General corporate expenses
335
488
Operating income
5,207
5,662
(8.0
)%
Interest and other debt expense, net
515
486
Net periodic benefit income, excluding
service cost
(49
)
(62
)
(Income) losses from investments in equity
securities 1
(414
)
(47
)
Gain on the sale of IQOS System
commercialization rights
(2,700
)
—
Earnings before income taxes
7,855
5,285
48.6
%
Provision for income taxes
1,923
1,381
Net earnings
$
5,932
$
3,904
51.9
%
Per share data2:
Diluted earnings per share
$
3.41
$
2.18
56.4
%
Weighted-average diluted shares
outstanding
1,738
1,784
(2.6
)%
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
2024
$
10,401
$
1,362
$
22
$
11,785
2023
10,910
1,308
9
12,227
% Change
(4.7
)%
4.1
%
100%+
(3.6
)%
Reconciliation:
For the six months ended June 30,
2023
$
10,910
$
1,308
$
9
$
12,227
Operations
(509
)
54
13
(442
)
For the six months ended June 30,
2024
$
10,401
$
1,362
$
22
$
11,785
Operating Companies Income
(Loss)
Smokeable Products
Oral Tobacco Products
All Other
Total
2024
$
5,246
$
532
$
(172
)
$
5,606
2023
5,349
859
(13
)
6,195
% Change
(1.9
)%
(38.1
)%
(100%+)
(9.5
)%
Reconciliation:
For the six months ended June 30,
2023
$
5,349
$
859
$
(13
)
$
6,195
Tobacco and health and certain other
litigation items - 2023
52
—
—
52
52
—
—
52
NPM Adjustment Items - 2024
6
—
—
6
Asset impairment - 2024
—
(354
)
—
(354
)
Tobacco and health and certain other
litigation items - 2024
(38
)
—
—
(38
)
(32
)
(354
)
—
(386
)
Operations
(123
)
27
(159
)
(255
)
For the six months ended June 30,
2024
$
5,246
$
532
$
(172
)
$
5,606
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,
2024
2023
2024
2023
The segment detail of excise taxes on
products sold is as follows:
Smokeable products
$
908
$
1,041
$
1,742
$
1,969
Oral tobacco products
24
29
49
57
$
932
$
1,070
$
1,791
$
2,026
The segment detail of charges for
resolution expenses related to state settlement agreements included
in cost of sales is as follows:
Smokeable products
$
924
$
1,017
$
1,779
$
1,911
Oral tobacco products
2
—
5
3
$
926
$
1,017
$
1,784
$
1,914
The segment detail of FDA user fees
included in cost of sales is as follows:
Smokeable products
$
64
$
67
$
124
$
130
Oral tobacco products
1
1
2
2
$
65
$
68
$
126
$
132
The detail of (income) losses from
investments in equity securities is as follows:
ABI
$
(121
)
$
(135
)
$
(434
)
$
(340
)
Cronos
2
8
20
43
JUUL
—
—
—
250
$
(119
)
$
(127
)
$
(414
)
$
(47
)
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
2024 Net Earnings
$
3,803
$
2.21
2023 Net Earnings
$
2,117
$
1.19
% Change
79.6
%
85.7
%
Reconciliation:
2023 Net Earnings
$
2,117
$
1.19
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
2024 Acquisition and disposition-related
items
1,882
1.09
2024 Asset impairment
(264
)
(0.15
)
2024 Tobacco and health and certain other
litigation items
(33
)
(0.02
)
2024 ABI-related special items
(19
)
(0.01
)
2024 Cronos-related special items
(2
)
—
2024 Income tax items
(19
)
(0.01
)
Subtotal 2024 special items
1,545
0.90
Fewer shares outstanding
—
0.05
Change in tax rate
11
—
Operations
(99
)
(0.05
)
2024 Net Earnings
$
3,803
$
2.21
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
2024 Reported
$
5,116
$
1,313
$
3,803
$
2.21
Acquisition and disposition-related
items
(2,557
)
(675
)
(1,882
)
(1.09
)
Asset impairment
354
90
264
0.15
Tobacco and health and certain other
litigation items
44
11
33
0.02
ABI-related special items
24
5
19
0.01
Cronos-related special items
3
1
2
—
Income tax items
—
(19
)
19
0.01
2024 Adjusted for Special Items
$
2,984
$
726
$
2,258
$
1.31
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
2024 Reported Net Earnings
$
3,803
$
2.21
2023 Reported Net Earnings
$
2,117
$
1.19
% Change
79.6
%
85.7
%
2024 Net Earnings Adjusted for Special
Items
$
2,258
$
1.31
2023 Net Earnings Adjusted for Special
Items
$
2,346
$
1.31
% Change
(3.8
)%
—
%
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
2024 Net Earnings
$
5,932
$
3.41
2023 Net Earnings
$
3,904
$
2.18
% Change
51.9
%
56.4
%
Reconciliation:
2023 Net Earnings
$
3,904
$
2.18
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
2024 NPM Adjustment Items
5
—
2024 Acquisition and disposition-related
items
1,882
1.09
2024 Asset impairment
(264
)
(0.15
)
2024 Tobacco and health and certain other
litigation items
(52
)
(0.03
)
2024 ABI-related special items
48
0.02
2024 Cronos-related special items
(19
)
(0.01
)
2024 Income tax items
52
0.03
Subtotal 2024 special items
1,652
0.95
Fewer shares outstanding
—
0.06
Change in tax rate
17
0.01
Operations
(201
)
(0.11
)
2024 Net Earnings
$
5,932
$
3.41
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
2024 Reported
$
7,855
$
1,923
$
5,932
$
3.41
NPM Adjustment Items
(6
)
(1
)
(5
)
—
Acquisition and disposition-related
items
(2,557
)
(675
)
(1,882
)
(1.09
)
Asset impairment
354
90
264
0.15
Tobacco and health and certain other
litigation items
68
16
52
0.03
ABI-related special items
(62
)
(14
)
(48
)
(0.02
)
Cronos-related special items
20
1
19
0.01
Income tax items
—
52
(52
)
(0.03
)
2024 Adjusted for Special Items
$
5,672
$
1,392
$
4,280
$
2.46
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
2024 Reported Net Earnings
$
5,932
$
3.41
2023 Reported Net Earnings
$
3,904
$
2.18
% Change
51.9
%
56.4
%
2024 Net Earnings Adjusted for Special
Items
$
4,280
$
2.46
2023 Net Earnings Adjusted for Special
Items
$
4,464
$
2.50
% Change
(4.1
)%
(1.6
)%
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,
2023
(dollars in millions, except per
share data)
(Unaudited)
Earnings before Income
Taxes
Provision for Income
Taxes
Net Earnings
Diluted EPS
2023 Reported
$
10,928
$
2,798
$
8,130
$
4.57
NPM Adjustment Items
(50
)
(12
)
(38
)
(0.02
)
Acquisition, disposition and
integration-related items
35
9
26
0.01
Tobacco and health and certain other
litigation items
430
107
323
0.18
Loss on disposition of JUUL equity
securities
250
—
250
0.14
ABI-related special items
89
19
70
0.03
Cronos-related special items
29
—
29
0.02
Income tax items
—
(32
)
32
0.02
2023 Adjusted for Special Items
$
11,711
$
2,889
$
8,822
$
4.95
Schedule 11
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Balance
Sheets
(dollars in millions)
(Unaudited)
June 30, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
1,799
$
3,686
Inventories
1,174
1,215
Other current assets
567
684
Property, plant and equipment, net
1,620
1,652
Goodwill and other intangible assets,
net
19,993
20,477
Investments in equity securities
8,335
10,011
Other long-term assets
899
845
Total assets
$
34,387
$
38,570
Liabilities and
Stockholders’ Equity (Deficit)
Current portion of long-term debt
$
1,553
$
1,121
Accrued settlement charges
1,320
2,563
Deferred gain from the sale of IQOS System
commercialization rights
—
2,700
Other current liabilities
4,909
4,935
Long-term debt
23,470
25,112
Deferred income taxes
3,281
2,799
Accrued pension costs
127
130
Accrued postretirement health care
costs
1,086
1,079
Other long-term liabilities
1,607
1,621
Total liabilities
37,353
42,060
Total stockholders’ equity (deficit)
attributable to Altria
(3,016
)
(3,540
)
Noncontrolling interest
50
50
Total liabilities and stockholders’
equity (deficit)
$
34,387
$
38,570
Total debt
$
25,023
$
26,233
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
Asset
impairment
General corporate
expenses
Interest and other debt
(income) expense, net
(Income) losses from
investments in equity securities
Gain on the sale of IQOS
System commercialization rights
2024 Special Items - (Income)
Expense
Acquisition and disposition-related
items
—
—
143
—
—
(2,700
)
Asset impairment
—
354
—
—
—
—
Tobacco and health and certain other
litigation items
20
—
24
—
—
—
ABI-related special items
—
—
—
—
24
—
Cronos-related special items
—
—
—
—
3
—
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
—
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
Asset impairment
General corporate
expenses
Interest and other debt
(income) expense, net
(Income) losses from
investments in equity securities
Gain on the sale of IQOS
System commercialization rights
2024 Special Items - (Income)
Expense
NPM Adjustment Items
$
(6
)
$
—
$
—
$
—
$
—
$
—
$
—
Acquisition and disposition-related
items
—
—
—
143
—
(2,700
)
Asset impairment
—
—
354
—
—
—
—
Tobacco and health and certain other
litigation items
—
38
—
30
—
—
—
ABI-related special items
—
—
—
59
3
(124
)
—
Cronos-related special items
—
—
—
—
—
20
—
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
—
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. 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/20240730496966/en/
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