Altria Reports Quarterly Results
Altria Group reported its 2022 third-quarter and nine-months business results and narrowed its guidance for 2022 full-year adjusted diluted earnings per share (EPS).
“This is an exciting moment on our journey toward ‘Moving Beyond Smoking,’” said Billy Gifford, Altria’s CEO, in a statement. “Our tobacco businesses remained resilient during the first nine months of the year, and we continued to reward shareholders while making investments in pursuit of our vision.
“We are optimistic that the actions we have taken to date have strengthened our portfolio in the three major smoke-free categories. We have built a compelling portfolio in heated-tobacco, enhanced our ability to compete in e-vapor and continued to strengthen On!’s position in the oral tobacco category.
“We are narrowing our full-year 2022 guidance and now expect to deliver adjusted diluted EPS in a range of $4.81 to $4.89, representing a growth rate of 4.5 percent to 6 percent from a base of $4.61 in 2021. We believe this range allows us the flexibility to react to marketplace conditions.”
Net revenues for the third quarter decreased 3.5 percent to $6.6 billion, primarily driven by the sale of the company’s former Ste. Michelle wine business in October 2021 and 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 2.2 percent to $5.4 billion.
Reported diluted EPS increased 100 percent-plus to $0.12, primarily driven by lower reported losses from investment in ABI (due primarily to a lower impairment of the company’s investment in ABI), favorable Cronos-related special items, higher reported operating companies income (OCI) and fewer shares outstanding, partially offset by unfavorable changes in the estimated fair value of the company’s investment in Juul (including the corresponding adjustment for a tax valuation allowance).
Adjusted diluted EPS increased 4.9 percent to $1.28, primarily driven by higher adjusted OCI and fewer shares outstanding.
Net revenues for the first nine months decreased 3.9 percent to $19 billion, primarily driven by the sale of the company’s former Ste. Michelle wine business in October 2021 and lower net revenues in the smokeable products segment. Revenues net of excise taxes decreased 2.6 percent to $15.6 billion.
