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Mar 31, 2023

Altria Q1 2023 Earnings Report

Altria reported a strong start to 2023 with solid performance in its tobacco businesses and progress towards its Vision.

Key Takeaways

Altria Group, Inc. reported its 2023 first-quarter business results and reaffirmed its guidance for 2023 full-year adjusted diluted earnings per share (EPS). The company delivered strong adjusted diluted EPS growth of 5.4%.

Net revenues decreased by 2.9% to $5.7 billion.

Adjusted diluted EPS increased by 5.4% to $1.18.

The company reaffirmed its guidance to deliver 2023 full-year adjusted diluted EPS in a range of $4.98 to $5.13.

The company paid dividends of $1.7 billion in the first quarter.

Total Revenue
$4.76B
Previous year: $4.82B
-1.2%
EPS
$1.18
Previous year: $1.12
+5.4%
Marlboro Retail Share
42%
Previous year: 48.1%
-12.7%
Gross Profit
$3.33B
Previous year: $3.37B
-1.3%
Cash and Equivalents
$3.91B
Previous year: $5.35B
-26.9%
Free Cash Flow
$2.93B
Previous year: $3.03B
-3.3%
Total Assets
$36.8B
Previous year: $40.2B
-8.5%

Altria

Altria

Altria Revenue by Segment

Forward Guidance

Altria reaffirms its guidance to deliver 2023 full-year adjusted diluted EPS in a range of $4.98 to $5.13, representing a growth rate of 3% to 6% from an adjusted diluted EPS base of $4.84 in 2022.

Positive Outlook

  • Continued smoke-free product research
  • Development and regulatory preparation expenses
  • Enhancement of our digital consumer engagement system
  • Marketplace activities in support of our smoke-free products
  • Lower expected net periodic benefit income due to market factors

Challenges Ahead

  • Conditions related to the economy, including the impact of high inflation, rising interest rates and global supply chain disruptions
  • ATC dynamics, including disposable income, purchasing patterns and adoption of smoke-free products
  • Regulatory and legislative developments
  • Higher interest rates
  • The impact of the 2022 completion of the wind-down of our former financial services business

Revenue & Expenses

Visualization of income flow from segment revenue to net income