Altria Group, Inc. (NYSE: MO) today reports our 2022
third-quarter and nine-months business results and narrows our
guidance for 2022 full-year adjusted diluted earnings per share
(EPS).
“This is an exciting moment on our journey towards Moving Beyond
Smoking,” said Billy Gifford, Altria’s Chief Executive Officer.
“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% to 6% from a base of $4.61 in
2021. We believe this range allows us the flexibility to react to
marketplace conditions.”
Altria Headline Financials1
($ in millions, except per share data)
Q3 2022
Change vs. Q3
2021
Q3 YTD 2022
Change vs.
Q3 YTD 2021
Net revenues
$6,550
(3.5)%
$18,985
(3.9)%
Revenues net of excise taxes
$5,412
(2.2)%
$15,605
(2.6)%
Reported tax rate
45.0%
27.4 pp
34.4%
(10.5) pp
Adjusted tax rate
24.9%
– pp
24.9%
– pp
Reported diluted EPS2
$0.12
100%+
$1.69
100%+
Adjusted diluted EPS2
$1.28
4.9%
$3.66
4.0%
1 “Adjusted” financial measures presented in this release
exclude the impact of special items. See “Basis of Presentation”
for more information. 2 “EPS” represents diluted earnings (losses)
per share attributable to Altria.
As previously announced, a conference call with the investment
community and news media will be webcast on October 27, 2022 at
9:00 a.m. Eastern Time. Access to the webcast is available at
www.altria.com/webcasts.
Heated Tobacco Strategy
We recently announced significant updates on our plans to
compete in the heated tobacco category. We announced the execution
of an agreement with Philip Morris International Inc. regarding the
IQOS Tobacco Heating System® and, separately, we announced the
formation of a strategic partnership with JT Group and our expanded
wholly owned heated tobacco portfolio.
Cash Returns to Shareholders and Capital Markets
Activity
Share Repurchase Program
- In the third quarter, we repurchased 8.5 million shares at an
average price of $43.68, for a total cost of $368 million.
- Through the first nine months, we repurchased 29.9 million
shares at an average price of $48.60, for a total cost of
approximately $1.45 billion.
- As of September 30, 2022, we had approximately $375 million
remaining under our existing $3.5 billion share repurchase program,
which we expect to complete by December 31, 2022. Share repurchases
depend on marketplace conditions and other factors, and the program
remains subject to the discretion of our Board of Directors
(Board).
Dividends
- We paid dividends of approximately $1.6 billion in the third
quarter and approximately $4.9 billion in the first nine
months.
- In August, our Board increased our regular quarterly dividend
for the 57th time in the past 53 years. Our current annualized
dividend rate is $3.76 per share, representing a dividend yield of
8.2% as of October 25, 2022.
- We maintain our long-term objective of a dividend payout ratio
target of approximately 80% of our adjusted diluted EPS. Future
dividend payments remain subject to the discretion of our
Board.
Capital Markets Activity
- We retired $1.1 billion of outstanding debt at maturity in
August 2022.
Environmental, Social and Governance (ESG)
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 Corporate Responsibility section of www.altria.com.
- Some of our recent responsibility efforts and recognitions
include the following:
- We have continued to work with retailers to increase adoption
and implementation of age validation technology (AVT) during 2022,
with the goal of supporting responsible retailing across all
tobacco transactions. Through September 2022, we are proud to
announce that AVT has been implemented in more than 136,000 stores,
representing approximately 79% of PM USA volumes.
- The Women’s Business Enterprise National Council recognized our
Supplier Diversity and Corporate Citizenship Departments with the
“America’s Top Corporations: Resiliency Edition” award for
unwavering commitment to Women’s Business Enterprises throughout
2020 and 2021 during the COVID-19 pandemic.
- We were named #6 on Great Place to Work® and Fortune’s list of
Best Workplaces in Manufacturing and Production™ for 2022. This was
our second consecutive appearance on Great Place to Work® and
Fortune’s list.
Macroeconomic and Geopolitical Conditions Impacting Our
Businesses
Impact on Tobacco Business Operations and Impact on Adult
Tobacco Consumers (ATCs)
- To date, our tobacco business operations have not experienced
any material adverse effects associated with the evolving
macroeconomic and geopolitical landscape.
- We continue to monitor the effects of the evolving
macroeconomic environment on ATCs, such as impacts to disposable
income, purchasing behaviors, overall tobacco product expenditures,
mix between premium and discount brand purchases and adoption of
smoke-free products. In the third quarter, ATC discretionary income
levels remained under pressure as elevated gas prices and high
inflation persisted. We believe that ATCs continued to adapt their
purchasing behaviors to manage their spending.
ABI Investment Update
- The adverse macroeconomic and geopolitical landscape has
continued to impact global businesses, and we expect this dynamic
to continue in the near-term. While ABI’s business performance has
been resilient, its business has continued to be impacted by supply
chain constraints across certain markets, foreign exchange rate
fluctuations, inflation, commodity cost headwinds and the Russian
invasion of Ukraine (as evidenced by ABI fully impairing its joint
venture with exposure to Russia and Ukraine in the first quarter of
2022).
- In preparing our financial statements for the period ended
September 30, 2022, we considered the factors discussed above and
our expectation for ABI’s recovery. We continue to believe that
ABI’s share price performance is not reflective of its underlying
long-term equity value and that ABI’s share price will recover.
However, we believe that it will take longer than previously
expected as the macroeconomic and geopolitical factors discussed
above may continue to impact foreign exchange rates and ABI’s
financial results and share price performance in the
near-term.
- As a result of our evaluation of the decline in fair value of
our investment in ABI and in accordance with applicable accounting
guidance, we determined that the decline in fair value of our
investment in ABI as of September 30, 2022 was “other than
temporary.” Therefore, we recorded a non-cash, pre-tax impairment
charge of approximately $2.5 billion for the three and nine months
ended September 30, 2022, reflecting the difference between the
fair value of our investment in ABI using ABI’s share price at
September 30, 2022 and the carrying value of our investment in ABI
at September 30, 2022 (prior to recording the impairment
charge).
JUUL Investment Update
- As previously disclosed, we exercised our option to be released
from our JUUL non-competition obligations on September 29, 2022,
resulting in (i) the permanent termination of our non-competition
obligations to JUUL, (ii) the loss of our JUUL board designation
rights (other than the right to appoint one independent director so
long as our ownership continues to be at least 10%), our preemptive
rights, our consent rights and certain other rights with respect to
our investment in JUUL and (iii) the conversion of our JUUL shares
to single vote common stock, significantly reducing our voting
power.
- While we retain our 35% economic stake in JUUL, we are
exploring all options to build a U.S. Food and Drug Administration
(FDA) authorized portfolio of e-vapor products that will help adult
smokers transition away from cigarettes.
2022 Full-Year Guidance
We narrow our guidance for 2022 full-year adjusted diluted EPS
to be in a range of $4.81 to $4.89, representing a growth rate of
4.5% to 6% from an adjusted diluted EPS base of $4.61 in 2021.
While the 2022 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 impact of high inflation, rising interest rates and
global supply chain disruptions, (ii) ATC dynamics, including
disposable income, purchasing patterns and adoption of smoke-free
products, and (iii) regulatory and legislative developments.
Our 2022 full-year adjusted diluted EPS guidance range includes
planned investments in support of our Vision, such as (i)
enhancement of our digital consumer engagement system, (ii)
increased smoke-free product research, development and regulatory
preparation expenses and (iii) marketplace activities in support of
our smoke-free products. The guidance range also includes
anticipated inflationary increases in MSA expenses and direct and
indirect materials costs and our current expectation that PM USA
will not have access to the IQOS system in 2022.
We expect our 2022 capital expenditures to be between $175
million and $225 million, a change from our previous expectation of
$200 million to $250 million.
Our full-year adjusted diluted EPS guidance range excludes the
impact of certain income and expense items that 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-related and
disposition-related costs, equity investment-related special items
(including any changes in fair value of our equity investment
recorded at fair value and any changes in the fair value of related
warrants and preemptive rights), 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 MSA (such dispute resolutions
are referred to as NPM Adjustment Items). See Table 1 below for the
income and expense items for the first nine months of 2022.
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
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.
ALTRIA GROUP, INC.
See “Basis of Presentation” below for an explanation of
financial measures and reporting segments discussed in this
release.
Financial Performance
Third Quarter
- Net revenues decreased 3.5% to $6.6 billion, primarily driven
by the sale of our 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% to
$5.4 billion.
- Reported diluted EPS increased 100%+ to $0.12, primarily driven
by lower reported losses from our investment in ABI (due primarily
to a lower impairment of our 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 our investment
in JUUL (including the corresponding adjustment for a tax valuation
allowance).
- Adjusted diluted EPS increased 4.9% to $1.28, primarily driven
by higher adjusted OCI and fewer shares outstanding.
First Nine Months
- Net revenues decreased 3.9% to $19.0 billion, primarily driven
by the sale of our 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% to $15.6 billion.
- Reported diluted EPS increased 100%+ to $1.69 primarily driven
by lower reported losses from our investment in ABI (due primarily
to a lower impairment of our investment in ABI), 2021 losses on
early extinguishment of debt, higher reported OCI, fewer shares
outstanding, favorable Cronos-related special items and favorable
interest expense, partially offset by 2022 changes in the estimated
fair value of our investment in JUUL (including the corresponding
adjustment for a tax valuation allowance).
- Adjusted diluted EPS increased 4.0% to $3.66, primarily driven
by fewer shares outstanding, higher adjusted OCI and favorable
interest expense, partially offset by lower adjusted earnings from
our equity investments.
Table 1 - Altria’s Adjusted
Results
Third Quarter
Nine Months Ended September
30,
2022
2021
Change
2022
2021
Change
Reported diluted EPS
$
0.12
$
(1.48
)
100%+
$
1.69
$
0.46
100%+
NPM Adjustment Items
—
(0.02
)
(0.02
)
(0.03
)
Asset impairment, exit, implementation,
acquisition and disposition-related costs
—
0.03
—
0.05
Tobacco and health and certain other
litigation items
0.02
0.04
0.04
0.06
JUUL changes in fair value
0.06
(0.05
)
0.76
—
ABI-related special items
1.10
2.65
1.12
2.60
Cronos-related special items
—
0.05
0.09
0.11
Loss on early extinguishment of debt
—
—
—
0.27
Tax items
(0.02
)
—
(0.02
)
—
Adjusted diluted EPS
$
1.28
$
1.22
4.9
%
$
3.66
$
3.52
4.0
%
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
- In the first nine months of 2022, we recorded pre-tax income of
$60 million (or $0.02 per share) for NPM Adjustment Items.
- In the third quarter and first nine months 2021, we recorded
pre-tax income of $44 million (or $0.02 per share) and $76 million
(or $0.03 per share), respectively, for NPM Adjustment Items and
related interest. For the third quarter and first nine months of
2021, we recorded $21 and $53 million, respectively, as a reduction
to cost of sales in the smokeable products segment, and recorded
$23 million as interest income in both periods.
Asset Impairment, Exit, Implementation, Acquisition and
Disposition-Related Costs
- In the third quarter of 2021, we recorded pre-tax charges of
$61 million (or $0.03 per share), due primarily to charges
associated with the sale of our former Ste. Michelle wine
business.
- In the first nine months 2021, we recorded pre-tax charges of
$117 million (or $0.05 per share), due primarily to charges
associated with the sale of our former Ste. Michelle wine business
and acquisition-related costs for the settlement of an arbitration
related to the 2019 on! transaction.
Tobacco and Health and Certain Other Litigation Items
- In the third quarter and first nine months of 2022, we recorded
pre-tax charges of $43 million (or $0.02 per share) and $101
million (or $0.04 per share), respectively, for tobacco and health
and certain other litigation items and related interest costs.
- In the third quarter and first nine months of 2021, we recorded
pre-tax charges of $105 million (or $0.04 per share) and $148
million (or $0.06 per share), respectively, for tobacco and health
and certain other litigation items and related interest costs.
JUUL Changes in Fair Value
We recorded non-cash, pre-tax unrealized (income) losses from
investments in equity securities as a result of changes in the
estimated fair value of our investment in JUUL consisting of the
following:
Third Quarter
Nine Months Ended September
30,
($ in millions, except per
share data)
2022
2021
2022
2021
(Income) losses from investments in
equity securities
$
100
$
(100
)
$
1,355
$
—
(Earnings) losses per share
$
0.06
$
(0.05
)
$
0.76
$
—
We recorded corresponding adjustments to the JUUL tax valuation
allowance in 2022 and 2021.
ABI-Related Special Items
- In the third quarter and first nine months of 2022, equity
earnings from ABI included net pre-tax losses of $2.5 billion (or
$1.10 per share) and $2.6 billion (or $1.12 per share),
respectively, substantially all of which related to an impairment
of our investment in ABI.
- In the third quarter and first nine months of 2021, equity
earnings from ABI included net pre-tax losses of $6.2 billion (or
$2.65 per share) and $6.1 billion (or $2.60 per share),
respectively, substantially all of which related to an impairment
of our investment in ABI.
The ABI-related special items above include our respective share
of the amounts recorded by ABI and additional adjustments related
to (i) conversion from international financial reporting standards
to GAAP and (ii) adjustments to our investment required under the
equity method of accounting.
Cronos-Related Special Items
We recorded net pre-tax (income) expense consisting of the
following:
Third Quarter
Nine Months Ended September
30,
($ in millions, except per share
data)
2022
2021
2022
2021
(Gain) loss on Cronos-related financial
instruments 1
$
—
$
135
$
14
$
128
(Income) losses from investments in
equity
securities (2)
5
(46
)
166
72
Total Cronos-related special items -
(income) expense
$
5
$
89
$
180
$
200
(Earnings) losses per share
$
—
$
0.05
$
0.09
$
0.11
1 Amounts are related to the non-cash change in the fair value
of the warrant and certain anti-dilution protections. 2 Amounts
include our share of special items recorded by Cronos and
additional adjustments, if required under the equity method of
accounting, related to our investment in Cronos including the $107
million non-cash, pre-tax impairment of our investment in Cronos in
the second quarter of 2022.
We recorded corresponding adjustments to the Cronos tax
valuation allowance in 2022 and 2021 relating to the special
items.
Loss on Early Extinguishment of Debt
- In the first nine months of 2021, we recorded pre-tax losses on
early extinguishment of debt of $649 million (or $0.27 per
share).
Tax Items
- In the third quarter and first nine months of 2022, we recorded
tax items of $42 million (or $0.02 per share) and $33 million (or
$0.02 per share), respectively, due primarily to tax benefits
associated with the release of a valuation allowance related to our
Cronos warrant, partially offset by tax expense for tax reserves
related to the disallowance of certain state tax credits.
SMOKEABLE PRODUCTS
Revenues and OCI
Third Quarter
- Net revenues decreased 1.6%, primarily driven by lower shipment
volume and higher promotional investments, partially offset by
higher pricing. Revenues net of excise taxes increased 0.4%.
- Reported OCI increased 1.4%, primarily driven by higher
pricing, partially offset by lower shipment volume, higher
promotional investments, higher costs and 2021 NPM Adjustment
Items.
- Adjusted OCI increased 1.8%, primarily driven by higher
pricing, partially offset by lower shipment volume, higher
promotional investments and higher costs. Adjusted OCI margins
increased by 0.9 percentage points to 58.9%.
First Nine Months
- Net revenues decreased 1.5%, primarily driven by lower shipment
volume, partially offset by higher pricing and lower promotional
investments. Revenues net of excise taxes increased 0.6%.
- Reported and adjusted OCI increased 2.7% and 2.6%,
respectively, primarily driven by higher pricing and lower
promotional investments, partially offset by lower shipment volume,
higher costs and higher per unit settlement charges. Adjusted OCI
margins increased by 1.2 percentage points to 59.2%.
Table 2 - Smokeable Products: Revenues
and OCI ($ in millions)
Third Quarter
Nine Months Ended September
30,
2022
2021
Change
2022
2021
Change
Net revenues
$
5,882
$
5,975
(1.6
) %
$
17,020
$
17,275
(1.5
) %
Excise taxes
(1,108
)
(1,218
)
(3,289
)
(3,620
)
Revenues net of excise taxes
$
4,774
$
4,757
0.4
%
$
13,731
$
13,655
0.6
%
Reported OCI
$
2,791
$
2,753
1.4
%
$
8,112
$
7,901
2.7
%
NPM Adjustment Items
—
(21
)
(60
)
(53
)
Tobacco and health and certain other
litigation items
21
29
71
72
Adjusted OCI
$
2,812
$
2,761
1.8
%
$
8,123
$
7,920
2.6
%
Adjusted OCI margins 1
58.9
%
58.0
%
0.9 pp
59.2
%
58.0
%
1.2 pp
1 Adjusted OCI margins are calculated as adjusted OCI divided by
revenues net of excise taxes.
Shipment Volume
Third Quarter
- Smokeable products segment reported domestic cigarette shipment
volume decreased 9.2%, primarily driven by the industry’s decline
rate and retail share losses (both of which were impacted by
macroeconomic pressures on ATC disposable income) and other
factors, partially offset by trade inventory movements.
- When adjusted for trade inventory movements, smokeable products
segment domestic cigarette shipment volume decreased by an
estimated 10%.
- When adjusted for trade inventory movements and other factors,
total estimated domestic cigarette industry volume decreased by an
estimated 8%.
- Reported cigar shipment volume increased 3.3%, primarily driven
by trade inventory movements.
First Nine Months
- Smokeable products segment reported domestic cigarette shipment
volume decreased 9.0%, primarily driven by the industry’s decline
rate and retail share losses (both of which were impacted by
macroeconomic pressures on ATC disposable income) and other
factors, partially offset by trade inventory movements.
- When adjusted for trade inventory movements and other factors,
smokeable products segment domestic cigarette shipment volume
decreased by an estimated 9.5%.
- When adjusted for trade inventory movements and other factors,
total estimated domestic cigarette industry volume decreased by an
estimated 7.5%.
- Reported cigar shipment volume decreased 4.0%, driven by trade
inventory movements, macroeconomic pressures on ATC disposable
income and other factors.
Table 3 - Smokeable Products: Reported
Shipment Volume (sticks in millions)
Third Quarter
Nine Months Ended September
30,
2022
2021
Change
2022
2021
Change
Cigarettes:
Marlboro
19,484
21,368
(8.8
) %
57,809
63,122
(8.4
) %
Other premium
997
1,042
(4.3
) %
2,951
3,180
(7.2
) %
Discount
1,364
1,640
(16.8
) %
4,211
5,068
(16.9
) %
Total cigarettes
21,845
24,050
(9.2
) %
64,971
71,370
(9.0
) %
Cigars:
Black & Mild
438
424
3.3
%
1,303
1,356
(3.9
) %
Other
1
1
—
%
3
5
(40.0
) %
Total cigars
439
425
3.3
%
1,306
1,361
(4.0
) %
Total smokeable products
22,284
24,475
(9.0
) %
66,277
72,731
(8.9
) %
Note: Cigarettes volume includes units sold as well as
promotional units, but excludes units sold for distribution to
Puerto Rico, and units sold in U.S. Territories, to overseas
military and by Philip Morris Duty Free Inc., none of which,
individually or in the aggregate, is material to the smokeable
products segment.
Retail Share and Brand Activity
Third Quarter
- Marlboro retail share of the total cigarette category was
42.6%, a decrease of 0.4 share points and 0.1 share point
sequentially, primarily due to increased macroeconomic pressures on
ATC disposable income. However, Marlboro share of the premium
segment grew to 58.4%, an increase of 0.7 share points versus the
prior year and 0.4 share points sequentially.
- The cigarette industry discount retail share increased 1.6
share points to 27.1%, primarily due to the ATC factors mentioned
above.
First Nine Months
- Marlboro retail share of the total cigarette category decreased
0.4 share points to 42.6%, primarily due to increased macroeconomic
pressures on ATC disposable income. However, Marlboro share of the
premium segment grew to 58.1%, an increase of 0.4 share
points.
- The cigarette industry discount retail share increased 1.3
share points to 26.6%, primarily due to the ATC factors mentioned
above.
Table 4 - Smokeable Products:
Cigarettes Retail Share (percent)
Third Quarter
Nine Months Ended September
30,
2022
2021
Percentage point
change
2022
2021
Percentage point
change
Cigarettes:
Marlboro
42.6
%
43.0
%
(0.4
)
42.6
%
43.0
%
(0.4
)
Other premium
2.3
2.3
—
2.3
2.3
—
Discount
3.0
3.5
(0.5
)
3.2
3.5
(0.3
)
Total cigarettes
47.9
%
48.8
%
(0.9
)
48.1
%
48.8
%
(0.7
)
Note: Retail share results for cigarettes are based on data from
IRI/MSAi, a tracking 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 (STARS). This
service is not designed to capture sales through other channels,
including the internet, direct mail and some illicitly
tax-advantaged outlets. It is IRI’s standard practice to
periodically refresh its services, which could restate retail share
results that were previously released in this service.
ORAL TOBACCO PRODUCTS
Revenues and OCI
Third Quarter
- Net revenues increased 7.0%, primarily driven by higher
pricing, partially offset by higher promotional investments in on!.
Revenues net of excise taxes increased 7.7%.
- Reported and adjusted OCI increased 4.9%, primarily driven by
higher pricing, partially offset by higher costs, a higher
percentage of on! shipment volume relative to MST versus the prior
year (mix change) and higher promotional investments in on!.
Adjusted OCI margins declined by 1.8 percentage points to
66.4%.
First Nine Months
- Net revenues were essentially unchanged as higher pricing was
mostly offset by higher promotional investments in on!, lower
shipment volume and mix change. Revenues net of excise taxes
increased 0.5%.
- Reported OCI decreased 0.6%, primarily driven by higher
promotional investments in on!, lower shipment volume, mix change
and higher costs, partially offset by higher pricing and 2021
acquisition-related costs.
- Adjusted OCI decreased 3.4%, primarily driven by higher
promotional investments in on!, lower shipment volume, mix change
and higher costs, partially offset by higher pricing. Adjusted OCI
margins declined by 2.7 percentage points to 68.0%.
Table 5 - Oral Tobacco Products:
Revenues and OCI ($ in millions)
Third Quarter
Nine Months Ended September
30,
2022
2021
Change
2022
2021
Change
Net revenues
$
670
$
626
7.0
%
$
1,948
$
1,945
0.2
%
Excise taxes
(30
)
(32
)
(91
)
(98
)
Revenues net of excise taxes
$
640
$
594
7.7
%
$
1,857
$
1,847
0.5
%
Reported OCI
$
425
$
405
4.9
%
$
1,262
$
1,269
(0.6
) %
Asset impairment, exit, implementation,
acquisition and disposition-related costs
—
—
—
37
Adjusted OCI
$
425
$
405
4.9
%
$
1,262
$
1,306
(3.4
) %
Adjusted OCI margins 1
66.4
%
68.2
%
(1.8) pp
68.0
%
70.7
%
(2.7) pp
1 Adjusted OCI margins are calculated as adjusted OCI divided by
revenues net of excise taxes.
Shipment Volume
Third Quarter
- Oral tobacco products segment reported domestic shipment volume
increased 1.3%, primarily driven by trade inventory movements, the
industry’s growth rate and calendar differences, partially offset
by retail share losses and other factors. When adjusted for trade
inventory movements and calendar differences, oral tobacco products
segment shipment volume decreased by an estimated 2%.
First Nine Months
- Oral tobacco products segment reported domestic shipment volume
decreased 1.8%, primarily driven by retail share losses and trade
inventory movements, partially offset by calendar differences, the
industry’s growth rate and other factors. When adjusted for trade
inventory movements and calendar differences, oral tobacco products
segment shipment volume decreased by an estimated 1.5%.
Total oral tobacco industry volume was essentially unchanged for
the six months ended September 30, 2022, as the growth in oral
nicotine pouches was offset by declining MST volumes
Table 6 - Oral Tobacco Products:
Reported Shipment Volume (cans and packs in millions)
Third Quarter
Nine Months Ended September
30,
2022
2021
Change
2022
2021
Change
Copenhagen
118.2
121.4
(2.6
) %
356.5
378.4
(5.8
) %
Skoal
45.3
47.7
(5.0
) %
136.1
148.2
(8.2
) %
on!
21.0
12.5
68.0
%
59.6
34.6
72.3
%
Other
16.9
17.2
(1.7
) %
51.3
53.1
(3.4
) %
Total oral tobacco products
201.4
198.8
1.3
%
603.5
614.3
(1.8
) %
Note: Volume includes cans and packs sold, as well as
promotional units, but excludes international volume, which is
currently not material to the 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 pack of snus or
one can of oral nicotine pouches, irrespective of the number of
pouches in the pack, is assumed to be equivalent to one can of
MST.
Retail Share and Brand Activity
Third Quarter
- Oral tobacco products segment retail share was 46.2%, and
Copenhagen continued to be the leading oral tobacco brand with a
retail share of 26.7%. In the oral tobacco products segment,
macroeconomic pressures on ATC disposable income resulted in share
declines for MST products, which were partially offset by the share
growth of oral nicotine pouches.
- Total U.S. oral tobacco category share for on! nicotine pouches
grew to 5.2%, an increase of 2.2 percentage points.
First Nine Months
- Oral tobacco products segment retail share was 46.6%, and
Copenhagen continued to be the leading oral tobacco brand with a
retail share of 27.3%. In the oral tobacco products segment,
macroeconomic pressures on ATC disposable income resulted in share
declines for MST products, which were partially offset by the share
growth of oral nicotine pouches.
Total U.S. oral tobacco category share for on! nicotine pouches
grew to 4.8% an increase of 2.6 percentage points.
Table 7 - Oral Tobacco Products: Retail
Share (percent)
Third Quarter
Nine Months Ended September
30,
2022
2021
Percentage point
change
2022
2021
Percentage point
change
Copenhagen
26.7
%
29.2
%
(2.5
)
27.3
%
29.8
%
(2.5
)
Skoal
11.1
12.3
(1.2
)
11.4
12.6
(1.2
)
on!
5.2
3.0
2.2
4.8
2.2
2.6
Other
3.2
3.2
—
3.1
3.2
(0.1
)
Total oral tobacco products
46.2
%
47.7
%
(1.5
)
46.6
%
47.8
%
(1.2
)
Note: The oral tobacco products retail share results exclude
international volume. Retail share results for oral tobacco
products are based on data from IRI InfoScan, 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
is defined by IRI as moist smokeless, snus 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 pack of snus or one can of oral nicotine
pouches, irrespective of the number of pouches in the pack, is
assumed to be equivalent to one can 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 IRI’s standard practice to periodically refresh its
InfoScan services, which could restate retail share results that
were previously released in this service.
Altria’s Profile
We have a leading portfolio of tobacco products for U.S. tobacco
consumers age 21+. Our Vision by 2030 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, and Helix Innovations
LLC (Helix), a leading manufacturer of oral nicotine pouches.
Additionally, we have a majority-owned joint venture, Horizon
Innovations LLC (Horizon), for the U.S. marketing and
commercialization of heated tobacco stick products and, through a
separate agreement, we have the exclusive U.S. commercialization
rights to the IQOS Tobacco Heating System® and Marlboro HeatSticks®
through April 2024.
Our equity investments include Anheuser-Busch InBev SA/NV (ABI),
the world’s largest brewer, Cronos Group Inc. (Cronos), a leading
Canadian cannabinoid company, and JUUL Labs, Inc. (JUUL), a U.S.
based e-vapor company.
The brand portfolios of our tobacco operating companies include
Marlboro®, Black & Mild®, Copenhagen®, Skoal® and on!®.
Trademarks and service marks 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 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 “2022 Full-Year Guidance.” 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 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 investment 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.
Our reportable segments are (i) smokeable products, including
combustible cigarettes and cigars manufactured and sold by PM USA
and Middleton, respectively, and (ii) oral tobacco products,
including MST and snus products manufactured and sold by USSTC, and
oral nicotine pouches sold by Helix. Prior to the sale of Ste.
Michelle Wine Estates Ltd. (Ste. Michelle) on October 1, 2021, wine
produced and/or sold by Ste. Michelle was a reportable segment. We
have included results for innovative tobacco products and Philip
Morris Capital Corporation 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, 2021 and our Quarterly Reports on Form 10-Q.
These factors include the following:
- unfavorable litigation outcomes, including risks associated
with adverse jury and judicial determinations, courts and
arbitrators reaching conclusions at variance with our or any of our
investees’ understanding of applicable law, bonding requirements in
the jurisdictions that do not limit the dollar amount of appeal
bonds and certain challenges to bond cap statutes;
- government (including the FDA) and private sector actions that
impact adult tobacco consumer acceptability of, or access to,
tobacco products;
- tobacco product taxation, including lower tobacco product
consumption levels and potential shifts in adult tobacco consumer
purchases as a result of federal, state and local excise tax
increases, and excise taxes on e-vapor and oral nicotine products
and the impact on adult tobacco consumers’ transition to lower
priced tobacco products;
- unfavorable outcomes of any government investigations of us or
our investees;
- a successful challenge to our tax positions, an increase to the
corporate income tax rate or other changes to federal or state tax
laws;
- the risks related to our and our investees’ international
business operations, including failure to prevent violations of
various United States and foreign laws and regulations such as
foreign privacy laws and laws prohibiting bribery and
corruption;
- the risks associated with health epidemics and pandemics,
including the COVID-19 pandemic and similar outbreaks, such as
their impact on our and our investees’ ability to continue
manufacturing and distributing products (directly or indirectly due
to their impact on suppliers, distributors and distribution chain
service providers) and their impact on macroeconomic conditions
and, in turn, adult tobacco consumer purchasing behavior;
- the failure of our and our investees’ efforts to compete
effectively in their respective markets;
- the growth of the e-vapor category and other innovative tobacco
products, including oral nicotine pouches, contributing to
reductions in cigarette and MST consumption levels and sales
volume;
- our ability to promote brand equity successfully; anticipate
and respond to evolving adult tobacco consumer preferences;
develop, manufacture, market and distribute products that appeal to
adult tobacco consumers; promote productivity; and protect or
enhance margins through cost savings and price increases;
- our failure to develop and commercialize innovative products,
including innovative tobacco products that may reduce the health
risks associated with cigarettes and other traditional tobacco
products, that appeal to adult tobacco consumers;
- changes, including in macroeconomic and geopolitical conditions
(including inflation), that result in shifts in adult tobacco
consumer disposable income and purchasing behavior, including
choosing lower-priced and discount brands;
- 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, including the Russian invasion of Ukraine;
- the risks, including FDA regulatory risks, related to our and
our investees’ reliance on a few significant facilities and a small
number of key suppliers, distributors and distribution chain
service providers, and the risk of an extended disruption at a
facility of, or of service by, a supplier, distributor or
distribution chain service provider of our tobacco subsidiaries or
our investees;
- required or voluntary product recalls or prohibition on the
marketing or sale of our or any of our investees’ products as a
result of various circumstances such as FDA or other regulatory
action or product contamination;
- the failure of our information systems or the information
systems of key suppliers or service providers to function as
intended, or cyber attacks or security breaches;
- our inability to attract and retain the best talent due to the
impact of decreasing social acceptance of tobacco usage, tobacco
control actions and other factors, including current labor market
dynamics;
- impairment losses as a result of the write down of intangible
assets, including goodwill;
- the adverse effect of acquisitions, investments, dispositions
or other events on our credit rating;
- our inability to acquire attractive businesses or make
attractive investments on favorable terms, or at all, or to realize
the anticipated benefits from an acquisition or investment and our
inability to dispose of businesses or investments on favorable
terms or at all;
- the risks related to disruption and uncertainty in the credit
and capital markets, including risk of losing access to these
markets, which may adversely affect our earnings or dividend rate
or both;
- our inability to attract and retain investors due to the impact
of decreasing social acceptance of tobacco usage or unfavorable ESG
ratings;
- the risks generally related to our agreement to assign
exclusive U.S. commercialization rights to the IQOS system to
Philip Morris International Inc. effective April 30, 2024,
including our inability to realize the expected benefits of the
transaction in the expected manner or time frame, or at all, and
the outcome of any legal proceedings or investigations that may be
instituted against the parties or others related to the
transaction;
- the risks generally related to our joint venture with a
subsidiary of JT Group for the U.S. marketing and commercialization
of heated tobacco stick products, including our inability to
realize the expected benefits of the strategic partnership in the
expected manner or time frame, or at all, changes in market and
other conditions resulting in unanticipated delays in the design
and development of future products or the commencement of test
launches, the outcome of any legal proceedings or investigations
that may be instituted against the parties or others related to the
transaction, the failure to meet commercialization milestones and
the inability of the parties to enter into future on terms
acceptable to both parties and in the expected manner or time
frame;
- the risk that any challenge to our investment in JUUL, if
successful, could result in a broad range of resolutions, including
divestiture of the investment or rescission of the
transaction;
- the risks generally related to our investments in JUUL and
Cronos, including our inability to realize the expected benefits of
our investments in the expected time frames, or at all, due to the
risks encountered by our investees in their businesses, such as
operational, competitive, compliance, litigation and reputational
risks, and legislative and regulatory risks at the international,
federal, state and local levels; and changes in the fair value of
our investment in JUUL and impairment of our investment in
Cronos;
- the risks related to our inability to acquire a controlling
interest in JUUL as a result of standstill restrictions or to
control the material decisions of JUUL and restrictions on our
ability to sell or otherwise transfer our shares of JUUL until
December 20, 2024;
- the risks associated with our investment in ABI, including
effects of the COVID-19 pandemic, foreign currency exchange rates
and macroeconomic and geopolitical conditions, including the
Russian invasion of Ukraine, on ABI’s business and the impact on
our earnings from, and carrying value of, our investment in
ABI;
- the risks related to our ownership percentage in ABI decreasing
below certain levels, including additional tax liabilities, a
reduction in the number of directors that we have the right to have
appointed to the ABI board of directors and our potential inability
to use the equity method of accounting for our investment in
ABI;
- the risk of a successful challenge to the tax treatment of our
equity investment in ABI; and
- the risks, including criminal, civil or tax liability, related
to our or Cronos’s failure to comply with applicable laws,
including cannabis laws.
You should understand that it is not possible to predict or
identify all factors and risks. Consequently, you should not
consider the foregoing list 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 (Losses) For the
Quarters Ended September 30, (dollars in millions, except per share
data) (Unaudited)
2022
2021
% Change
Net revenues
$
6,550
$
6,786
(3.5
) %
Cost of sales 1
1,715
1,858
Excise taxes on products 1
1,138
1,255
Gross profit
3,697
3,673
0.7
%
Marketing, administration and research
costs
488
569
Operating companies income
3,209
3,104
3.4
%
Amortization of intangibles
19
18
General corporate expenses
78
135
Operating income
3,112
2,951
5.5
%
Interest and other debt expense, net
271
266
Net periodic benefit income, excluding
service cost
(44
)
(63
)
(Income) losses from investments in equity
securities 1
2,478
5,915
(Gain) loss on Cronos-related financial
instruments
—
135
Earnings (losses) before income taxes
407
(3,302
)
100%+
Provision (benefit) for income taxes
183
(582
)
Net earnings (losses)
224
(2,720
)
100%+
Net (earnings) losses attributable to
noncontrolling interests
—
(2
)
Net earnings (losses) attributable to
Altria
$
224
$
(2,722
)
100%+
Per share data:
Diluted earnings (losses) per share
attributable to Altria
$
0.12
$
(1.48
)
100%+
Weighted-average diluted shares
outstanding
1,799
1,842
(2.3
) %
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.
Schedule 2
ALTRIA GROUP, INC. and
Subsidiaries Selected Financial Data For the Quarters Ended
September 30, (dollars in millions) (Unaudited)
Net Revenues
Smokeable Products
Oral Tobacco Products
Wine
All Other
Total
2022
$
5,882
$
670
$
—
$
(2
)
$
6,550
2021
5,975
626
177
8
6,786
% Change
(1.6
) %
7.0
%
(100.0
) %
(100)%+
(3.5
) %
Reconciliation:
For the quarter ended September 30,
2021
$
5,975
$
626
$
177
$
8
$
6,786
Operations
(93
)
44
(177
)
(10
)
(236
)
For the quarter ended September 30,
2022
$
5,882
$
670
$
—
$
(2
)
$
6,550
Operating Companies Income
(Loss)
Smokeable Products
Oral Tobacco Products
Wine
All Other
Total
2022
$
2,791
$
425
$
—
$
(7
)
$
3,209
2021
2,753
405
(24
)
(30
)
3,104
% Change
1.4
%
4.9
%
100.0
%
76.7
%
3.4
%
Reconciliation:
For the quarter ended September 30,
2021
$
2,753
$
405
$
(24
)
$
(30
)
$
3,104
NPM Adjustment Items - 2021
(21
)
—
—
—
(21
)
Asset impairment, exit, implementation,
acquisition and disposition-related costs - 2021
—
—
51
—
51
Tobacco and health and certain other
litigation items - 2021
29
—
—
—
29
8
—
51
—
59
Tobacco and health and certain other
litigation items - 2022
(21
)
—
—
—
(21
)
(21
)
—
—
—
(21
)
Operations
51
20
(27
)
23
67
For the quarter ended September 30,
2022
$
2,791
$
425
$
—
$
(7
)
$
3,209
Schedule 3
ALTRIA GROUP, INC. and
Subsidiaries Consolidated Statements of Earnings (Losses) For the
Nine Months Ended September 30, (dollars in millions, except per
share data) (Unaudited)
2022
2021
% Change
Net revenues
$
18,985
$
19,758
(3.9
) %
Cost of sales 1
4,869
5,348
Excise taxes on products 1
3,380
3,733
Gross profit
10,736
10,677
0.6
%
Marketing, administration and research
costs
1,389
1,542
Operating companies income
9,347
9,135
2.3
%
Amortization of intangibles
54
53
General corporate expenses
192
255
Operating income
9,101
8,827
3.1
%
Interest and other debt expense, net
832
869
Loss on early extinguishment of debt
—
649
Net periodic benefit income, excluding
service cost
(137
)
(152
)
(Income) losses from investments in equity
securities 1
3,707
5,789
(Gain) loss on Cronos-related financial
instruments
14
128
Earnings (losses) before income taxes
4,685
1,544
100%+
Provision (benefit) for income taxes
1,611
693
Net earnings (losses)
3,074
851
100%+
Net (earnings) losses attributable to
noncontrolling interests
—
—
Net earnings (losses) attributable to
Altria
$
3,074
$
851
100%+
Per share data2:
Diluted earnings (losses) per share
attributable to Altria
$
1.69
$
0.46
100%+
Weighted-average diluted shares
outstanding
1,808
1,849
(2.2
) %
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 (losses) per share
attributable to Altria are computed independently for each period.
Accordingly, the sum of the quarterly earnings (losses) per share
amounts may not agree to the year-to-date amounts.
Schedule 4
ALTRIA GROUP, INC. and
Subsidiaries Selected Financial Data For the Nine Months Ended
September 30, (dollars in millions) (Unaudited)
Net Revenues
Smokeable Products
Oral Tobacco Products
Wine
All Other
Total
2022
$
17,020
$
1,948
$
—
$
17
$
18,985
2021
17,275
1,945
494
44
19,758
% Change
(1.5
) %
0.2
%
(100.0
) %
(61.4
) %
(3.9
) %
Reconciliation:
For the nine months ended September 30,
2021
$
17,275
$
1,945
$
494
$
44
$
19,758
Operations
(255
)
3
(494
)
(27
)
(773
)
For the nine months ended September 30,
2022
$
17,020
$
1,948
$
—
$
17
$
18,985
Operating Companies Income
(Loss)
Smokeable Products
Oral Tobacco Products
Wine
All Other
Total
2022
$
8,112
$
1,262
$
—
$
(27
)
$
9,347
2021
7,901
1,269
21
(56
)
9,135
% Change
2.7
%
(0.6
) %
(100.0
) %
51.8
%
2.3
%
Reconciliation:
For the nine months ended September 30,
2021
$
7,901
$
1,269
$
21
$
(56
)
$
9,135
NPM Adjustment Items - 2021
(53
)
—
—
—
(53
)
Asset impairment, exit, implementation,
acquisition and disposition-related costs - 2021
—
37
52
—
89
Tobacco and health and certain other
litigation items - 2021
72
—
—
—
72
19
37
52
—
108
NPM Adjustment Items - 2022
60
—
—
—
60
Tobacco and health and certain other
litigation items - 2022
(71
)
—
—
—
(71
)
(11
)
—
—
—
(11
)
Operations
203
(44
)
(73
)
29
115
For the nine months ended September 30,
2022
$
8,112
$
1,262
$
—
$
(27
)
$
9,347
Schedule 5
ALTRIA GROUP, INC. and
Subsidiaries Supplemental Financial Data (dollars in millions)
(Unaudited)
For the Quarters Ended
September 30,
For the Nine Months Ended
September 30,
2022
2021
2022
2021
The segment detail of excise taxes on
products sold is as follows:
Smokeable products
$
1,108
$
1,218
$
3,289
$
3,620
Oral tobacco products
30
32
91
98
Wine
—
5
—
14
All other
—
—
—
1
$
1,138
$
1,255
$
3,380
$
3,733
The segment detail of charges for
resolution expenses related to state settlement agreements included
in cost of sales is as follows:
Smokeable products
$
1,053
$
1,116
$
2,986
$
3,183
Oral tobacco products
2
2
7
7
All other
—
—
—
1
$
1,055
$
1,118
$
2,993
$
3,191
The segment detail of FDA user fees
included in cost of sales is
as follows:
Smokeable products
$
67
$
69
$
204
$
206
Oral tobacco products
2
1
4
3
$
69
$
70
$
208
$
209
The detail of (income) losses from
investments in equity securities is as follows:
ABI
$
2,367
$
6,036
$
2,155
$
5,644
Cronos
11
(21
)
197
145
JUUL
100
(100
)
1,355
—
$
2,478
$
5,915
$
3,707
$
5,789
Schedule 6
ALTRIA GROUP, INC. and
Subsidiaries Net Earnings (Losses) and Diluted Earnings (Losses)
Per Share - Attributable to Altria Group, Inc. For the Quarters
Ended September 30, (dollars in millions, except per share data)
(Unaudited)
Net Earnings (Losses)
Diluted EPS
2022 Net Earnings (Losses)
$
224
$
0.12
2021 Net Earnings (Losses)
$
(2,722
)
$
(1.48
)
% Change
100%+
100%+
Reconciliation:
2021 Net Earnings (Losses)
$
(2,722
)
$
(1.48
)
2021 NPM Adjustment Items
(33
)
(0.02
)
2021 Asset impairment, exit,
implementation, acquisition and
disposition-related costs
52
0.03
2021 Tobacco and health and certain other
litigation items
80
0.04
2021 JUUL changes in fair value
(100
)
(0.05
)
2021 ABI-related special items
4,899
2.65
2021 Cronos-related special items
89
0.05
2021 Income tax items
(8
)
—
Subtotal 2021 special items
4,979
2.70
2022 Asset impairment, exit,
implementation, acquisition and
disposition-related costs
(1
)
—
2022 Tobacco and health and certain other
litigation items
(32
)
(0.02
)
2022 JUUL changes in fair value
(100
)
(0.06
)
2022 ABI-related special items
(1,980
)
(1.10
)
2022 Cronos-related special items
(5
)
—
2022 Income tax items
42
0.02
Subtotal 2022 special items
(2,076
)
(1.16
)
Fewer shares outstanding
—
0.03
Change in tax rate
1
—
Operations
42
0.03
2022 Net Earnings (Losses)
$
224
$
0.12
Schedule 7
ALTRIA GROUP, INC. and
Subsidiaries Reconciliation of GAAP and non-GAAP Measures For the
Quarters Ended September 30, (dollars in millions, except per share
data) (Unaudited)
Earnings (Losses) before
Income Taxes
Provision (Benefit) for Income
Taxes
Net Earnings (Losses)
Net Earnings (Losses)
Attributable to Altria
Diluted EPS
2022 Reported
$
407
$
183
$
224
$
224
$
0.12
Asset impairment, exit, implementation,
acquisition and disposition-related costs
1
—
1
1
—
Tobacco and health and certain other
litigation items
43
11
32
32
0.02
JUUL changes in fair value
100
—
100
100
0.06
ABI-related special items
2,507
527
1,980
1,980
1.10
Cronos-related special items
5
—
5
5
—
Income tax items
—
42
(42
)
(42
)
(0.02
)
2022 Adjusted for Special Items
$
3,063
$
763
$
2,300
$
2,300
$
1.28
2021 Reported
$
(3,302
)
$
(582
)
$
(2,720
)
$
(2,722
)
$
(1.48
)
NPM Adjustment Items
(44
)
(11
)
(33
)
(33
)
(0.02
)
Asset impairment, exit, implementation,
acquisition and disposition-related costs
61
9
52
52
0.03
Tobacco and health and certain other
litigation items
105
25
80
80
0.04
JUUL changes in fair value
(100
)
—
(100
)
(100
)
(0.05
)
ABI-related special items
6,200
1,301
4,899
4,899
2.65
Cronos-related special items
89
—
89
89
0.05
Income tax items
—
8
(8
)
(8
)
—
2021 Adjusted for Special Items
$
3,009
$
750
$
2,259
$
2,257
$
1.22
2022 Reported Net Earnings
(Losses)
$
224
$
0.12
2021 Reported Net Earnings
(Losses)
$
(2,722
)
$
(1.48
)
% Change
100%+
100%+
2022 Net Earnings Adjusted for Special
Items
$
2,300
$
1.28
2021 Net Earnings Adjusted for Special
Items
$
2,257
$
1.22
% Change
1.9
%
4.9
%
Schedule 8
ALTRIA GROUP, INC. and
Subsidiaries Net Earnings (Losses) and Diluted Earnings (Losses)
Per Share - Attributable to Altria Group, Inc. For the Nine Months
Ended September 30, (dollars in millions, except per share data)
(Unaudited)
Net Earnings (Losses)
Diluted EPS1
2022 Net Earnings (Losses)
$
3,074
$
1.69
2021 Net Earnings (Losses)
$
851
$
0.46
% Change
100%+
100%+
Reconciliation:
2021 Net Earnings (Losses)
$
851
$
0.46
2021 NPM Adjustment Items
(57
)
(0.03
)
2021 Asset impairment, exit,
implementation, acquisition and
disposition-related costs
95
0.05
2021 Tobacco and health and certain other
litigation items
113
0.06
2021 ABI-related special items
4,828
2.60
2021 Cronos-related special items
205
0.11
2021 Loss on early extinguishment of
debt
496
0.27
2021 Income tax items
(5
)
—
Subtotal 2021 special items
5,675
3.06
2022 NPM Adjustment Items
45
0.02
2022 Asset impairment, exit,
implementation, acquisition and
disposition-related costs
(8
)
—
2022 Tobacco and health and certain other
litigation items
(76
)
(0.04
)
2022 JUUL changes in fair value
(1,355
)
(0.76
)
2022 ABI-related special items
(2,022
)
(1.12
)
2022 Cronos-related special items
(172
)
(0.09
)
2022 Income tax items
33
0.02
Subtotal 2022 special items
(3,555
)
(1.97
)
Fewer shares outstanding
—
0.08
Operations
103
0.06
2022 Net Earnings (Losses)
$
3,074
$
1.69
1
Diluted earnings (losses) per share
attributable to Altria are computed independently for each period.
Accordingly, the sum of the quarterly earnings (losses) 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
Nine Months Ended September 30, (dollars in millions, except per
share data) (Unaudited)
Earnings (Losses) before
Income Taxes
Provision (Benefit) for Income
Taxes
Net Earnings (Losses)
Net Earnings (Losses)
Attributable to Altria
Diluted EPS1
2022 Reported
$
4,685
$
1,611
$
3,074
$
3,074
$
1.69
NPM Adjustment Items
(60
)
(15
)
(45
)
(45
)
(0.02
)
Asset impairment, exit, implementation,
acquisition and disposition-related costs
10
2
8
8
—
Tobacco and health and certain other
litigation items
101
25
76
76
0.04
JUUL changes in fair value
1,355
—
1,355
1,355
0.76
ABI-related special items
2,560
538
2,022
2,022
1.12
Cronos-related special items
180
8
172
172
0.09
Income tax items
—
33
(33
)
(33
)
(0.02
)
2022 Adjusted for Special Items
$
8,831
$
2,202
$
6,629
$
6,629
$
3.66
2021 Reported
$
1,544
$
693
$
851
$
851
$
0.46
NPM Adjustment Items
(76
)
(19
)
(57
)
(57
)
(0.03
)
Asset impairment, exit, implementation,
acquisition and disposition-related costs
117
22
95
95
0.05
Tobacco and health and certain other
litigation items
148
35
113
113
0.06
ABI-related special items
6,111
1,283
4,828
4,828
2.60
Cronos-related special items
200
(5
)
205
205
0.11
Loss on early extinguishment of debt
649
153
496
496
0.27
Income tax items
—
5
(5
)
(5
)
—
2021 Adjusted for Special Items
$
8,693
$
2,167
$
6,526
$
6,526
$
3.52
2022 Reported Net Earnings
(Losses)
$
3,074
$
1.69
2021 Reported Net Earnings
(Losses)
$
851
$
0.46
% Change
100%+
100%+
2022 Net Earnings Adjusted for Special
Items
$
6,629
$
3.66
2021 Net Earnings Adjusted for Special
Items
$
6,526
$
3.52
% Change
1.6
%
4.0
%
1
Diluted earnings (losses) per share
attributable to Altria are computed independently for each period.
Accordingly, the sum of the quarterly earnings (losses) per share
amounts may not agree to the year-to-date amounts.
Schedule 10
ALTRIA GROUP, INC. and
Subsidiaries Reconciliation of GAAP and non-GAAP Measures For the
Year Ended December 31, 2021 (dollars in millions, except per share
data) (Unaudited)
Earnings (Losses) before
Income Taxes
Provision (Benefit) for Income
Taxes
Net Earnings (Losses)
Net Earnings (Losses)
Attributable to Altria
Diluted EPS
2021 Reported
$
3,824
$
1,349
$
2,475
$
2,475
$
1.34
NPM Adjustment Items
(76
)
(19
)
(57
)
(57
)
(0.03
)
Asset impairment, exit, implementation,
acquisition and disposition-related costs
120
21
99
99
0.05
Tobacco and health and certain other
litigation items
182
44
138
138
0.07
ABI-related special items
6,203
1,302
4,901
4,901
2.66
Cronos-related special items
466
(4
)
470
470
0.25
Loss on early extinguishment of debt
649
153
496
496
0.27
Income tax items
—
3
(3
)
(3
)
—
2021 Adjusted for Special Items
$
11,368
$
2,849
$
8,519
$
8,519
$
4.61
Schedule 11
ALTRIA GROUP, INC. and
Subsidiaries Condensed Consolidated Balance Sheets (dollars in
millions) (Unaudited)
September 30, 2022
December 31, 2021
Assets
Cash and cash equivalents
$
2,483
$
4,544
Inventories
1,106
1,194
Other current assets
431
345
Property, plant and equipment, net
1,587
1,553
Goodwill and other intangible assets,
net
17,530
17,483
Investments in equity securities
9,814
13,481
Other long-term assets
1,002
923
Total assets
$
33,953
$
39,523
Liabilities and
Stockholders’ Equity (Deficit)
Current portion of long-term debt
$
1,443
$
1,105
Accrued settlement charges
2,731
3,349
Other current liabilities
3,923
4,125
Long-term debt
24,848
26,939
Deferred income taxes
3,330
3,692
Accrued pension costs
196
200
Accrued postretirement health care
costs
1,436
1,436
Other long-term liabilities
278
283
Total liabilities
38,185
41,129
Total stockholders’ equity (deficit)
(4,232
)
(1,606
)
Total liabilities and stockholders’
equity (deficit)
$
33,953
$
39,523
Total debt
$
26,291
$
28,044
Schedule 12
ALTRIA GROUP, INC. and
Subsidiaries Supplemental Financial Data for Special Items For the
Quarters Ended September 30, (dollars in millions) (Unaudited)
Cost of Sales
Marketing,
administration and research costs
General corporate
expenses
Interest and other debt
expense, net
(Income) losses from
investments in equity securities
(Gain) loss on Cronos-related
financial instruments
2022 Special Items - (Income)
Expense
Asset impairment, exit, implementation,
acquisition and
disposition-related costs
$
—
$
—
$
1
$
—
$
—
$
—
Tobacco and health and certain other
litigation items
—
21
20
2
—
—
JUUL changes in fair value
—
—
—
—
100
—
ABI-related special items
—
—
—
—
2,507
—
Cronos-related special items
—
—
—
—
5
—
2021 Special Items - (Income)
Expense
NPM Adjustment Items
$
(21
)
$
—
$
—
$
(23
)
$
—
$
—
Asset impairment, exit, implementation,
acquisition and
disposition-related costs
—
51
10
—
—
—
Tobacco and health and certain other
litigation items
—
29
70
6
—
—
JUUL changes in fair value
—
—
—
—
(100
)
—
ABI-related special items
—
—
—
—
6,200
—
Cronos-related special items
—
—
—
—
(46
)
135
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
(losses). This schedule is not intended to provide, or reconcile,
non-GAAP financial measures.
Schedule 13
ALTRIA GROUP, INC. and
Subsidiaries Supplemental Financial Data for Special Items For the
Nine Months Ended September 30, (dollars in millions)
(Unaudited)
Cost of Sales
Marketing, administration and
research costs
General corporate
expenses
Interest and other debt
expense, net
Loss on early extinguishment
of debt
(Income) losses from
investments in equity securities
(Gain) loss on Cronos-related
financial instruments
2022 Special Items - (Income)
Expense
NPM Adjustment Items
$
(60
)
$
—
$
—
$
—
$
—
$
—
$
—
Asset impairment, exit, implementation,
acquisition and
disposition-related costs
—
—
10
—
—
—
—
Tobacco and health and certain other
litigation items
—
71
27
3
—
—
—
JUUL changes in fair value
—
—
—
—
—
1,355
—
ABI-related special items
—
—
—
—
—
2,560
—
Cronos-related special items
—
—
—
—
—
166
14
2021 Special Items - (Income)
Expense
NPM Adjustment Items
$
(53
)
$
—
$
—
$
(23
)
$
—
$
—
$
—
Asset impairment, exit, implementation,
acquisition and
disposition-related costs
1
88
28
—
—
—
—
Tobacco and health and certain other
litigation items
—
72
70
6
—
—
—
ABI-related special items
—
—
—
—
—
6,111
—
Cronos-related special items
—
—
—
—
—
72
128
Loss on early extinguishment of debt
—
—
—
—
649
—
—
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
(losses). This schedule is not intended to provide, or reconcile,
non-GAAP financial measures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221026006063/en/
Altria Client Services Investor Relations 804-484-8222
Altria Client Services Media Relations 804-484-8897
Altria (NYSE:MO)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Altria (NYSE:MO)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024