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Dec 31, 2022
Altria Q4 2022 Earnings Report
Altria's Q4 2022 results were reported, featuring an EPS increase and strategic investments in smoke-free products.
Key Takeaways
Altria reported a net revenue of $6.111 billion for Q4 2022, a decrease of 2.3% compared to Q4 2021. However, the adjusted diluted EPS increased by 8.3% to $1.18. The company also announced a new $1 billion share repurchase program and provided full-year earnings guidance for 2023.
Net revenues decreased by 2.3% to $6.1 billion, primarily driven by lower net revenues in the smokeable products segment.
Reported diluted EPS increased 70.5% to $1.50, primarily driven by favorable income tax items, 2021 Cronos-related special items, higher reported operating companies income (OCI), 2021 ABI-related special items, fewer shares outstanding and favorable interest expense, partially offset by 2022 changes in the estimated fair value of our investment in JUUL.
Adjusted diluted EPS increased 8.3% to $1.18, primarily driven by higher adjusted OCI, fewer shares outstanding and favorable interest expense.
A new $1 billion share repurchase program was authorized, expected to be completed by December 31, 2023.
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 expects 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 a 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
- Expect our 2023 full-year adjusted effective tax rate will be in a range of 24.5% to 25.5%
- We also expect our 2023 capital expenditures to be between $175 million and $225 million and 2023 depreciation and amortization expenses of approximately $230 million.
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
- Lower expected net periodic benefit income due to market factors, including higher interest rates
- Impact of the 2022 completion of the PMCC wind-down
Revenue & Expenses
Visualization of income flow from segment revenue to net income