Altria Group announced strong performance from its core tobacco segments in the first quarter of 2020, even as it withdrew its full year 2020 adjusted diluted EPS guidance and 2020–2022 adjusted diluted EPS growth objective due to Covid-19 uncertainty.
The company’s net revenue was up by 13 percent in the first quarter of 2020 over the same period last year.
“The first quarter brought out the best in Altria’s employees as we navigated the dynamic tobacco environment and the unprecedented effects of the Covid-19 pandemic,” said Billy Gifford, Altria’s CEO. “We’ve approached these challenges together by focusing on the health and welfare of our employees, maintaining business continuity and supporting our communities.”
“We had an excellent start to the year, growing our first quarter adjusted diluted EPS by 18.5 percent, driven by the strength of our smokeable and oral tobacco products segments. Due to the uncertainties related to the impact of the Covid-19 pandemic on our diverse business model and economic recovery scenarios, we’re withdrawing our full-year 2020 adjusted diluted EPS guidance and, as a result, we’re also withdrawing our compounded annual adjusted diluted EPS growth objective. We’re continuing to assess the Covid-19 situation and intend to reestablish guidance at the appropriate time.”
“Our dividend is important to our investors and it remains a top priority for us. Our objective continues to be a dividend payout ratio target of approximately 80 percent of adjusted diluted EPS. For 2020, we expect to recommend a quarterly dividend rate to our board that reflects, among other things, our strong cash generation and the strength of our balance sheet.”