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Mar 31, 2021
Altria Q1 2021 Earnings Report
Reported a strong start to the year, with tobacco businesses performing well and progress advancing the non-combustible portfolio.
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
Revenue by Segment
Smokeable Products Revenue
CapyFin.comOral Tobacco Products Revenue
CapyFin.comOther Revenue
CapyFin.com 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