Altria Q2 2023 Earnings Report
Key Takeaways
Altria Group, Inc. reports its 2023 second-quarter and first-half business results and reaffirms its guidance for 2023 full-year adjusted diluted earnings per share (EPS). In the second quarter and first half, Altria repurchased 10.4 million shares at an average price of $45.37, for a total cost of $472 million. They also completed the acquisition of NJOY and delivered strong business results, growing adjusted diluted EPS by 5% in the first half.
Completed acquisition of NJOY on June 1, 2023, for $2.75 billion in cash.
Received final payment of approximately $1.8 billion from PMI as part of the IQOS transition agreement.
Reaffirms 2023 full-year adjusted diluted EPS guidance in a range of $4.89 to $5.03.
Marlboro retail share of the total cigarette category was 42.1%.
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Altria Revenue by Segment
Forward Guidance
Altria reaffirms its guidance to deliver 2023 full-year adjusted diluted EPS in a range of $4.89 to $5.03, representing a growth rate of 1% to 4% 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
- Planned investments behind the U.S. commercialization of NJOY ACE
- Estimated amortization charges of approximately $50 million related to intangible assets acquired in the NJOY Transaction.
Challenges Ahead
- 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
- Risk of losing access to credit and capital markets
- Risk of downgrade of our credit ratings
Revenue & Expenses
Visualization of income flow from segment revenue to net income