Altria Group, Inc. (NYSE: MO) today reports our 2024
fourth-quarter and full-year business results and provides our
guidance for 2025 full-year adjusted diluted earnings per share
(EPS).
“2024 was another pivotal year for Altria, headlined by
meaningful progress toward our Vision, strong financial results and
significant cash returns to shareholders,” said Billy Gifford,
Altria’s Chief Executive Officer. “Our companies’ leading brands
and talented teams enabled our core tobacco businesses to deliver
solid income growth and margin expansion, while we strategically
invested in our future.”
“We expect to deliver 2025 full-year adjusted diluted EPS in a
range of $5.22 to $5.37. This range represents an adjusted diluted
EPS growth rate of 2% to 5% from a base of $5.12 in 2024.”
Altria Headline Financials1
($ in millions, except per share data)
Q4 2024
Change vs.
Q4 2023
Full Year 2024
Change vs.
Full Year 2023
Net revenues
$5,974
—%
$24,018
(1.9)%
Revenues net of excise taxes
$5,106
1.6%
$20,444
(0.3)%
Reported tax rate
(9.4)%
(34.1) pp
17.5%
(8.1) pp
Adjusted tax rate
24.1%
(0.5) pp
24.3%
(0.4) pp
Reported diluted EPS2
$1.79
54.3%
$6.54
43.1%
Adjusted diluted EPS2
$1.29
9.3%
$5.12
3.4%
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 January 30, 2025 at
9:00 a.m. Eastern Time. Access to the webcast is available at
www.altria.com/webcasts.
NJOY
Business Results
Fourth Quarter:
- NJOY consumables reported shipment volume increased 15.3%
versus the prior year to 12.8 million units.
- NJOY devices reported shipment volume increased 22.2% versus
the prior year to 1.1 million units.
- NJOY retail share of consumables in the U.S. multi-outlet and
convenience channel increased 2.8 share points versus the prior
year to 6.4%.
Full Year:
- NJOY consumables reported shipment volume was 46.6 million
units.
- NJOY devices reported shipment volume was 5.0 million
units.
- NJOY retail share of consumables in the U.S. multi-outlet and
convenience channel was 5.5%.
U.S. International Trade Commission (ITC) Update
- Yesterday, the ITC issued its final determination in JUUL Labs,
Inc.’s (JUUL) case against NJOY.
- The ITC agreed with JUUL’s claims with respect to the four
patents at issue in this case. As a remedy, the ITC issued an
exclusion order and cease-and-desist orders barring the importation
and sale of ACE. The ITC’s decision is currently under a 60-day
review period by the Office of the U.S. Trade Representative, which
could reject the ITC’s decision. If the Trade Representative does
not reject the ITC’s decision, the exclusion order and
cease-and-desist orders would take effect on March 31, 2025, or
earlier if the Trade Representative notifies the ITC of approval
before the 60 days elapse.
- NJOY continues work on its product solution that addresses all
of the patents at issue in the event the ITC’s decision is not
rejected by the Trade Representative.
- The final exclusion order and cease-and-desist orders can be
appealed to the U.S. Court of Appeals for the Federal Circuit, but
the final exclusion order and cease-and-desist orders barring the
importation and sale of ACE would likely not be stayed during the
pendency of such an appeal.
Cash Returns to Shareholders
Share Repurchase Program
- We completed our previously authorized $3.4 billion share
repurchase program. In the fourth quarter, we repurchased 5.8
million shares at an average price of $53.04, for a total cost of
$310 million. For the full year, we repurchased 73.5 million shares
at an average price of $46.26, for a total cost of $3.4
billion.
- Our Board of Directors (Board) authorized a new $1 billion
share repurchase program, which we expect to complete by December
31, 2025. Share repurchases depend on marketplace conditions and
other factors, and the program remains subject to the discretion of
our Board.
Dividends
- We paid dividends of $1.7 billion in the fourth quarter and
$6.8 billion for the full year.
2028 Enterprise Goals
Our 2028 Enterprise Goals and our progress through 2024 are
listed below:
Corporate
- Deliver a mid-single digits adjusted diluted EPS compounded
annual growth rate (CAGR) in 2028 from a $4.84 base in 2022.
- Through 2024, we delivered a reported diluted EPS CAGR of 43.2%
and an adjusted diluted EPS CAGR of 2.9%1 from the 2022 base.
- A progressive dividend goal targeting mid-single digits
dividend per share growth annually through 2028.
- In 2024, we increased our dividend by 4.1%. Future dividend
payments remain subject to the discretion of our Board.
- Target a debt-to-Consolidated EBITDA ratio of approximately
2.0x.
- At year end, our debt-to-Consolidated Net Earnings ratio was
2.2x and our debt-to-Consolidated EBITDA ratio was 2.1x1.
- Maintain our leadership position in the U.S. tobacco space.
- On the strength of our companies’ leading core tobacco brands
Marlboro, Copenhagen and Black & Mild and growing innovative
brands, on! and NJOY, we maintained our leadership position in
2024.
- Maintain a total adjusted operating companies income (OCI)
margin of at least 60% in each year through 2028.
- For 2024, our total reported OCI margin was 58.0% and our total
adjusted OCI margin was 60.3%1.
U.S. Smoke-Free Portfolio
- Grow U.S. smoke-free volumes by at least 35% from our 2022 base
of 800 million units by 2028.
- Our U.S. smoke-free volumes were approximately 821 million
units in 2024, an increase of 2.6% when compared to the 2022
base.
- Approximately double our U.S. smoke-free net revenues to $5
billion from our 2022 base of $2.6 billion, with $2 billion sourced
from innovative smoke-free products.
- In 2024, total U.S. smoke-free net revenues were $2.8 billion
and net revenues from innovative smoke-free products were $0.3
billion.
- In 2024, we estimate the e-vapor category grew by approximately
30% versus the prior year, driven by the growth of illicit
disposable products. We estimate that illicit products now
represent more than 60% of the e-vapor category. Recent enforcement
actions by regulatory agencies have not had a material impact in
curbing the proliferation and sale of illicit disposable e-vapor
products. This dynamic has made the operating environment
challenging for our businesses, which adhere to federal
regulations. We believe this dynamic compromises our ability to
achieve our 2028 smoke-free volume and revenue goals. We are
reassessing these two goals and anticipate providing updated
smoke-free goals when we have more clarity on how the legitimate
e-vapor market may evolve.
- Regarding NJOY, we believe the operating conditions in the
e-vapor market compromise our ability to achieve the targets we
established in connection with our acquisition of NJOY in June 2023
(NJOY Transaction). Our prior targets anticipated NJOY to be
accretive to cash flow in 2025 and accretive to adjusted diluted
EPS in 2026. We also anticipated the return on invested capital for
the NJOY Transaction to exceed our prior weighted-average cost of
capital by 2027.
- In 2023, Helix established a goal to achieve profitability in
2025. Helix achieved profitability in the fourth quarter of 2024,
ahead of its goal.
Long-Term Growth
- Compete internationally in the top innovative oral tobacco
markets and develop a pathway to participate in heated tobacco and
e-vapor markets.
- on! and on! PLUS are competing internationally via e-commerce
and at select retail locations in Sweden and the United
Kingdom.
- We launched SWIC, our heated tobacco capsule product, via
e-commerce in a small-scale test in Great Britain.
- Enter non-nicotine categories with broad commercial
distribution of at least five products by 2028.
- We tested a variety of organic and partner-developed concepts,
products and product formats to garner consumer and marketplace
insights that we expect to inform our non-nicotine strategies. Our
efforts were concentrated on the consumer need states of enhanced
energy, focus, stress relief and relaxation.
- We made a minority investment in Proper Wild, a manufacturer of
clean energy shots. Altria Group Distribution Company is providing
certain sales and distribution services to Proper Wild, and we
expect to achieve broader commercial distribution in 2025.
1See “Basis of Presentation” for more information on these
non-GAAP financial measures. Reconciliations of these non-GAAP
financial measures are included in Schedules 13-15.
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.
- In 2023, we commenced an equity and civil rights assessment
(Assessment) in response to a 2022 shareholder proposal requesting
that we commission a civil rights equity audit. The Assessment was
Altria-led and overseen by an independent external Advisory Review
Board. We completed the Assessment and, in December, published the
third-party assured report on www.altria.com.
- In 2024, we were ranked 3rd among the top 1,000 companies in
the FTSE Russell Index by the Center for Political
Accountability-Zicklin Index in terms of voluntary disclosures of
our political spending. We were recognized as a “trendsetter” in
this area for the 9th consecutive year.
2025 Full-Year Guidance
We expect to deliver 2025 full-year adjusted diluted EPS in a
range of $5.22 to $5.37, representing a growth rate of 2% to 5%
from a base of $5.12 in 2024. Our guidance includes the impact of
one fewer shipping day in 2025, which occurs in the first quarter,
assumes limited impact on combustible and e-vapor product volumes
from enforcement efforts in the illicit e-vapor market and includes
the reinvestment of anticipated cost savings related to our
previously announced Optimize & Accelerate initiative
(Initiative). The guidance range also includes lower expected net
periodic benefit income.
While our 2025 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 product enforcement and (iv)
regulatory, litigation and legislative developments.
Our 2025 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. This guidance range excludes the
per share impacts that we expect to record in 2025 related to
charges associated with our Initiative.
We expect our 2025 full-year adjusted effective tax rate to be
in a range of 23% to 24%, our 2025 capital expenditures to be
between $175 million and $225 million and our 2025 depreciation and
amortization expenses to be approximately $290 million.
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 Master Settlement Agreement (NPM Adjustment Items). See
Table 1 below for the income and expense items for the full-year
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
Fourth Quarter
- Net revenues were essentially unchanged at $6.0 billion as
lower net revenues in the smokeable products segment and the all
other category were mostly offset by higher net revenues in the
oral tobacco products segment. Revenues net of excise taxes
increased 1.6% to $5.1 billion.
- Reported diluted EPS increased 54.3% to $1.79, primarily driven
by favorable income tax items, fewer shares outstanding and higher
reported OCI, which includes costs related to our Initiative.
- Adjusted diluted EPS increased 9.3% to $1.29, primarily driven
by higher adjusted OCI and fewer shares outstanding.
Full Year
- Net revenues decreased 1.9% to $24.0 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 0.3% to $20.4 billion.
- Reported diluted EPS increased 43.1% to $6.54, primarily driven
by the gain on the assignment of the IQOS Tobacco Heating System
commercialization rights to Philip Morris International Inc. (PMI),
favorable income tax items, fewer shares outstanding, 2023 charges
related to our former investment in JUUL and lower tobacco and
health and certain other litigation items. These items were
partially offset by lower reported OCI, which includes a non-cash
impairment of the Skoal trademark and costs related to our
Initiative, and higher costs associated with the NJOY
Transaction.
- Adjusted diluted EPS increased 3.4% to $5.12, primarily driven
by fewer shares outstanding and a lower adjusted tax rate,
partially offset by lower adjusted OCI.
Table 1 - Altria’s Adjusted
Results
Fourth Quarter
Full Year
2024
2023
Change
2024
2023
Change
Reported diluted EPS
$
1.79
$
1.16
54.3
%
$
6.54
$
4.57
43.1
%
NPM Adjustment Items
—
(0.01
)
(0.01
)
(0.02
)
Acquisition, disposition and
integration-related items
—
0.01
(1.08
)
0.01
Asset impairment, exit and implementation
costs
0.03
—
0.18
—
Tobacco and health and certain other
litigation items
—
—
0.04
0.18
Loss on disposition of JUUL equity
securities
—
—
—
0.14
ABI-related special items
0.02
0.02
—
0.03
Cronos-related special items
—
—
0.01
0.02
Income tax items
(0.55
)
—
(0.56
)
0.02
Adjusted diluted EPS
$
1.29
$
1.18
9.3
%
$
5.12
$
4.95
3.4
%
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 6, 7, 8 and 9.
NPM Adjustment Items
For the full-year 2023, we recorded pre-tax income of $50
million (or $0.02 per share) for NPM Adjustment Items and related
interest, including $29 million recorded as a reduction to cost of
sales in the smokeable products segment and $21 million recorded as
interest income.
Acquisition, Disposition and Integration-Related
Items
For the full-year 2024, we recorded net pre-tax income of $2.5
billion (or $1.08 per share) of acquisition, disposition and
integration-related items, primarily related to a pre-tax gain of
$2.7 billion on the assignment of the IQOS Tobacco Heating System
commercialization rights to PMI in April 2024, partially offset by
net pre-tax expenses associated with the NJOY Transaction,
including a pre-tax charge of $140 million related to a change in
the fair value of the contingent payments.
Asset Impairment, Exit and Implementation Costs
In the fourth quarter of 2024, we recorded pre-tax charges of
$68 million (or $0.03 per share) for employee separation costs and
implementation costs related to our Initiative. For the full-year
2024, we recorded pre-tax charges of $422 million (or $0.18 per
share) related to a non-cash, pre-tax charge for our impairment of
the Skoal trademark and employee separation costs and
implementation costs related to our Initiative.
Tobacco and Health and Certain Other Litigation Items
For the full-year 2024, we recorded pre-tax charges of $101
million (or $0.04 per share) for tobacco and health and certain
other litigation items and related interest costs.
For the full-year 2023, we recorded pre-tax charges of $430
million (or $0.18 per share) for tobacco and health and certain
other litigation items and related interest costs. The charges for
the full year include the settlement of certain JUUL-related
litigation.
Loss on Disposition of JUUL Equity Securities
For the full-year 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 fourth quarter of 2024, we recorded net pre-tax expenses
of $41 million (or $0.02 per share) for ABI-related special items,
primarily related to mark-to-market losses and other activities on
certain ABI financial instruments associated with its share
commitments.
For the fourth quarter and full-year 2023, equity earnings from
ABI included net pre-tax losses of $35 million (or $0.02 per share)
and $89 million (or $0.03 per share), respectively, consisting
primarily of a loss on ABI’s sale of certain brands and associated
assets in the United States. The amounts for the full-year 2023
also included mark-to-market losses on certain ABI financial
instruments associated with its share commitments.
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
For the full-year 2023, we recorded pre-tax losses of $29
million (or $0.02 per share) for Cronos-related special items,
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
For the fourth quarter and full-year 2024, we recorded income
tax items of $928 million (or $0.55 per share) and $969 million (or
$0.56 per share), respectively, primarily related to the reversal
of an unrecognized tax benefit resulting in the partial release of
a valuation allowance related to our former investment in JUUL in
connection with an agreement reached in October 2024 with the
Internal Revenue Service. The amounts for the full-year 2024 also
include the partial release of a valuation allowance in connection
with the partial sale of our investment in ABI.
For the full-year 2023, we recorded income tax items of $32
million (or $0.02 per share), due primarily to tax expense
associated with a tax basis adjustment related to our investment in
ABI.
SMOKEABLE PRODUCTS
Revenues and OCI
Fourth Quarter
- Net revenues decreased 0.2%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes increased 1.7%.
- Reported OCI increased 2.3%, primarily driven by higher
pricing, partially offset by lower shipment volume, costs related
to our Initiative, higher promotional investments and higher
selling, general and administrative (SG&A) costs.
- Adjusted OCI increased 5.5%, primarily driven by higher
pricing, partially offset by lower shipment volume, higher
promotional investments and higher SG&A costs. Adjusted OCI
margins increased by 2.2 percentage points to 61.2%.
Full Year
- Net revenues decreased 2.5%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes decreased 0.8%.
- Reported OCI increased 1.4%, primarily driven by higher pricing
and lower SG&A costs, partially offset by lower shipment
volume, higher promotional investments, higher per unit settlement
charges, higher manufacturing costs and costs related to our
Initiative.
- Adjusted OCI increased 2.0%, primarily driven by higher pricing
and lower SG&A costs, partially offset by lower shipment
volume, higher promotional investments, higher per unit settlement
charges and higher manufacturing costs. Adjusted OCI margins
increased by 1.7 percentage points to 61.6%.
Table 2 - Smokeable Products: Revenues
and OCI ($ in millions)
Fourth Quarter
Full Year
2024
2023
Change
2024
2023
Change
Net revenues
$
5,263
$
5,274
(0.2
)%
$
21,204
$
21,756
(2.5
)%
Excise taxes
(839
)
(924
)
(3,469
)
(3,869
)
Revenues net of excise taxes
$
4,424
$
4,350
1.7
%
$
17,735
$
17,887
(0.8
)%
Reported OCI
$
2,638
$
2,578
2.3
%
$
10,821
$
10,670
1.4
%
NPM Adjustment Items
—
(14
)
(29
)
(29
)
Asset impairment, exit and implementation
costs
60
—
60
—
Tobacco and health and certain other
litigation items
11
4
70
69
Adjusted OCI
$
2,709
$
2,568
5.5
%
$
10,922
$
10,710
2.0
%
Reported OCI margins 1
59.6
%
59.3
%
0.3 pp
61.0
%
59.7
%
1.3 pp
Adjusted OCI margins 1
61.2
%
59.0
%
2.2 pp
61.6
%
59.9
%
1.7 pp
1 Reported and adjusted OCI margins are calculated as reported
and adjusted OCI, respectively, divided by revenues net of excise
taxes.
Shipment Volume
Fourth Quarter
- Smokeable products segment reported domestic cigarette shipment
volume decreased 8.8%, primarily driven by the industry’s decline
rate (impacted by the growth of illicit e-vapor products and
continued discretionary income pressures on ATCs) and retail share
losses, partially offset by calendar differences and trade
inventory movements.
- When adjusted for calendar differences and trade inventory
movements, smokeable products segment domestic cigarette shipment
volume decreased by an estimated 11%.
- When adjusted for calendar differences and trade inventory
movements, total estimated domestic cigarette industry volume
decreased by an estimated 8%.
- Reported cigar shipment volume increased 2.9%.
Full Year
- Smokeable products segment reported domestic cigarette shipment
volume decreased 10.2%, primarily driven by the industry’s decline
rate (impacted by the growth of illicit e-vapor products and
continued discretionary income pressures on ATCs), retail share
losses and trade inventory movements, partially offset by calendar
differences.
- When adjusted for calendar differences and trade inventory
movements, smokeable products segment domestic cigarette shipment
volume decreased by an estimated 11%.
- When adjusted for calendar differences and trade inventory
movements, total estimated domestic cigarette industry volume
decreased by an estimated 9%.
- Reported cigar shipment volume decreased 1.5%.
Table 3 - Smokeable Products: Reported
Shipment Volume (sticks in millions)
Fourth Quarter
Full Year
2024
2023
Change
2024
2023
Change
Cigarettes:
Marlboro
15,173
16,462
(7.8
)%
62,584
68,801
(9.0
)%
Other premium
789
859
(8.1
)%
3,186
3,533
(9.8
)%
Discount
631
883
(28.5
)%
2,812
4,002
(29.7
)%
Total cigarettes
16,593
18,204
(8.8
)%
68,582
76,336
(10.2
)%
Cigars:
Black & Mild
430
418
2.9
%
1,750
1,777
(1.5
)%
Other
1
1
—
%
4
3
33.3
%
Total cigars
431
419
2.9
%
1,754
1,780
(1.5
)%
Total smokeable products
17,024
18,623
(8.6
)%
70,336
78,116
(10.0
)%
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
Fourth Quarter
- Marlboro retail share of the total cigarette category was
41.3%, a decrease of 1.0 share point versus the prior year and 0.3
share points sequentially. Marlboro share of the premium segment
was 59.4%, an increase of 0.1 share point versus the prior year and
sequentially.
- The cigarette industry discount retail share was 30.4%, an
increase of 1.7 share points versus the prior year and 0.6 share
points sequentially, primarily due to continued discretionary
income pressures on ATCs.
Full Year
- Marlboro retail share of the total cigarette category was
41.7%, a decrease of 0.5 share points versus the prior year.
Marlboro share of the premium segment was 59.3%, an increase of 0.4
share points versus the prior year.
- The cigarette industry discount retail share was 29.7%, an
increase of 1.3 share points versus the prior year, primarily due
to continued discretionary income pressures on ATCs.
Table 4 - Smokeable Products:
Cigarettes Retail Share (percent)
Fourth Quarter
Full Year
2024
2023
Percentage
point
change
2024
2023
Percentage
point
change
Cigarettes:
Marlboro
41.3
%
42.3
%
(1.0
)
41.7
%
42.2
%
(0.5
)
Other premium
2.2
2.3
(0.1
)
2.2
2.3
(0.1
)
Discount
1.8
2.2
(0.4
)
2.0
2.4
(0.4
)
Total cigarettes
45.3
%
46.8
%
(1.5
)
45.9
%
46.9
%
(1.0
)
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
Fourth Quarter
- Net revenues increased 2.7%, driven by higher pricing,
partially offset by a higher percentage of on! shipment volume
relative to MST versus the prior year (mix change), lower shipment
volume and higher promotional investments. Revenues net of excise
taxes increased 2.5%.
- Reported OCI increased 11.0%, primarily driven by higher
pricing and lower SG&A costs, partially offset by mix change,
lower shipment volume, higher promotional investments and costs
related to our Initiative.
- Adjusted OCI increased 13.0%, primarily driven by higher
pricing and lower SG&A costs, partially offset by mix change,
lower shipment volume and higher promotional investments. Adjusted
OCI margins increased by 6.4 percentage points to 69.5%.
Full Year
- Net revenues increased 4.1%, primarily driven by higher
pricing, partially offset by mix change and lower shipment volume.
Revenues net of excise taxes increased 4.5%.
- Reported OCI decreased 15.9%, primarily driven by a non-cash
impairment of the Skoal trademark, mix change and lower shipment
volume, partially offset by higher pricing.
- Adjusted OCI increased 5.2%, primarily driven by higher
pricing, partially offset by mix change and lower shipment volume.
Adjusted OCI margins increased by 0.4 percentage points to
67.8%.
Table 5 - Oral Tobacco Products:
Revenues and OCI ($ in millions)
Fourth Quarter
Full Year
2024
2023
Change
2024
2023
Change
Net revenues
$
692
$
674
2.7
%
$
2,776
$
2,667
4.1
%
Excise taxes
(29
)
(27
)
(105
)
(112
)
Revenues net of excise taxes
$
663
$
647
2.5
%
$
2,671
$
2,555
4.5
%
Reported OCI
$
453
$
408
11.0
%
$
1,449
$
1,722
(15.9
)%
Asset impairment, exit and implementation
costs
8
—
362
—
Adjusted OCI
$
461
$
408
13.0
%
$
1,811
$
1,722
5.2
%
Reported OCI margins 1
68.3
%
63.1
%
5.2 pp
54.2
%
67.4
%
(13.2) pp
Adjusted OCI margins 1
69.5
%
63.1
%
6.4 pp
67.8
%
67.4
%
0.4 pp
1 Reported and adjusted OCI margins are calculated as reported
and adjusted OCI, respectively, divided by revenues net of excise
taxes.
Shipment Volume
Fourth Quarter
- Oral tobacco products segment reported domestic shipment volume
decreased 0.4%, primarily driven by retail share losses, trade
inventory movements and other factors, partially offset by the
industry’s growth rate and calendar differences. When adjusted for
trade inventory movements and calendar differences, oral tobacco
products segment shipment volume was essentially unchanged.
Full Year
- Oral tobacco products segment reported domestic shipment volume
decreased 1.0%, primarily driven by retail share losses and trade
inventory movements, 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 2%.
- Total oral tobacco industry volume increased by an estimated 8%
over the six months ended December 31, 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)
Fourth Quarter
Full Year
2024
2023
Change
2024
2023
Change
Copenhagen
97.1
106.8
(9.1
)%
401.5
440.1
(8.8
)%
Skoal
35.4
39.8
(11.1
)%
147.0
163.1
(9.9
)%
on!
43.9
30.4
44.4
%
160.3
114.3
40.2
%
Other
15.9
16.1
(1.2
)%
65.9
65.4
0.8
%
Total oral tobacco products
192.3
193.1
(0.4
)%
774.7
782.9
(1.0
)%
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 can of oral
nicotine pouches, irrespective of the number of pouches in the
pack, is assumed to be equivalent to one can or pack of MST.
Retail Share and Brand Activity
Fourth Quarter
- Oral tobacco products segment retail share was 36.8%, as share
declines for MST products were partially offset by oral nicotine
pouch segment share growth.
- Total U.S. oral tobacco category share for on! nicotine pouches
was 8.9%, an increase of 2.0 share points versus the prior year,
and was flat sequentially.
- The U.S. nicotine pouch category grew to 45.7% of the U.S. oral
tobacco category, an increase of 9.6 share points versus the prior
year. In addition, on!’s share of the nicotine pouch category was
19.5%, an increase of 0.4 share points versus the prior year and a
decrease of 0.8 share points sequentially.
Full Year
- Oral tobacco products segment retail share was 37.5%, as share
declines for MST products were partially offset by oral nicotine
pouch segment share growth.
- Total U.S. oral tobacco category share for on! nicotine pouches
was 8.3%, an increase of 1.5 share points versus the prior
year.
- The U.S. nicotine pouch category grew to 42.9% of the U.S. oral
tobacco category, an increase of 11.7 share points versus the prior
year. In addition, on!’s share of the nicotine pouch category was
19.2%, a decrease of 2.6 share points versus the prior year.
Table 7 - Oral Tobacco Products: Retail
Share (percent)
Fourth Quarter
Full Year
2024
2023
Percentage
point
change
2024
2023
Percentage
point
change
Copenhagen
18.1
%
21.7
%
(3.6
)
19.1
%
23.5
%
(4.4
)
Skoal
7.1
8.6
(1.5
)
7.6
9.3
(1.7
)
on!
8.9
6.9
2.0
8.3
6.8
1.5
Other
2.7
2.7
—
2.5
2.9
(0.4
)
Total oral tobacco products
36.8
%
39.9
%
(3.1
)
37.5
%
42.5
%
(5.0
)
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 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 can
of oral nicotine pouches, irrespective of the number of pouches in
the pack, is assumed to be equivalent to one can or pack 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 “2025 Full-Year Guidance.” In addition, our
management reviews the ratio of debt-to-Consolidated EBITDA, which
we use as a factor to determine our ability to access the capital
markets and make investments in pursuit of our Vision. Consolidated
EBITDA is calculated in accordance with our credit agreement and
includes certain adjustments. 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 investments 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 and oral nicotine pouches.
We have included results for NJOY, Horizon, Helix International and
other business activities, all of which consists 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 illicit
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,
illicit disposable e-vapor products and oral nicotine pouch
products) and the sale of products designed to avoid the regulatory
framework for tobacco products, such as products using nicotine
analogues, each of which contributes to reductions in the
consumption levels and shipment volumes of our businesses’
products;
- our failure to develop and 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 ATC 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 the NJOY Transaction 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;
- our ability to recognize the expected cost savings in
connection with the Initiative or successfully reinvest those
savings in our businesses in support of our Vision and 2028
Enterprise Goals, in each case, in the expected manner or time
frame or at all;
- 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
potential 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 manner or 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 to be 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 December
31,
(dollars in millions, except per
share data)
(Unaudited)
2024
2023
% Change
Net revenues
$
5,974
$
5,975
—
%
Cost of sales 1
1,502
1,525
Excise taxes on products 1
868
951
Gross profit
3,604
3,499
3.0
%
Marketing, administration and research
costs
601
570
Asset impairment and exit costs
35
—
Operating companies income
2,968
2,929
1.3
%
Amortization of intangibles
37
41
General corporate expenses
49
92
Operating income
2,882
2,796
3.1
%
Interest and other debt expense, net
255
231
Net periodic benefit income, excluding
service cost
(28
)
(32
)
(Income) losses from investments in equity
securities 1
(122
)
(138
)
Earnings before income taxes
2,777
2,735
1.5
%
(Benefit) provision for income taxes
(262
)
675
Net earnings
$
3,039
$
2,060
47.5
%
Per share data:
Diluted earnings per share
$
1.79
$
1.16
54.3
%
Weighted-average diluted shares
outstanding
1,694
1,767
(4.1
)%
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 December
31,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2024
$
5,263
$
692
$
19
$
5,974
2023
5,274
674
27
5,975
% Change
(0.2
)%
2.7
%
(29.6
)%
—
%
Reconciliation:
For the quarter ended December 31,
2023
$
5,274
$
674
$
27
$
5,975
Operations
(11
)
18
(8
)
(1
)
For the quarter ended December 31,
2024
$
5,263
$
692
$
19
$
5,974
Operating Companies Income
(Loss)
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2024
$
2,638
$
453
$
(123
)
$
2,968
2023
2,578
408
(57
)
2,929
% Change
2.3
%
11.0
%
(100%+)
1.3
%
Reconciliation:
For the quarter ended December 31,
2023
$
2,578
$
408
$
(57
)
$
2,929
NPM Adjustment Items - 2023
(14
)
—
—
(14
)
Tobacco and health and certain other
litigation items - 2023
4
—
—
4
(10
)
—
—
(10
)
Asset impairment, exit and implementation
costs - 2024
(60
)
(8
)
—
(68
)
Tobacco and health and certain other
litigation items - 2024
(11
)
—
—
(11
)
(71
)
(8
)
—
(79
)
Operations
141
53
(66
)
128
For the quarter ended December 31,
2024
$
2,638
$
453
$
(123
)
$
2,968
Schedule 3
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of
Earnings
For the Years Ended December
31,
(dollars in millions, except per
share data)
(Unaudited)
2024
2023
% Change
Net revenues
$
24,018
$
24,483
(1.9
)%
Cost of sales 1
6,077
6,218
Excise taxes on products 1
3,574
3,981
Gross profit
14,367
14,284
0.6
%
Marketing, administration and research
costs
2,122
1,966
Asset impairment and exit costs
389
—
Operating companies income
11,856
12,318
(3.8
)%
Amortization of intangibles
139
128
General corporate expenses
476
643
Operating income
11,241
11,547
(2.7
)%
Interest and other debt expense, net
1,037
989
Net periodic benefit income, excluding
service cost
(102
)
(127
)
(Income) losses from investments in equity
securities 1
(652
)
(243
)
Gain on the sale of IQOS System
commercialization rights
(2,700
)
—
Earnings before income taxes
13,658
10,928
25.0
%
Provision for income taxes
2,394
2,798
Net earnings
$
11,264
$
8,130
38.5
%
Per share data2:
Diluted earnings per share
$
6.54
$
4.57
43.1
%
Weighted-average diluted shares
outstanding
1,718
1,777
(3.3
)%
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 Years Ended December
31,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2024
$
21,204
$
2,776
$
38
$
24,018
2023
21,756
2,667
60
24,483
% Change
(2.5
)%
4.1
%
(36.7
)%
(1.9
)%
Reconciliation:
For the year ended December 31,
2023
$
21,756
$
2,667
$
60
$
24,483
Operations
(552
)
109
(22
)
(465
)
For the year ended December 31,
2024
$
21,204
$
2,776
$
38
$
24,018
Operating Companies Income
(Loss)
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2024
$
10,821
$
1,449
$
(414
)
$
11,856
2023
10,670
1,722
(74
)
12,318
% Change
1.4
%
(15.9
)%
(100%+)
(3.8
)%
Reconciliation:
For the year ended December 31,
2023
$
10,670
$
1,722
$
(74
)
$
12,318
NPM Adjustment Items - 2023
(29
)
—
—
(29
)
Tobacco and health and certain other
litigation items - 2023
69
—
—
69
40
—
—
40
NPM Adjustment Items - 2024
29
—
—
29
Asset impairment, exit and implementation
costs - 2024
(60
)
(362
)
—
(422
)
Tobacco and health and certain other
litigation items - 2024
(70
)
—
—
(70
)
(101
)
(362
)
—
(463
)
Operations
212
89
(340
)
(39
)
For the year ended December 31,
2024
$
10,821
$
1,449
$
(414
)
$
11,856
Schedule 5
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data
(dollars in millions)
(Unaudited)
For the Quarters Ended
December 31,
For the Years Ended
December 31,
2024
2023
2024
2023
The segment detail of excise taxes on
products sold is as follows:
Smokeable products
$
839
$
924
$
3,469
$
3,869
Oral tobacco products
29
27
105
112
$
868
$
951
$
3,574
$
3,981
The segment detail of charges for
resolution expenses related to state settlement agreements included
in cost of sales is as follows:
Smokeable products
$
806
$
879
$
3,460
$
3,711
Oral tobacco products
—
1
8
4
$
806
$
880
$
3,468
$
3,715
The segment detail of FDA user fees
included in cost of sales is as follows:
Smokeable products
$
59
$
66
$
249
$
259
Oral tobacco products
1
1
5
5
$
60
$
67
$
254
$
264
The detail of (income) losses from
investments in equity securities is as follows:
ABI
$
(118
)
$
(138
)
$
(673
)
$
(539
)
Cronos
(4
)
—
21
46
JUUL
—
—
—
250
$
(122
)
$
(138
)
$
(652
)
$
(243
)
Schedule 6
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings
Per Share
For the Quarters Ended December
31,
(dollars in millions, except per
share data)
(Unaudited)
Net Earnings
Diluted EPS
2024 Net Earnings
$
3,039
$
1.79
2023 Net Earnings
$
2,060
$
1.16
% Change
47.5
%
54.3
%
Reconciliation:
2023 Net Earnings
$
2,060
$
1.16
2023 NPM Adjustment Items
(27
)
(0.01
)
2023 Acquisition, disposition and
integration-related items
16
0.01
2023 Tobacco and health and certain other
litigation items
5
—
2023 ABI-related special items
27
0.02
2023 Cronos-related special items
(1
)
—
2023 Income tax items
3
—
Subtotal 2023 special items
23
0.02
2024 Acquisition, disposition and
integration-related items
13
—
2024 Asset impairment, exit and
implementation costs
(51
)
(0.03
)
2024 Tobacco and health and certain other
litigation items
(8
)
—
2024 ABI-related special items
(32
)
(0.02
)
2024 Cronos-related special items
5
—
2024 Income tax items
928
0.55
Subtotal 2024 special items
855
0.50
Fewer shares outstanding
—
0.05
Change in tax rate
12
—
Operations
89
0.06
2024 Net Earnings
$
3,039
$
1.79
Schedule 7
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and
non-GAAP Measures
For the Quarters Ended December
31,
(dollars in millions, except per
share data)
(Unaudited)
Earnings
before Income
Taxes
(Benefit)
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS
2024 Reported
$
2,777
$
(262
)
$
3,039
$
1.79
Acquisition, disposition and
integration-related items
(14
)
(1
)
(13
)
—
Asset impairment, exit and implementation
costs
68
17
51
0.03
Tobacco and health and certain other
litigation items
11
3
8
—
ABI-related special items
41
9
32
0.02
Cronos-related special items
(4
)
1
(5
)
—
Income tax items
—
928
(928
)
(0.55
)
2024 Adjusted for Special Items
$
2,879
$
695
$
2,184
$
1.29
2023 Reported
$
2,735
$
675
$
2,060
$
1.16
NPM Adjustment Items
(35
)
(8
)
(27
)
(0.01
)
Acquisition, disposition and
integration-related items
21
5
16
0.01
Tobacco and health and certain other
litigation items
6
1
5
—
ABI-related special items
35
8
27
0.02
Cronos-related special items
(1
)
—
(1
)
—
Income tax items
—
(3
)
3
—
2023 Adjusted for Special Items
$
2,761
$
678
$
2,083
$
1.18
2024 Reported Net Earnings
$
3,039
$
1.79
2023 Reported Net Earnings
$
2,060
$
1.16
% Change
47.5
%
54.3
%
2024 Net Earnings Adjusted for Special
Items
$
2,184
$
1.29
2023 Net Earnings Adjusted for Special
Items
$
2,083
$
1.18
% Change
4.8
%
9.3
%
Schedule 8
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings
Per Share
For the Years Ended December
31,
(dollars in millions, except per
share data)
(Unaudited)
Net Earnings
Diluted EPS1
2024 Net Earnings
$
11,264
$
6.54
2023 Net Earnings
$
8,130
$
4.57
% Change
38.5
%
43.1
%
Reconciliation:
2023 Net Earnings
$
8,130
$
4.57
2023 NPM Adjustment Items
(38
)
(0.02
)
2023 Acquisition, disposition and
integration-related items
26
0.01
2023 Tobacco and health and certain other
litigation items
323
0.18
2023 Loss on disposition of JUUL equity
securities
250
0.14
2023 ABI-related special items
70
0.03
2023 Cronos-related special items
29
0.02
2023 Income tax items
32
0.02
Subtotal 2023 special items
692
0.38
2024 NPM Adjustment Items
20
0.01
2024 Acquisition, disposition and
integration-related items
1,862
1.08
2024 Asset impairment, exit and
implementation costs
(315
)
(0.18
)
2024 Tobacco and health and certain other
litigation items
(76
)
(0.04
)
2024 ABI-related special items
(2
)
—
2024 Cronos-related special items
(15
)
(0.01
)
2024 Income tax items
969
0.56
Subtotal 2024 special items
2,443
1.42
Fewer shares outstanding
—
0.17
Change in tax rate
47
0.03
Operations
(48
)
(0.03
)
2024 Net Earnings
$
11,264
$
6.54
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 Years Ended December
31,
(dollars in millions, except per
share data)
(Unaudited)
Earnings
before
Income Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS1
2024 Reported
$
13,658
$
2,394
$
11,264
$
6.54
NPM Adjustment Items
(27
)
(7
)
(20
)
(0.01
)
Acquisition, disposition and
integration-related items
(2,527
)
(665
)
(1,862
)
(1.08
)
Asset impairment, exit and implementation
costs
422
107
315
0.18
Tobacco and health and certain other
litigation items
101
25
76
0.04
ABI-related special items
2
—
2
—
Cronos-related special items
18
3
15
0.01
Income tax items
—
969
(969
)
(0.56
)
2024 Adjusted for Special Items
$
11,647
$
2,826
$
8,821
$
5.12
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
2024 Reported Net Earnings
$
11,264
$
6.54
2023 Reported Net Earnings
$
8,130
$
4.57
% Change
38.5
%
43.1
%
2024 Net Earnings Adjusted for Special
Items
$
8,821
$
5.12
2023 Net Earnings Adjusted for Special
Items
$
8,822
$
4.95
% Change
—
%
3.4
%
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
Condensed Consolidated Balance
Sheets
(dollars in millions)
(Unaudited)
December 31, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
3,127
$
3,686
Inventories
1,080
1,215
Other current assets
306
684
Property, plant and equipment, net
1,617
1,652
Goodwill and other intangible assets,
net
19,918
20,477
Investments in equity securities
8,195
10,011
Other long-term assets
934
845
Total assets
$
35,177
$
38,570
Liabilities and
Stockholders’ Equity (Deficit)
Current portion of long-term debt
$
1,527
$
1,121
Accrued settlement charges
2,354
2,563
Deferred gain from the sale of IQOS System
commercialization rights
—
2,700
Other current liabilities
4,900
4,935
Long-term debt
23,399
25,112
Deferred income taxes
3,749
2,799
Accrued pension costs
136
130
Accrued postretirement health care
costs
935
1,079
Other long-term liabilities
365
1,621
Total liabilities
37,365
42,060
Total stockholders’ equity (deficit)
attributable to Altria
(2,238
)
(3,540
)
Noncontrolling interest
50
50
Total liabilities and stockholders’
equity (deficit)
$
35,177
$
38,570
Total debt
$
24,926
$
26,233
Schedule 11
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data for
Special Items
For the Quarters Ended December
31,
(dollars in millions)
(Unaudited)
Cost of
Sales
Marketing,
administration
and research
costs
Asset
impairment
and exit costs
General
corporate
expenses
Interest and
other debt
(income)
expense, net
(Income) losses
from
investments in
equity securities
2024 Special Items - (Income)
Expense
Acquisition, disposition and
integration-related items
$
—
$
—
$
—
$
(14
)
$
—
$
—
Asset impairment, exit and implementation
costs
—
33
35
—
—
—
Tobacco and health and certain other
litigation items
—
11
—
—
—
—
ABI-related special items
—
—
—
—
—
41
Cronos-related special items
—
—
—
—
—
(4
)
2023 Special Items - (Income)
Expense
NPM Adjustment Items
$
(14
)
$
—
$
—
$
—
$
(21
)
$
—
Acquisition, disposition and
integration-related items
—
—
—
21
—
—
Tobacco and health and certain other
litigation items
—
4
—
2
—
—
ABI-related special items
—
—
—
—
—
35
Cronos-related special items
—
—
—
—
—
(1
)
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 12
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data for
Special Items
For the Years Ended December
31,
(dollars in millions)
(Unaudited)
Cost of
Sales
Marketing,
administration
and research
costs
Asset
impairment
and exit
costs
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
$
(29
)
$
—
$
—
$
—
$
2
$
—
$
—
Acquisition, disposition and
integration-related items
—
—
—
173
—
—
(2,700
)
Asset impairment, exit and implementation
costs
—
33
389
—
—
—
—
Tobacco and health and certain other
litigation items
—
70
—
30
1
—
—
ABI-related special items
—
—
—
59
3
(60
)
—
Cronos-related special items
—
—
—
—
—
18
—
2023 Special Items - (Income)
Expense
NPM Adjustment Items
$
(29
)
$
—
$
—
$
—
$
(21
)
$
—
$
—
Acquisition, disposition and
integration-related items
—
—
—
80
(45
)
—
—
Tobacco and health and certain other
litigation items
—
69
—
350
11
—
—
Loss on disposition of JUUL equity
securities
—
—
—
—
—
250
—
ABI-related special items
—
—
—
—
—
89
—
Cronos-related special items
—
—
—
—
—
29
—
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.
Schedule 13
ALTRIA GROUP, INC.
and Subsidiaries
Calculation of Total Debt to
Consolidated EBITDA and Net Debt to Consolidated EBITDA Ratios
For the Twelve Months Ended
December 31, 2024 1
(dollars in millions)
(Unaudited)
Total
Consolidated Net Earnings
$
11,264
Interest and other debt expense, net
1,037
Provision for income taxes
2,394
Depreciation and amortization
286
EBITDA 2
14,981
(Income) loss from investments in equity
securities and noncontrolling interests, net
(652
)
Dividends from less than 50% owned
affiliates
139
Gain on the sale of IQOS System
commercialization rights
(2,700
)
Asset impairment and exit costs
389
Consolidated EBITDA 3
$
12,157
Current portion of long-term debt
$
1,527
Long-term debt
23,399
Total Debt 4
24,926
Cash and cash equivalents 5
3,127
Net Debt 6
$
21,799
Ratios:
Total Debt / Consolidated Net
Earnings
2.2
Total Debt / Consolidated
EBITDA
2.1
Net Debt / Consolidated EBITDA
1.8
1 Calculated as of the end of the
applicable quarter on a rolling four quarters basis.
2 Reflects earnings before interest,
taxes, depreciation and amortization (“EBITDA”).
3 Reflects the term “Consolidated EBITDA”
as defined in Altria’s revolving credit agreement.
4 Reflects total debt as presented on
Altria’s Consolidated Balance Sheet at December 31, 2024. See
Schedule 10.
5 Reflects cash and cash equivalents as
presented on Altria’s Consolidated Balance Sheet at December 31,
2024. See Schedule 10.
6 Reflects total debt, less cash and cash
equivalents at December 31, 2024.
Schedule 14
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of Reported OCI to
Adjusted OCI
For the Year Ended December 31,
2024
(dollars in millions)
(Unaudited)
Smokeable
Products
Oral Tobacco
Products
All Other
Total
Net revenues
$
21,204
$
2,776
$
38
$
24,018
Excise taxes
(3,469
)
(105
)
—
(3,574
)
Revenues net of excise taxes
$
17,735
$
2,671
$
38
$
20,444
Reported operating companies income
(OCI)
$
10,821
$
1,449
$
(414
)
$
11,856
NPM Adjustment Items
(29
)
—
—
(29
)
Asset impairment, exit and implementation
costs
60
362
—
422
Tobacco and health and certain other
litigation items
70
—
—
70
Adjusted OCI
$
10,922
$
1,811
$
(414
)
$
12,319
Reported OCI margins 1
61.0
%
54.2
%
(100+)%
58.0
%
Adjusted OCI margins 1
61.6
%
67.8
%
(100+)%
60.3
%
1 Reported and adjusted OCI margins are
calculated as reported and adjusted OCI, respectively, divided by
revenues net of excise taxes.
Schedule 15
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of Reported
Diluted EPS to Adjusted Diluted EPS
For the Years Ended December 31,
2024 and 2022
(Unaudited)
For the Years Ended December
31,
Compounded
Annual Growth
Rate
2024
2022
Reported diluted EPS
$
6.54
$
3.19
43.2
%
NPM Adjustment Items
(0.01
)
(0.03
)
Acquisition, disposition and
integration-related items
(1.08
)
—
Asset impairment, exit and implementation
costs
0.18
—
Tobacco and health and certain other
litigation items
0.04
0.05
JUUL changes in fair value
—
0.81
ABI-related special items
—
1.12
Cronos-related special items
0.01
0.10
Income tax items
(0.56
)
(0.40
)
Adjusted diluted EPS
$
5.12
$
4.84
2.9
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250129043383/en/
Altria Client Services Investor Relations 804-484-8222
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