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Sep 30, 2024

Altria Q3 2024 Earnings Report

Altria delivered outstanding results driven by smokeable products and oral tobacco segments.

Key Takeaways

Altria reported a slight decrease in net revenues but an increase in both reported and adjusted diluted EPS for Q3 2024. The company reaffirms its full-year earnings guidance and announces a new initiative to modernize processes.

Smokeable products segment delivered solid operating companies income growth.

Oral tobacco products segment maintained profitability with MST brands and momentum with on!.

New Optimize & Accelerate initiative aimed to modernize processes and accelerate progress toward Vision.

Reaffirmed full-year adjusted diluted EPS guidance in a range of $5.07 to $5.15.

Total Revenue
$5.54B
Previous year: $5.28B
+5.0%
EPS
$1.38
Previous year: $1.28
+7.8%
Marlboro Retail Share
41.7%
Previous year: 42.3%
-1.4%
Gross Profit
$3.81B
Previous year: $3.7B
+2.9%
Cash and Equivalents
$1.91B
Previous year: $1.54B
+23.9%
Free Cash Flow
$2.58B
Previous year: $2.91B
-11.4%
Total Assets
$34.2B
Previous year: $36.5B
-6.3%

Altria

Altria

Altria Revenue by Segment

Forward Guidance

Altria reaffirms its guidance to deliver 2024 full-year adjusted diluted EPS in a range of $5.07 to $5.15, representing a growth rate of 2.5% to 4% from a base of $4.95 in 2023.

Positive Outlook

  • Guidance includes the impact of two additional shipping days in 2024.
  • Guidance assumes limited impact on combustible and e-vapor product volumes from enforcement efforts in the illicit e-vapor market.
  • Guidance accounts for a range of scenarios.
  • Guidance includes planned investments in support of our Vision.
  • Expects 2024 full-year adjusted effective tax rate to be in a range of 24% to 25%.

Challenges Ahead

  • External environment remains dynamic.
  • Monitoring conditions related to the economy, including the cumulative impact of inflation.
  • Monitoring adult tobacco consumer dynamics, including purchasing patterns and adoption of smoke-free products.
  • Monitoring illicit e-vapor enforcement.
  • Monitoring regulatory, litigation and legislative developments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income