Altria Group reported net revenues of $26.15 billion in fiscal 2020, up 4.2 percent from 2019. The company attributes the increase to higher net revenues in the smokable products and oral tobacco products segments, partially offset by lower net revenues in the “all-other” category and the wine segment. Revenues net of excise taxes increased 5.3 percent to $20.84 billion.
“Altria delivered outstanding results in 2020 and managed through the challenges presented by the Covid-19 pandemic,” said Altria CEO Billy Gifford. “Our tobacco businesses were resilient, and we made steady progress toward our 10-year vision to responsibly transition adult smokers to a noncombustible future.”
“Our plans for the year ahead include accelerating investments in support of our 10-year vision, which we expect to fund through the continued financial strength of our tobacco businesses. We expect to deliver 2021 full-year adjusted diluted EPS [earnings per share] in a range of $4.49 to $4.62, representing a growth rate of 3 percent to 6 percent from an adjusted diluted EPS base of $4.36 in 2020.”
In a press note, Altria Group highlighted notable developments in key business segments over the past fiscal year.
In December, the U.S. Food and Drug Administration authorized the IQOS 3 device for sale in the U.S. The new device has a longer battery life and a faster re-charging time compared to the currently authorized 2.4 version. Altria subsidiary Philip Morris USA expects to begin selling the new device shortly and that it will be made available across all existing retail channels in Atlanta, Charlotte and Richmond.
In the fourth quarter, Altria’s Helix subsidiary expanded the distribution of On! Nicotine pouches by an additional 22,000 stores. On! is now available in approximately 78,000 stores as of the end of the fourth quarter, an increase of nearly 40 percent from the end of the third quarter and more than five times the store count from the end of 2019.
Helix reached annualized manufacturing capacity for On! of 50 million cans in the fourth quarter. Helix expects unconstrained On! manufacturing capacity for the U.S. market by mid-year 2021.
In November, Altria exercised its right to convert its nonvoting shares in Juul to voting shares. The company said it does not currently intend to exercise its additional governance rights obtained upon share conversion, including the right to elect directors to Juul’s board, or to vote its Juul shares other than as a passive investor, pending the outcome of the U.S. Federal Trade Commission litigation.
Altria said its tobacco businesses have not experienced any material adverse effects associated with governmental actions to restrict consumer movement or business operations amid the Covid-19 pandemic. Most retail stores in which their products are sold have been deemed to be essential businesses by authorities and remain open.