Altria Q1 2021 Earnings Report
Key Takeaways
Altria Group, Inc. reported its 2021 first-quarter business results and reaffirmed its guidance for 2021 full-year adjusted diluted earnings per share (EPS). Net revenues decreased 5.1% to $6.0 billion. Adjusted diluted EPS decreased 1.8% to $1.07.
Altria paid $1.6 billion in dividends in the first quarter.
Altria repurchased 6.9 million shares at an average price of $47.02, for a total cost of $325 million in the first quarter.
PM USA introduced the new IQOS 3 device for sale in all current markets in March.
Altria subsidiaries closed transactions to acquire the remaining 20% of the global on! business for a total of approximately $250 million in December 2020 and April 2021.
Altria
Altria
Altria Revenue by Segment
Forward Guidance
Altria reaffirms its guidance for 2021 full-year adjusted diluted EPS to be in a range of $4.49 to $4.62, representing a growth rate of 3% to 6% from an adjusted diluted EPS base of $4.36 in 2020.
Positive Outlook
- Planned investments in marketplace to expand availability and awareness of non-combustible products.
- Costs associated with building an industry-leading consumer engagement platform that enhances data collection and insights in support of ATC conversion to non-combustible products.
- Increased non-combustible product research and development expense.
- Expects 2021 adjusted diluted EPS growth in the last three quarters of the year.
- Continues to expect its 2021 full-year adjusted effective tax rate will be in a range of 24.5% to 25.5%.
Challenges Ahead
- Conditions related to unemployment rates.
- Conditions related to fiscal stimulus.
- ATC dynamics, including stay-at-home practices, disposable income, purchasing patterns and adoption of non-combustible products.
- Regulatory and legislative (including excise tax) developments.
- The timing and breadth of COVID-19 vaccine administration.
Revenue & Expenses
Visualization of income flow from segment revenue to net income