Sales down, share up at PM USA

Philip Morris USA’s domestic cigarette shipment volume during the three months to the end of June, at 32,134 million, was down by 5.0 per cent on that of the three months to the end of June 2013, 33,819 million.

Marlboro shipments fell by 4.9 per cent to 27,679 million; shipments of other premium brands fell by 10.3 per cent to 1,829 million; while shipments of discount brands dropped by 1.3 per cent to 2,626 million.

PM USA’s share of the domestic retail cigarette market during the three months to the end of June, at 51.0 per cent, was increased by 0.3 of a percentage point on that of the three months to the end of June 2013. Marlboro’s share, at 44.0 per cent, was up by 0.3 of a percentage point, while the share of its other premium brands was down by 0.2 of a percentage point to 2.9 per cent and the share of the company’s discount brands was increased by 0.2 of a percentage point to 4.1 per cent.

The Altria Group yesterday published its second-quarter and first-half results for 2014.

Middleton’s cigar shipment volume during the three months to the end of June, at 331 million, was increased by 11.1 per cent on that of the three months to the end of June 2013, 298 million. Black & Mild brand shipments were up by 8.8 per cent to 320 million, while shipments of other brands increased from four million to 11 million.

Middleton’s share of the domestic retail cigar market during the three months to the end of June, at 29.4 per cent, was down by 0.2 of a percentage point on that of the three months to the end of June 2013. Black & Mild’s share was down by 0.4 of a percentage point to 29.0 per cent, while the share of other brands was up by 0.2 of a percentage point to 0.4 per cent.

USSTC and PM USA’s combined, domestic smokeless-products shipment-volume during the three months to the end of June, at 203.8 million cans and packs, was up by 1.6 per cent on that of the three months to the end of June 2013, 200.5 million.

Shipments of Copenhagen were up by 7.8 per cent to 115.0 million; those of Skoal were down by 6.1 per cent to 69.3 million; while those of other brands were down by 2.5 per cent to 19.5 million.

USSTC and PM USA’s share of the US domestic market for smokeless products during the three months to the end of June, at 55.1 per cent, was increased by 0.1 of a percentage point on that of the three months to the end of June 2013. Copenhagen’s share was up by 1.5 percentage points to 30.5 per cent; Skoal’s share was down by 1.1 percentage points to 20.6 per cent; while the share of other brands was down by 0.3 of a percentage point to 4.0 per cent.

Meanwhile, PM USA’s cigarette shipment volume during the six months to the end of June, at 60,883 million, was down by 3.8 per cent on that of the six months to the end of June 2013, 63,320 million. Marlboro shipments fell by 3.8 per cent to 52,495 million; shipments of other premium brands fell by 9.5 per cent to 3,458 million, while shipments of discount brands decreased by 0.3 per cent to 4,930 million.

Middleton’s cigar shipment volume during the six months to the end of June, at 605 million, was increased by 6.0 per cent on that of the six months to the end of June 2013, 571 million. Black & Mild brand shipments were up by 4.8 per cent to 590 million, while shipments of other brands increased by 87.5 per cent to 15 million.

USSTC and PM USA’s combined, domestic, smokeless-products shipment-volume during the six months to the end of June, at 389.9 million, was increased by 3.6 per cent on that of the six months to the end of June 2013, 376.2 million. Copenhagen shipments were up by 9.3 per cent to 218.9 million; Skoal shipments were down by 3.5 per cent to 133.3 million; while shipments of other brands were down by 0.3 per cent to 37.7 million.

Altria’s second-quarter reported diluted earnings per share (EPS) increased by 1.6 per cent to $0.64, and its second-quarter adjusted diluted EPS, which excludes the impact of special items, increased by 4.8 per cent to $0.65

Altria’s first-half reported diluted EPS decreased by 6.8 per cent to $1.23, and its first-half adjusted diluted EPS increased by 5.2 per cent to $1.22.

“During the first six months of 2014, Altria grew adjusted diluted EPS by 5.2 per cent behind solid performance by our companies’ leading premium brands and the strength of our diverse business model,” said Marty Barrington, Altria’s chairman and CEO.

“Our companies are delivering against their strategies and their full-year plans are on track. We thus are tightening our guidance and now expect to deliver full-year adjusted diluted EPS growth in a range of 7 per cent to 9 per cent.”

“We’re also pleased with our progress in innovative products. Nu Mark began its national expansion of MarkTen in June and is achieving strong distribution.

“Nu Mark also continues to integrate Green Smoke into its business platform, beginning with its supply chain capabilities.”