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    Altria Reports 2024 Fourth-Quarter and Full-Year Results; Provides 2025 Full-Year Earnings Guidance; Announces New $1 Billion Share Repurchase Program

    1/30/25 7:00:00 AM ET
    $MO
    Medicinal Chemicals and Botanical Products
    Health Care
    Get the next $MO alert in real time by email

    Altria Group, Inc. (NYSE:MO) today reports our 2024 fourth-quarter and full-year business results and provides our guidance for 2025 full-year adjusted diluted earnings per share (EPS).

    "2024 was another pivotal year for Altria, headlined by meaningful progress toward our Vision, strong financial results and significant cash returns to shareholders," said Billy Gifford, Altria's Chief Executive Officer. "Our companies' leading brands and talented teams enabled our core tobacco businesses to deliver solid income growth and margin expansion, while we strategically invested in our future."

    "We expect to deliver 2025 full-year adjusted diluted EPS in a range of $5.22 to $5.37. This range represents an adjusted diluted EPS growth rate of 2% to 5% from a base of $5.12 in 2024."

    Altria Headline Financials1

    ($ in millions, except per share data)

    Q4 2024

    Change vs.

    Q4 2023

     

    Full Year 2024

    Change vs.

    Full Year 2023

    Net revenues

    $5,974

    —%

     

    $24,018

    (1.9)%

    Revenues net of excise taxes

    $5,106

    1.6%

     

    $20,444

    (0.3)%

     

     

     

     

     

     

    Reported tax rate

    (9.4)%

    (34.1) pp

     

    17.5%

    (8.1) pp

    Adjusted tax rate

    24.1%

    (0.5) pp

     

    24.3%

    (0.4) pp

     

     

     

     

     

     

    Reported diluted EPS2

    $1.79

    54.3%

     

    $6.54

    43.1%

    Adjusted diluted EPS2

    $1.29

    9.3%

     

    $5.12

    3.4%

    1 "Adjusted" financial measures presented in this release exclude the impact of special items. See "Basis of Presentation" for more information and see the schedules to this press release for reconciliations to corresponding GAAP measures.

    2 "EPS" represents diluted earnings per share.

    As previously announced, a conference call with the investment community and news media will be webcast on January 30, 2025 at 9:00 a.m. Eastern Time. Access to the webcast is available at www.altria.com/webcasts.

    NJOY

    Business Results

    Fourth Quarter:

    • NJOY consumables reported shipment volume increased 15.3% versus the prior year to 12.8 million units.
    • NJOY devices reported shipment volume increased 22.2% versus the prior year to 1.1 million units.
    • NJOY retail share of consumables in the U.S. multi-outlet and convenience channel increased 2.8 share points versus the prior year to 6.4%.

    Full Year:

    • NJOY consumables reported shipment volume was 46.6 million units.
    • NJOY devices reported shipment volume was 5.0 million units.
    • NJOY retail share of consumables in the U.S. multi-outlet and convenience channel was 5.5%.

    U.S. International Trade Commission (ITC) Update

    • Yesterday, the ITC issued its final determination in JUUL Labs, Inc.'s (JUUL) case against NJOY.
      • The ITC agreed with JUUL's claims with respect to the four patents at issue in this case. As a remedy, the ITC issued an exclusion order and cease-and-desist orders barring the importation and sale of ACE. The ITC's decision is currently under a 60-day review period by the Office of the U.S. Trade Representative, which could reject the ITC's decision. If the Trade Representative does not reject the ITC's decision, the exclusion order and cease-and-desist orders would take effect on March 31, 2025, or earlier if the Trade Representative notifies the ITC of approval before the 60 days elapse.
      • NJOY continues work on its product solution that addresses all of the patents at issue in the event the ITC's decision is not rejected by the Trade Representative.
      • The final exclusion order and cease-and-desist orders can be appealed to the U.S. Court of Appeals for the Federal Circuit, but the final exclusion order and cease-and-desist orders barring the importation and sale of ACE would likely not be stayed during the pendency of such an appeal.

    Cash Returns to Shareholders

    Share Repurchase Program

    • We completed our previously authorized $3.4 billion share repurchase program. In the fourth quarter, we repurchased 5.8 million shares at an average price of $53.04, for a total cost of $310 million. For the full year, we repurchased 73.5 million shares at an average price of $46.26, for a total cost of $3.4 billion.
    • Our Board of Directors (Board) authorized a new $1 billion share repurchase program, which we expect to complete by December 31, 2025. Share repurchases depend on marketplace conditions and other factors, and the program remains subject to the discretion of our Board.

    Dividends

    • We paid dividends of $1.7 billion in the fourth quarter and $6.8 billion for the full year.

    2028 Enterprise Goals

    Our 2028 Enterprise Goals and our progress through 2024 are listed below:

    Corporate

    • Deliver a mid-single digits adjusted diluted EPS compounded annual growth rate (CAGR) in 2028 from a $4.84 base in 2022.
      • Through 2024, we delivered a reported diluted EPS CAGR of 43.2% and an adjusted diluted EPS CAGR of 2.9%1 from the 2022 base.
    • A progressive dividend goal targeting mid-single digits dividend per share growth annually through 2028.
      • In 2024, we increased our dividend by 4.1%. Future dividend payments remain subject to the discretion of our Board.
    • Target a debt-to-Consolidated EBITDA ratio of approximately 2.0x.
      • At year end, our debt-to-Consolidated Net Earnings ratio was 2.2x and our debt-to-Consolidated EBITDA ratio was 2.1x1.
    • Maintain our leadership position in the U.S. tobacco space.
      • On the strength of our companies' leading core tobacco brands Marlboro, Copenhagen and Black & Mild and growing innovative brands, on! and NJOY, we maintained our leadership position in 2024.
    • Maintain a total adjusted operating companies income (OCI) margin of at least 60% in each year through 2028.
      • For 2024, our total reported OCI margin was 58.0% and our total adjusted OCI margin was 60.3%1.

    U.S. Smoke-Free Portfolio

    • Grow U.S. smoke-free volumes by at least 35% from our 2022 base of 800 million units by 2028.
      • Our U.S. smoke-free volumes were approximately 821 million units in 2024, an increase of 2.6% when compared to the 2022 base.
    • Approximately double our U.S. smoke-free net revenues to $5 billion from our 2022 base of $2.6 billion, with $2 billion sourced from innovative smoke-free products.
      • In 2024, total U.S. smoke-free net revenues were $2.8 billion and net revenues from innovative smoke-free products were $0.3 billion.
    • In 2024, we estimate the e-vapor category grew by approximately 30% versus the prior year, driven by the growth of illicit disposable products. We estimate that illicit products now represent more than 60% of the e-vapor category. Recent enforcement actions by regulatory agencies have not had a material impact in curbing the proliferation and sale of illicit disposable e-vapor products. This dynamic has made the operating environment challenging for our businesses, which adhere to federal regulations. We believe this dynamic compromises our ability to achieve our 2028 smoke-free volume and revenue goals. We are reassessing these two goals and anticipate providing updated smoke-free goals when we have more clarity on how the legitimate e-vapor market may evolve.
    • Regarding NJOY, we believe the operating conditions in the e-vapor market compromise our ability to achieve the targets we established in connection with our acquisition of NJOY in June 2023 (NJOY Transaction). Our prior targets anticipated NJOY to be accretive to cash flow in 2025 and accretive to adjusted diluted EPS in 2026. We also anticipated the return on invested capital for the NJOY Transaction to exceed our prior weighted-average cost of capital by 2027.
    • In 2023, Helix established a goal to achieve profitability in 2025. Helix achieved profitability in the fourth quarter of 2024, ahead of its goal.

    Long-Term Growth

    • Compete internationally in the top innovative oral tobacco markets and develop a pathway to participate in heated tobacco and e-vapor markets.
      • on! and on! PLUS are competing internationally via e-commerce and at select retail locations in Sweden and the United Kingdom.
      • We launched SWIC, our heated tobacco capsule product, via e-commerce in a small-scale test in Great Britain.
    • Enter non-nicotine categories with broad commercial distribution of at least five products by 2028.
      • We tested a variety of organic and partner-developed concepts, products and product formats to garner consumer and marketplace insights that we expect to inform our non-nicotine strategies. Our efforts were concentrated on the consumer need states of enhanced energy, focus, stress relief and relaxation.
      • We made a minority investment in Proper Wild, a manufacturer of clean energy shots. Altria Group Distribution Company is providing certain sales and distribution services to Proper Wild, and we expect to achieve broader commercial distribution in 2025.

    1See "Basis of Presentation" for more information on these non-GAAP financial measures. Reconciliations of these non-GAAP financial measures are included in Schedules 13-15.

    Environmental, Social and Governance

    Our Corporate Responsibility Focus Areas are: (i) reduce the harm of tobacco products, (ii) prevent underage use, (iii) protect the environment, (iv) drive responsibility through our value chain, (v) support our people and communities and (vi) engage and lead responsibly. Our corporate responsibility reports are available on the Responsibility section of www.altria.com.

    • In 2023, we commenced an equity and civil rights assessment (Assessment) in response to a 2022 shareholder proposal requesting that we commission a civil rights equity audit. The Assessment was Altria-led and overseen by an independent external Advisory Review Board. We completed the Assessment and, in December, published the third-party assured report on www.altria.com.
    • In 2024, we were ranked 3rd among the top 1,000 companies in the FTSE Russell Index by the Center for Political Accountability-Zicklin Index in terms of voluntary disclosures of our political spending. We were recognized as a "trendsetter" in this area for the 9th consecutive year.

    2025 Full-Year Guidance

    We expect to deliver 2025 full-year adjusted diluted EPS in a range of $5.22 to $5.37, representing a growth rate of 2% to 5% from a base of $5.12 in 2024. Our guidance includes the impact of one fewer shipping day in 2025, which occurs in the first quarter, assumes limited impact on combustible and e-vapor product volumes from enforcement efforts in the illicit e-vapor market and includes the reinvestment of anticipated cost savings related to our previously announced Optimize & Accelerate initiative (Initiative). The guidance range also includes lower expected net periodic benefit income.

    While our 2025 full-year adjusted diluted EPS guidance accounts for a range of scenarios, the external environment remains dynamic. We will continue to monitor conditions related to (i) the economy, including the cumulative impact of inflation, (ii) adult tobacco consumer (ATC) dynamics, including purchasing patterns and adoption of smoke-free products, (iii) illicit product enforcement and (iv) regulatory, litigation and legislative developments.

    Our 2025 full-year adjusted diluted EPS guidance range includes planned investments in support of our Vision, such as (i) marketplace activities in support of our smoke-free products and (ii) continued smoke-free product research, development and regulatory preparation expenses. This guidance range excludes the per share impacts that we expect to record in 2025 related to charges associated with our Initiative.

    We expect our 2025 full-year adjusted effective tax rate to be in a range of 23% to 24%, our 2025 capital expenditures to be between $175 million and $225 million and our 2025 depreciation and amortization expenses to be approximately $290 million.

    Our full-year adjusted diluted EPS guidance range and full-year forecast for our adjusted effective tax rate exclude the impact of certain income and expense items that our management believes are not part of underlying operations. These items may include, for example, loss on early extinguishment of debt, restructuring charges, asset impairment charges, acquisition, disposition and integration-related items, equity investment-related special items, certain income tax items, charges associated with tobacco and health and certain other litigation items, and resolutions of certain non-participating manufacturer (NPM) adjustment disputes under the Master Settlement Agreement (NPM Adjustment Items). See Table 1 below for the income and expense items for the full-year 2024.

    Our management cannot estimate on a forward-looking basis the impact of certain income and expense items, including those items noted in the preceding paragraph, on our reported diluted EPS or our effective tax rate because these items, which could be significant, may be unusual or infrequent, are difficult to predict and may be highly variable. As a result, we do not provide a corresponding U.S. generally accepted accounting principles (GAAP) measure for, or reconciliation to, our adjusted diluted EPS guidance or our adjusted effective tax rate forecast.

    ALTRIA GROUP, INC.

    See "Basis of Presentation" below for an explanation of financial measures and reporting segments discussed in this release.

    Financial Performance

    Fourth Quarter

    • Net revenues were essentially unchanged at $6.0 billion as lower net revenues in the smokeable products segment and the all other category were mostly offset by higher net revenues in the oral tobacco products segment. Revenues net of excise taxes increased 1.6% to $5.1 billion.
    • Reported diluted EPS increased 54.3% to $1.79, primarily driven by favorable income tax items, fewer shares outstanding and higher reported OCI, which includes costs related to our Initiative.
    • Adjusted diluted EPS increased 9.3% to $1.29, primarily driven by higher adjusted OCI and fewer shares outstanding.

    Full Year

    • Net revenues decreased 1.9% to $24.0 billion, primarily driven by lower net revenues in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment. Revenues net of excise taxes decreased 0.3% to $20.4 billion.
    • Reported diluted EPS increased 43.1% to $6.54, primarily driven by the gain on the assignment of the IQOS Tobacco Heating System commercialization rights to Philip Morris International Inc. (PMI), favorable income tax items, fewer shares outstanding, 2023 charges related to our former investment in JUUL and lower tobacco and health and certain other litigation items. These items were partially offset by lower reported OCI, which includes a non-cash impairment of the Skoal trademark and costs related to our Initiative, and higher costs associated with the NJOY Transaction.
    • Adjusted diluted EPS increased 3.4% to $5.12, primarily driven by fewer shares outstanding and a lower adjusted tax rate, partially offset by lower adjusted OCI.

    Table 1 - Altria's Adjusted Results

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Fourth Quarter

     

    Full Year

     

    2024

    2023

    Change

     

    2024

    2023

    Change

    Reported diluted EPS

    $

    1.79

     

    $

    1.16

     

    54.3

    %

     

    $

    6.54

     

    $

    4.57

     

    43.1

    %

    NPM Adjustment Items

     

    —

     

     

    (0.01

    )

     

     

     

    (0.01

    )

     

    (0.02

    )

     

    Acquisition, disposition and integration-related items

     

    —

     

     

    0.01

     

     

     

     

    (1.08

    )

     

    0.01

     

     

    Asset impairment, exit and implementation costs

     

    0.03

     

     

    —

     

     

     

     

    0.18

     

     

    —

     

     

    Tobacco and health and certain other litigation items

     

    —

     

     

    —

     

     

     

     

    0.04

     

     

    0.18

     

     

    Loss on disposition of JUUL equity securities

     

    —

     

     

    —

     

     

     

     

    —

     

     

    0.14

     

     

    ABI-related special items

     

    0.02

     

     

    0.02

     

     

     

     

    —

     

     

    0.03

     

     

    Cronos-related special items

     

    —

     

     

    —

     

     

     

     

    0.01

     

     

    0.02

     

     

    Income tax items

     

    (0.55

    )

     

    —

     

     

     

     

    (0.56

    )

     

    0.02

     

     

    Adjusted diluted EPS

    $

    1.29

     

    $

    1.18

     

    9.3

    %

     

    $

    5.12

     

    $

    4.95

     

    3.4

    %

    Note: For details of pre-tax, tax and after-tax amounts, see Schedules 7 and 9.

    Special Items

    The EPS impact of the following special items is shown in Table 1 and Schedules 6, 7, 8 and 9.

    NPM Adjustment Items

    For the full-year 2023, we recorded pre-tax income of $50 million (or $0.02 per share) for NPM Adjustment Items and related interest, including $29 million recorded as a reduction to cost of sales in the smokeable products segment and $21 million recorded as interest income.

    Acquisition, Disposition and Integration-Related Items

    For the full-year 2024, we recorded net pre-tax income of $2.5 billion (or $1.08 per share) of acquisition, disposition and integration-related items, primarily related to a pre-tax gain of $2.7 billion on the assignment of the IQOS Tobacco Heating System commercialization rights to PMI in April 2024, partially offset by net pre-tax expenses associated with the NJOY Transaction, including a pre-tax charge of $140 million related to a change in the fair value of the contingent payments.

    Asset Impairment, Exit and Implementation Costs

    In the fourth quarter of 2024, we recorded pre-tax charges of $68 million (or $0.03 per share) for employee separation costs and implementation costs related to our Initiative. For the full-year 2024, we recorded pre-tax charges of $422 million (or $0.18 per share) related to a non-cash, pre-tax charge for our impairment of the Skoal trademark and employee separation costs and implementation costs related to our Initiative.

    Tobacco and Health and Certain Other Litigation Items

    For the full-year 2024, we recorded pre-tax charges of $101 million (or $0.04 per share) for tobacco and health and certain other litigation items and related interest costs.

    For the full-year 2023, we recorded pre-tax charges of $430 million (or $0.18 per share) for tobacco and health and certain other litigation items and related interest costs. The charges for the full year include the settlement of certain JUUL-related litigation.

    Loss on Disposition of JUUL Equity Securities

    For the full-year 2023, we recorded a non-cash, pre-tax loss of $250 million (or $0.14 per share) related to the disposition of our former investment in JUUL. We recorded a corresponding adjustment to the JUUL tax valuation allowance.

    ABI-Related Special Items

    In the fourth quarter of 2024, we recorded net pre-tax expenses of $41 million (or $0.02 per share) for ABI-related special items, primarily related to mark-to-market losses and other activities on certain ABI financial instruments associated with its share commitments.

    For the fourth quarter and full-year 2023, equity earnings from ABI included net pre-tax losses of $35 million (or $0.02 per share) and $89 million (or $0.03 per share), respectively, consisting primarily of a loss on ABI's sale of certain brands and associated assets in the United States. The amounts for the full-year 2023 also included mark-to-market losses on certain ABI financial instruments associated with its share commitments.

    The ABI-related special items include our respective share of the amounts recorded by ABI and additional adjustments related to (i) the conversion of ABI-related special items from international financial reporting standards to GAAP and (ii) adjustments to our investment required under the equity method of accounting.

    Cronos-Related Special Items

    For the full-year 2023, we recorded pre-tax losses of $29 million (or $0.02 per share) for Cronos-related special items, substantially all of which related to our share of special items recorded by Cronos. We recorded a corresponding adjustment to the Cronos tax valuation allowance.

    Income Tax Items

    For the fourth quarter and full-year 2024, we recorded income tax items of $928 million (or $0.55 per share) and $969 million (or $0.56 per share), respectively, primarily related to the reversal of an unrecognized tax benefit resulting in the partial release of a valuation allowance related to our former investment in JUUL in connection with an agreement reached in October 2024 with the Internal Revenue Service. The amounts for the full-year 2024 also include the partial release of a valuation allowance in connection with the partial sale of our investment in ABI.

    For the full-year 2023, we recorded income tax items of $32 million (or $0.02 per share), due primarily to tax expense associated with a tax basis adjustment related to our investment in ABI.

    SMOKEABLE PRODUCTS

    Revenues and OCI

    Fourth Quarter

    • Net revenues decreased 0.2%, primarily driven by lower shipment volume and higher promotional investments, partially offset by higher pricing. Revenues net of excise taxes increased 1.7%.
    • Reported OCI increased 2.3%, primarily driven by higher pricing, partially offset by lower shipment volume, costs related to our Initiative, higher promotional investments and higher selling, general and administrative (SG&A) costs.
    • Adjusted OCI increased 5.5%, primarily driven by higher pricing, partially offset by lower shipment volume, higher promotional investments and higher SG&A costs. Adjusted OCI margins increased by 2.2 percentage points to 61.2%.

    Full Year

    • Net revenues decreased 2.5%, primarily driven by lower shipment volume and higher promotional investments, partially offset by higher pricing. Revenues net of excise taxes decreased 0.8%.
    • Reported OCI increased 1.4%, primarily driven by higher pricing and lower SG&A costs, partially offset by lower shipment volume, higher promotional investments, higher per unit settlement charges, higher manufacturing costs and costs related to our Initiative.
    • Adjusted OCI increased 2.0%, primarily driven by higher pricing and lower SG&A costs, partially offset by lower shipment volume, higher promotional investments, higher per unit settlement charges and higher manufacturing costs. Adjusted OCI margins increased by 1.7 percentage points to 61.6%.

    Table 2 - Smokeable Products: Revenues and OCI ($ in millions)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Fourth Quarter

     

    Full Year

     

    2024

    2023

    Change

     

    2024

    2023

    Change

    Net revenues

    $

    5,263

     

    $

    5,274

     

    (0.2

    )%

     

    $

    21,204

     

    $

    21,756

     

    (2.5

    )%

    Excise taxes

     

    (839

    )

     

    (924

    )

     

     

     

    (3,469

    )

     

    (3,869

    )

     

    Revenues net of excise taxes

    $

    4,424

     

    $

    4,350

     

    1.7

    %

     

    $

    17,735

     

    $

    17,887

     

    (0.8

    )%

     

     

     

     

     

     

     

     

    Reported OCI

    $

    2,638

     

    $

    2,578

     

    2.3

    %

     

    $

    10,821

     

    $

    10,670

     

    1.4

    %

    NPM Adjustment Items

     

    —

     

     

    (14

    )

     

     

     

    (29

    )

     

    (29

    )

     

    Asset impairment, exit and implementation costs

     

    60

     

     

    —

     

     

     

     

    60

     

     

    —

     

     

    Tobacco and health and certain other litigation items

     

    11

     

     

    4

     

     

     

     

    70

     

     

    69

     

     

    Adjusted OCI

    $

    2,709

     

    $

    2,568

     

    5.5

    %

     

    $

    10,922

     

    $

    10,710

     

    2.0

    %

    Reported OCI margins 1

     

    59.6

    %

     

    59.3

    %

    0.3 pp

     

     

    61.0

    %

     

    59.7

    %

    1.3 pp

    Adjusted OCI margins 1

     

    61.2

    %

     

    59.0

    %

    2.2 pp

     

     

    61.6

    %

     

    59.9

    %

    1.7 pp

    1 Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.

    Shipment Volume

    Fourth Quarter

    • Smokeable products segment reported domestic cigarette shipment volume decreased 8.8%, primarily driven by the industry's decline rate (impacted by the growth of illicit e-vapor products and continued discretionary income pressures on ATCs) and retail share losses, partially offset by calendar differences and trade inventory movements.
    • When adjusted for calendar differences and trade inventory movements, smokeable products segment domestic cigarette shipment volume decreased by an estimated 11%.
    • When adjusted for calendar differences and trade inventory movements, total estimated domestic cigarette industry volume decreased by an estimated 8%.
    • Reported cigar shipment volume increased 2.9%.

    Full Year

    • Smokeable products segment reported domestic cigarette shipment volume decreased 10.2%, primarily driven by the industry's decline rate (impacted by the growth of illicit e-vapor products and continued discretionary income pressures on ATCs), retail share losses and trade inventory movements, partially offset by calendar differences.
    • When adjusted for calendar differences and trade inventory movements, smokeable products segment domestic cigarette shipment volume decreased by an estimated 11%.
    • When adjusted for calendar differences and trade inventory movements, total estimated domestic cigarette industry volume decreased by an estimated 9%.
    • Reported cigar shipment volume decreased 1.5%.

    Table 3 - Smokeable Products: Reported Shipment Volume (sticks in millions)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Fourth Quarter

     

    Full Year

     

    2024

    2023

    Change

     

    2024

    2023

    Change

    Cigarettes:

     

     

     

     

     

     

     

    Marlboro

    15,173

    16,462

    (7.8

    )%

     

    62,584

    68,801

    (9.0

    )%

    Other premium

    789

    859

    (8.1

    )%

     

    3,186

    3,533

    (9.8

    )%

    Discount

    631

    883

    (28.5

    )%

     

    2,812

    4,002

    (29.7

    )%

    Total cigarettes

    16,593

    18,204

    (8.8

    )%

     

    68,582

    76,336

    (10.2

    )%

     

     

     

     

     

     

     

     

    Cigars:

     

     

     

     

     

     

     

    Black & Mild

    430

    418

    2.9

    %

     

    1,750

    1,777

    (1.5

    )%

    Other

    1

    1

    —

    %

     

    4

    3

    33.3

    %

    Total cigars

    431

    419

    2.9

    %

     

    1,754

    1,780

    (1.5

    )%

     

     

     

     

     

     

     

     

    Total smokeable products

    17,024

    18,623

    (8.6

    )%

     

    70,336

    78,116

    (10.0

    )%

    Note: Cigarettes volume includes units sold as well as promotional units but excludes units sold for distribution to Puerto Rico, U.S. Territories to overseas military and by Philip Morris Duty Free Inc., none of which, individually or in the aggregate, is material to our smokeable products segment.

    Retail Share and Brand Activity

    Fourth Quarter

    • Marlboro retail share of the total cigarette category was 41.3%, a decrease of 1.0 share point versus the prior year and 0.3 share points sequentially. Marlboro share of the premium segment was 59.4%, an increase of 0.1 share point versus the prior year and sequentially.
    • The cigarette industry discount retail share was 30.4%, an increase of 1.7 share points versus the prior year and 0.6 share points sequentially, primarily due to continued discretionary income pressures on ATCs.

    Full Year

    • Marlboro retail share of the total cigarette category was 41.7%, a decrease of 0.5 share points versus the prior year. Marlboro share of the premium segment was 59.3%, an increase of 0.4 share points versus the prior year.
    • The cigarette industry discount retail share was 29.7%, an increase of 1.3 share points versus the prior year, primarily due to continued discretionary income pressures on ATCs.

    Table 4 - Smokeable Products: Cigarettes Retail Share (percent)

     

     

     

     

     

     

     

     

     

     

    Fourth Quarter

     

    Full Year

     

    2024

    2023

    Percentage

    point

    change

     

    2024

    2023

    Percentage

    point

    change

    Cigarettes:

     

     

     

     

     

     

     

    Marlboro

    41.3

    %

    42.3

    %

    (1.0

    )

     

    41.7

    %

    42.2

    %

    (0.5

    )

    Other premium

    2.2

     

    2.3

     

    (0.1

    )

     

    2.2

     

    2.3

     

    (0.1

    )

    Discount

    1.8

     

    2.2

     

    (0.4

    )

     

    2.0

     

    2.4

     

    (0.4

    )

    Total cigarettes

    45.3

    %

    46.8

    %

    (1.5

    )

     

    45.9

    %

    46.9

    %

    (1.0

    )

    Note: Retail share results for cigarettes are based on data from Circana, LLC (Circana) as well as MSAi. Circana maintains a blended retail service that uses a sample of stores and certain wholesale shipments to project market share and depict share trends. This service tracks sales in the food, drug, mass merchandisers, convenience, military, dollar store and club trade classes. For other trade classes selling cigarettes, retail share is based on shipments from wholesalers to retailers through the Store Tracking Analytical Reporting System (STARS), as provided by MSAi. This service is not designed to capture sales through other channels, including the internet, direct mail and some illicitly tax-advantaged outlets. It is the standard practice of retail services to periodically refresh their retail scan services, which could restate retail share results that were previously released in these services.

    ORAL TOBACCO PRODUCTS

    Revenues and OCI

    Fourth Quarter

    • Net revenues increased 2.7%, driven by higher pricing, partially offset by a higher percentage of on! shipment volume relative to MST versus the prior year (mix change), lower shipment volume and higher promotional investments. Revenues net of excise taxes increased 2.5%.
    • Reported OCI increased 11.0%, primarily driven by higher pricing and lower SG&A costs, partially offset by mix change, lower shipment volume, higher promotional investments and costs related to our Initiative.
    • Adjusted OCI increased 13.0%, primarily driven by higher pricing and lower SG&A costs, partially offset by mix change, lower shipment volume and higher promotional investments. Adjusted OCI margins increased by 6.4 percentage points to 69.5%.

    Full Year

    • Net revenues increased 4.1%, primarily driven by higher pricing, partially offset by mix change and lower shipment volume. Revenues net of excise taxes increased 4.5%.
    • Reported OCI decreased 15.9%, primarily driven by a non-cash impairment of the Skoal trademark, mix change and lower shipment volume, partially offset by higher pricing.
    • Adjusted OCI increased 5.2%, primarily driven by higher pricing, partially offset by mix change and lower shipment volume. Adjusted OCI margins increased by 0.4 percentage points to 67.8%.

    Table 5 - Oral Tobacco Products: Revenues and OCI ($ in millions)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Fourth Quarter

     

    Full Year

     

    2024

    2023

    Change

     

    2024

    2023

    Change

    Net revenues

    $

    692

     

    $

    674

     

    2.7

    %

     

    $

    2,776

     

    $

    2,667

     

    4.1

    %

    Excise taxes

     

    (29

    )

     

    (27

    )

     

     

     

    (105

    )

     

    (112

    )

     

    Revenues net of excise taxes

    $

    663

     

    $

    647

     

    2.5

    %

     

    $

    2,671

     

    $

    2,555

     

    4.5

    %

     

     

     

     

     

     

     

     

    Reported OCI

    $

    453

     

    $

    408

     

    11.0

    %

     

    $

    1,449

     

    $

    1,722

     

    (15.9

    )%

    Asset impairment, exit and implementation costs

     

    8

     

     

    —

     

     

     

     

    362

     

     

    —

     

     

    Adjusted OCI

    $

    461

     

    $

    408

     

    13.0

    %

     

    $

    1,811

     

    $

    1,722

     

    5.2

    %

    Reported OCI margins 1

     

    68.3

    %

     

    63.1

    %

    5.2 pp

     

     

    54.2

    %

     

    67.4

    %

    (13.2) pp

    Adjusted OCI margins 1

     

    69.5

    %

     

    63.1

    %

    6.4 pp

     

     

    67.8

    %

     

    67.4

    %

    0.4 pp

    1 Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.

    Shipment Volume

    Fourth Quarter

    • Oral tobacco products segment reported domestic shipment volume decreased 0.4%, primarily driven by retail share losses, trade inventory movements and other factors, partially offset by the industry's growth rate and calendar differences. When adjusted for trade inventory movements and calendar differences, oral tobacco products segment shipment volume was essentially unchanged.

    Full Year

    • Oral tobacco products segment reported domestic shipment volume decreased 1.0%, primarily driven by retail share losses and trade inventory movements, partially offset by the industry's growth rate, calendar differences and other factors. When adjusted for calendar differences and trade inventory movements, oral tobacco products segment shipment volume decreased by an estimated 2%.
    • Total oral tobacco industry volume increased by an estimated 8% over the six months ended December 31, 2024, primarily driven by growth in oral nicotine pouches, partially offset by declines in MST volumes.

    Table 6 - Oral Tobacco Products: Reported Shipment Volume (cans and packs in millions)

     

     

     

     

     

     

     

     

     

    Fourth Quarter

     

    Full Year

     

    2024

    2023

    Change

     

    2024

    2023

    Change

    Copenhagen

    97.1

    106.8

    (9.1

    )%

     

    401.5

    440.1

    (8.8

    )%

    Skoal

    35.4

    39.8

    (11.1

    )%

     

    147.0

    163.1

    (9.9

    )%

    on!

    43.9

    30.4

    44.4

    %

     

    160.3

    114.3

    40.2

    %

    Other

    15.9

    16.1

    (1.2

    )%

     

    65.9

    65.4

    0.8

    %

    Total oral tobacco products

    192.3

    193.1

    (0.4

    )%

     

    774.7

    782.9

    (1.0

    )%

    Note: Volume includes cans and packs sold, as well as promotional units, but excludes international volume, which is currently not material to our oral tobacco products segment. New types of oral tobacco products, as well as new packaging configurations of existing oral tobacco products, may or may not be equivalent to existing MST products on a can-for-can basis. To calculate volumes of cans and packs shipped, one can of oral nicotine pouches, irrespective of the number of pouches in the pack, is assumed to be equivalent to one can or pack of MST.

    Retail Share and Brand Activity

    Fourth Quarter

    • Oral tobacco products segment retail share was 36.8%, as share declines for MST products were partially offset by oral nicotine pouch segment share growth.
    • Total U.S. oral tobacco category share for on! nicotine pouches was 8.9%, an increase of 2.0 share points versus the prior year, and was flat sequentially.
    • The U.S. nicotine pouch category grew to 45.7% of the U.S. oral tobacco category, an increase of 9.6 share points versus the prior year. In addition, on!'s share of the nicotine pouch category was 19.5%, an increase of 0.4 share points versus the prior year and a decrease of 0.8 share points sequentially.

    Full Year

    • Oral tobacco products segment retail share was 37.5%, as share declines for MST products were partially offset by oral nicotine pouch segment share growth.
    • Total U.S. oral tobacco category share for on! nicotine pouches was 8.3%, an increase of 1.5 share points versus the prior year.
    • The U.S. nicotine pouch category grew to 42.9% of the U.S. oral tobacco category, an increase of 11.7 share points versus the prior year. In addition, on!'s share of the nicotine pouch category was 19.2%, a decrease of 2.6 share points versus the prior year.

    Table 7 - Oral Tobacco Products: Retail Share (percent)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Fourth Quarter

     

    Full Year

     

    2024

    2023

    Percentage

    point

    change

     

    2024

    2023

    Percentage

    point

    change

    Copenhagen

    18.1

    %

    21.7

    %

    (3.6

    )

     

    19.1

    %

    23.5

    %

    (4.4

    )

    Skoal

    7.1

     

    8.6

     

    (1.5

    )

     

    7.6

     

    9.3

     

    (1.7

    )

    on!

    8.9

     

    6.9

     

    2.0

     

     

    8.3

     

    6.8

     

    1.5

     

    Other

    2.7

     

    2.7

     

    —

     

     

    2.5

     

    2.9

     

    (0.4

    )

    Total oral tobacco products

    36.8

    %

    39.9

    %

    (3.1

    )

     

    37.5

    %

    42.5

    %

    (5.0

    )

    Note: Our oral tobacco products segment's retail share results exclude international volume, which is currently not material to our oral tobacco products segment. Retail share results for oral tobacco products are based on data from Circana, a tracking service that uses a sample of stores to project market share and depict share trends. This service tracks sales in the food, drug, mass merchandisers, convenience, military, dollar store and club trade classes on the number of cans and packs sold. Oral tobacco products are defined by Circana as domestic tobacco derived oral products, in the form of MST and oral nicotine pouches. New types of oral tobacco products, as well as new packaging configurations of existing oral tobacco products, may or may not be equivalent to existing MST products on a can-for-can basis. For example one can of oral nicotine pouches, irrespective of the number of pouches in the pack, is assumed to be equivalent to one can or pack of MST. Because this service represents retail share performance only in key trade channels, it should not be considered a precise measurement of actual retail share. It is the standard practice of retail services to periodically refresh their retail scan services, which could restate retail share results that were previously released in these services.

    Altria's Profile

    We have a leading portfolio of tobacco products for U.S. tobacco consumers age 21+. Our Vision is to responsibly lead the transition of adult smokers to a smoke-free future (Vision). We are Moving Beyond Smoking™, leading the way in moving adult smokers away from cigarettes by taking action to transition millions to potentially less harmful choices - believing it is a substantial opportunity for adult tobacco consumers, our businesses and society.

    Our wholly owned subsidiaries include leading manufacturers of both combustible and smoke-free products. In combustibles, we own Philip Morris USA Inc. (PM USA), the most profitable U.S. cigarette manufacturer, and John Middleton Co. (Middleton), a leading U.S. cigar manufacturer. Our smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), the leading global moist smokeless tobacco (MST) manufacturer, Helix Innovations LLC (Helix), a leading manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with a commercialized product portfolio fully covered by marketing granted orders from the U.S. Food and Drug Administration (FDA).

    Additionally, we have a majority-owned joint venture, Horizon Innovations LLC (Horizon), for the U.S. marketing and commercialization of heated tobacco stick products.

    Our equity investments include Anheuser-Busch InBev SA/NV (ABI), the world's largest brewer, and Cronos Group Inc. (Cronos), a leading Canadian cannabinoid company.

    The brand portfolios of our operating companies include Marlboro®, Black & Mild®, Copenhagen®, Skoal®, on!® and NJOY®. Trademarks related to Altria referenced in this release are the property of Altria or our subsidiaries or are used with permission.

    Learn more about Altria at www.altria.com and follow us on X (formerly known as Twitter), Facebook and LinkedIn.

    Basis of Presentation

    We report our financial results in accordance with GAAP. Our management reviews OCI, which is defined as operating income before general corporate expenses and amortization of intangibles, to evaluate the performance of, and allocate resources to, our segments. Our management also reviews certain financial results, including OCI, OCI margins and diluted EPS, on an adjusted basis, which excludes certain income and expense items, including those items noted under "2025 Full-Year Guidance." In addition, our management reviews the ratio of debt-to-Consolidated EBITDA, which we use as a factor to determine our ability to access the capital markets and make investments in pursuit of our Vision. Consolidated EBITDA is calculated in accordance with our credit agreement and includes certain adjustments. Our management does not view any of these special items to be part of our underlying results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Our management also reviews income tax rates on an adjusted basis. Our adjusted effective tax rate may exclude certain income tax items from our reported effective tax rate. Our management believes that adjusted financial measures provide useful additional insight into underlying business trends and results, and provide a more meaningful comparison of year-over-year results. Our management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance, including allocating capital and other resources and evaluating results relative to employee compensation targets. These adjusted financial measures are not required by, or calculated in accordance with, GAAP and may not be calculated the same as similarly titled measures used by other companies. These adjusted financial measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. We provide reconciliations of historical adjusted financial measures to corresponding GAAP measures in this release.

    We use the equity method of accounting for our investments in ABI and Cronos and report our share of ABI's and Cronos's results using a one-quarter lag because ABI's and Cronos's results are not available in time for us to record them in the concurrent period. The one-quarter reporting lag for ABI and Cronos does not affect our cash flows. We accounted for our former investment in the equity securities of JUUL at fair value.

    Our reportable segments are (i) smokeable products, consisting of combustible cigarettes and machine-made large cigars, and (ii) oral tobacco products, consisting of MST and oral nicotine pouches. We have included results for NJOY, Horizon, Helix International and other business activities, all of which consists of research and development expense related to certain new product platforms and technologies, in "All Other." Comparisons are to the corresponding prior-year period unless otherwise stated.

    Forward-Looking and Cautionary Statements

    This release contains projections of future results and other forward-looking statements that are subject to a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.

    Important factors that may cause actual results to differ materially from those contained in the forward-looking statements included in this release are described in our publicly filed reports, including our Annual Report on Form 10-K for the year ended December 31, 2023. These factors include the following:

    • our inability to anticipate and respond to changes in adult tobacco consumer preferences and purchase behavior;
    • our inability to compete effectively;
    • the growth of the e-vapor category, including illicit disposable e-vapor products, which contributes to reductions in domestic cigarette consumption levels and shipment volume;
    • the risks associated with illicit trade in tobacco products (including counterfeit products, illegally imported products, illicit disposable e-vapor products and oral nicotine pouch products) and the sale of products designed to avoid the regulatory framework for tobacco products, such as products using nicotine analogues, each of which contributes to reductions in the consumption levels and shipment volumes of our businesses' products;
    • our failure to develop and commercialize innovative products, including tobacco products that may reduce health risks relative to other tobacco products and appeal to adult tobacco consumers;
    • changes, including in macroeconomic and geopolitical conditions (including inflation), that result in shifts in ATC disposable income and purchasing behavior, including choosing lower-priced and discount brands or products, and reductions in shipment volumes;
    • unfavorable outcomes with respect to litigation proceedings or any governmental investigations, including significant monetary and non-monetary remedies and importation bans;
    • the risks associated with significant federal, state and local government actions, including FDA regulatory actions and inaction, and various private sector actions;
    • increases in tobacco product-related taxes;
    • our failure to complete or manage successfully strategic transactions, including the NJOY Transaction and other acquisitions, dispositions, joint ventures and investments in third parties, or realize the anticipated benefits of such transactions;
    • significant changes in price, availability or quality of tobacco, other raw materials or component parts, including as a result of changes in macroeconomic, climate and geopolitical conditions;
    • our reliance on a few significant facilities and a small number of key suppliers, distributors and distribution chain service providers and the risks associated with an extended disruption at a facility or in service by a supplier, distributor or distribution chain service provider;
    • the risk that we may be required to write down intangible assets, including trademarks and goodwill, due to impairment;
    • the risk that we could decide, or be required, to recall products;
    • the various risks related to health epidemics and pandemics and the measures that international, federal, state and local governments, agencies, law enforcement and health authorities implement to address them;
    • our inability to attract and retain a highly skilled and diverse workforce due to the decreasing social acceptance of tobacco usage, tobacco control actions and other factors;
    • the risks associated with the various U.S. and foreign laws and regulations to which we are subject due to our international business operations;
    • the risks concerning a challenge to our tax positions, an increase in the income tax rate or other changes to federal or state tax laws;
    • the risks associated with legal and regulatory requirements related to climate change and other environmental sustainability matters;
    • disruption and uncertainty in the credit and capital markets, including risk of losing access to these markets;
    • a downgrade or potential downgrade of our credit ratings;
    • our inability to attract investors due to increasing investor expectations of our performance relating to corporate responsibility factors, including environmental, social and governance matters;
    • the failure of our, or our key service providers' or key suppliers', information systems to function as intended, or cyber-attacks or security breaches affecting us or our key service providers or key suppliers;
    • our failure, or the failure of our key service providers or key suppliers, to comply with laws related to personal data protection, privacy, artificial intelligence and information security;
    • our ability to recognize the expected cost savings in connection with the Initiative or successfully reinvest those savings in our businesses in support of our Vision and 2028 Enterprise Goals, in each case, in the expected manner or time frame or at all;
    • the risk that the expected benefits of our investment in ABI may not materialize in the expected manner or timeframe or at all, including due to macroeconomic and geopolitical conditions; foreign currency exchange rates; ABI's business results; ABI's share price; impairment losses on the value of our investment; our incurrence of additional tax liabilities related to our investment in ABI; and potential reductions in the number of directors that we can have appointed to the ABI board of directors; and
    • the risks associated with our investment in Cronos, including legal, regulatory and reputational risks and the risk that the expected benefits of the transaction may not materialize in the expected manner or timeframe or at all.

    You should understand that it is not possible to predict or identify all factors and risks. Consequently, you should not consider the foregoing list to be complete. We do not undertake to update any forward-looking statement that we may make from time to time except as required by applicable law. All subsequent written and oral forward-looking statements attributable to Altria or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements referenced above.

    Schedule 1

    ALTRIA GROUP, INC.

    and Subsidiaries

    Consolidated Statements of Earnings

    For the Quarters Ended December 31,

    (dollars in millions, except per share data)

    (Unaudited)

     

     

     

     

     

     

     

    2024

     

    2023

     

    % Change

     

     

     

     

     

     

    Net revenues

    $

    5,974

     

     

    $

    5,975

     

     

    —

    %

    Cost of sales 1

     

    1,502

     

     

     

    1,525

     

     

     

    Excise taxes on products 1

     

    868

     

     

     

    951

     

     

     

    Gross profit

     

    3,604

     

     

     

    3,499

     

     

    3.0

    %

    Marketing, administration and research costs

     

    601

     

     

     

    570

     

     

     

    Asset impairment and exit costs

     

    35

     

     

     

    —

     

     

     

    Operating companies income

     

    2,968

     

     

     

    2,929

     

     

    1.3

    %

    Amortization of intangibles

     

    37

     

     

     

    41

     

     

     

    General corporate expenses

     

    49

     

     

     

    92

     

     

     

    Operating income

     

    2,882

     

     

     

    2,796

     

     

    3.1

    %

    Interest and other debt expense, net

     

    255

     

     

     

    231

     

     

     

    Net periodic benefit income, excluding service cost

     

    (28

    )

     

     

    (32

    )

     

     

    (Income) losses from investments in equity securities 1

     

    (122

    )

     

     

    (138

    )

     

     

    Earnings before income taxes

     

    2,777

     

     

     

    2,735

     

     

    1.5

    %

    (Benefit) provision for income taxes

     

    (262

    )

     

     

    675

     

     

     

    Net earnings

    $

    3,039

     

     

    $

    2,060

     

     

    47.5

    %

     

     

     

     

     

     

    Per share data:

     

     

     

     

     

    Diluted earnings per share

    $

    1.79

     

     

    $

    1.16

     

     

    54.3

    %

     

     

     

     

     

     

    Weighted-average diluted shares outstanding

     

    1,694

     

     

     

    1,767

     

     

    (4.1

    )%

    1 Cost of sales includes charges for resolution expenses related to state settlement agreements and FDA user fees. Supplemental information concerning those items, excise taxes on products sold and (income) losses from investments in equity securities is shown in Schedule 5.

    Schedule 2

    ALTRIA GROUP, INC.

    and Subsidiaries

    Selected Financial Data

    For the Quarters Ended December 31,

    (dollars in millions)

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

     

    Net Revenues

     

    Smokeable

    Products

    Oral

    Tobacco

    Products

    All Other

    Total

    2024

    $

    5,263

     

    $

    692

     

    $

    19

     

    $

    5,974

     

    2023

     

    5,274

     

     

    674

     

     

    27

     

     

    5,975

     

    % Change

     

    (0.2

    )%

     

    2.7

    %

     

    (29.6

    )%

     

    —

    %

     

     

     

     

     

    Reconciliation:

     

     

     

     

    For the quarter ended December 31, 2023

    $

    5,274

     

    $

    674

     

    $

    27

     

    $

    5,975

     

    Operations

     

    (11

    )

     

    18

     

     

    (8

    )

     

    (1

    )

    For the quarter ended December 31, 2024

    $

    5,263

     

    $

    692

     

    $

    19

     

    $

    5,974

     

     

     

     

     

     

     

    Operating Companies Income (Loss)

     

    Smokeable

    Products

    Oral

    Tobacco

    Products

    All Other

    Total

    2024

    $

    2,638

     

    $

    453

     

    $

    (123

    )

    $

    2,968

     

    2023

     

    2,578

     

     

    408

     

     

    (57

    )

     

    2,929

     

    % Change

     

    2.3

    %

     

    11.0

    %

    (100%+)

     

    1.3

    %

     

     

     

     

     

    Reconciliation:

     

     

     

     

    For the quarter ended December 31, 2023

    $

    2,578

     

    $

    408

     

    $

    (57

    )

    $

    2,929

     

     

     

     

     

     

    NPM Adjustment Items - 2023

     

    (14

    )

     

    —

     

     

    —

     

     

    (14

    )

    Tobacco and health and certain other litigation items - 2023

     

    4

     

     

    —

     

     

    —

     

     

    4

     

     

     

    (10

    )

     

    —

     

     

    —

     

     

    (10

    )

     

     

     

     

     

    Asset impairment, exit and implementation costs - 2024

     

    (60

    )

     

    (8

    )

     

    —

     

     

    (68

    )

    Tobacco and health and certain other litigation items - 2024

     

    (11

    )

     

    —

     

     

    —

     

     

    (11

    )

     

     

    (71

    )

     

    (8

    )

     

    —

     

     

    (79

    )

    Operations

     

    141

     

     

    53

     

     

    (66

    )

     

    128

     

    For the quarter ended December 31, 2024

    $

    2,638

     

    $

    453

     

    $

    (123

    )

    $

    2,968

     

     

     

     

     

     

    Schedule 3

    ALTRIA GROUP, INC.

    and Subsidiaries

    Consolidated Statements of Earnings

    For the Years Ended December 31,

    (dollars in millions, except per share data)

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

     

     

     

    2024

     

    2023

     

    % Change

     

     

     

     

     

     

    Net revenues

    $

    24,018

     

     

    $

    24,483

     

     

    (1.9

    )%

    Cost of sales 1

     

    6,077

     

     

     

    6,218

     

     

     

    Excise taxes on products 1

     

    3,574

     

     

     

    3,981

     

     

     

    Gross profit

     

    14,367

     

     

     

    14,284

     

     

    0.6

    %

    Marketing, administration and research costs

     

    2,122

     

     

     

    1,966

     

     

     

    Asset impairment and exit costs

     

    389

     

     

     

    —

     

     

     

    Operating companies income

     

    11,856

     

     

     

    12,318

     

     

    (3.8

    )%

    Amortization of intangibles

     

    139

     

     

     

    128

     

     

     

    General corporate expenses

     

    476

     

     

     

    643

     

     

     

    Operating income

     

    11,241

     

     

     

    11,547

     

     

    (2.7

    )%

    Interest and other debt expense, net

     

    1,037

     

     

     

    989

     

     

     

    Net periodic benefit income, excluding service cost

     

    (102

    )

     

     

    (127

    )

     

     

    (Income) losses from investments in equity securities 1

     

    (652

    )

     

     

    (243

    )

     

     

    Gain on the sale of IQOS System commercialization rights

     

    (2,700

    )

     

     

    —

     

     

     

    Earnings before income taxes

     

    13,658

     

     

     

    10,928

     

     

    25.0

    %

    Provision for income taxes

     

    2,394

     

     

     

    2,798

     

     

     

    Net earnings

    $

    11,264

     

     

    $

    8,130

     

     

    38.5

    %

     

     

     

     

     

     

    Per share data2:

     

     

     

     

     

    Diluted earnings per share

    $

    6.54

     

     

    $

    4.57

     

     

    43.1

    %

     

     

     

     

     

     

    Weighted-average diluted shares outstanding

     

    1,718

     

     

     

    1,777

     

     

    (3.3

    )%

    1 Cost of sales includes charges for resolution expenses related to state settlement agreements and FDA user fees. Supplemental information concerning those items, excise taxes on products sold and (income) losses from investments in equity securities is shown in Schedule 5.

    2 Diluted earnings per share are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.

    Schedule 4

    ALTRIA GROUP, INC.

    and Subsidiaries

    Selected Financial Data

    For the Years Ended December 31,

    (dollars in millions)

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

     

    Net Revenues

     

    Smokeable

    Products

    Oral

    Tobacco

    Products

    All Other

    Total

    2024

    $

    21,204

     

    $

    2,776

     

    $

    38

     

    $

    24,018

     

    2023

     

    21,756

     

     

    2,667

     

     

    60

     

     

    24,483

     

    % Change

     

    (2.5

    )%

     

    4.1

    %

     

    (36.7

    )%

     

    (1.9

    )%

     

     

     

     

     

    Reconciliation:

     

     

     

     

    For the year ended December 31, 2023

    $

    21,756

     

    $

    2,667

     

    $

    60

     

    $

    24,483

     

    Operations

     

    (552

    )

     

    109

     

     

    (22

    )

     

    (465

    )

    For the year ended December 31, 2024

    $

    21,204

     

    $

    2,776

     

    $

    38

     

    $

    24,018

     

     

     

     

     

     

     

    Operating Companies Income (Loss)

     

    Smokeable

    Products

    Oral

    Tobacco

    Products

    All Other

    Total

    2024

    $

    10,821

     

    $

    1,449

     

    $

    (414

    )

    $

    11,856

     

    2023

     

    10,670

     

     

    1,722

     

     

    (74

    )

     

    12,318

     

    % Change

     

    1.4

    %

     

    (15.9

    )%

    (100%+)

     

    (3.8

    )%

     

     

     

     

     

    Reconciliation:

     

     

     

     

    For the year ended December 31, 2023

    $

    10,670

     

    $

    1,722

     

    $

    (74

    )

    $

    12,318

     

     

     

     

     

     

    NPM Adjustment Items - 2023

     

    (29

    )

     

    —

     

     

    —

     

     

    (29

    )

    Tobacco and health and certain other litigation items - 2023

     

    69

     

     

    —

     

     

    —

     

     

    69

     

     

     

    40

     

     

    —

     

     

    —

     

     

    40

     

     

     

     

     

     

    NPM Adjustment Items - 2024

     

    29

     

     

    —

     

     

    —

     

     

    29

     

    Asset impairment, exit and implementation costs - 2024

     

    (60

    )

     

    (362

    )

     

    —

     

     

    (422

    )

    Tobacco and health and certain other litigation items - 2024

     

    (70

    )

     

    —

     

     

    —

     

     

    (70

    )

     

     

    (101

    )

     

    (362

    )

     

    —

     

     

    (463

    )

    Operations

     

    212

     

     

    89

     

     

    (340

    )

     

    (39

    )

    For the year ended December 31, 2024

    $

    10,821

     

    $

    1,449

     

    $

    (414

    )

    $

    11,856

     

     

    Schedule 5

    ALTRIA GROUP, INC.

    and Subsidiaries

    Supplemental Financial Data

    (dollars in millions)

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    For the Quarters Ended

    December 31,

     

    For the Years Ended

    December 31,

     

    2024

     

    2023

     

    2024

     

    2023

    The segment detail of excise taxes on products sold is as follows:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Smokeable products

    $

    839

     

     

    $

    924

     

     

    $

    3,469

     

     

    $

    3,869

     

    Oral tobacco products

     

    29

     

     

     

    27

     

     

     

    105

     

     

     

    112

     

     

    $

    868

     

     

    $

    951

     

     

    $

    3,574

     

     

    $

    3,981

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    The segment detail of charges for resolution expenses related to state settlement agreements included in cost of sales is as follows:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Smokeable products

    $

    806

     

     

    $

    879

     

     

    $

    3,460

     

     

    $

    3,711

     

    Oral tobacco products

     

    —

     

     

     

    1

     

     

     

    8

     

     

     

    4

     

     

    $

    806

     

     

    $

    880

     

     

    $

    3,468

     

     

    $

    3,715

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    The segment detail of FDA user fees included in cost of sales is as follows:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Smokeable products

    $

    59

     

     

    $

    66

     

     

    $

    249

     

     

    $

    259

     

    Oral tobacco products

     

    1

     

     

     

    1

     

     

     

    5

     

     

     

    5

     

     

    $

    60

     

     

    $

    67

     

     

    $

    254

     

     

    $

    264

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    The detail of (income) losses from investments in equity securities is as follows:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    ABI

    $

    (118

    )

     

    $

    (138

    )

     

    $

    (673

    )

     

    $

    (539

    )

    Cronos

     

    (4

    )

     

     

    —

     

     

     

    21

     

     

     

    46

     

    JUUL

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    250

     

     

    $

    (122

    )

     

    $

    (138

    )

     

    $

    (652

    )

     

    $

    (243

    )

     

    Schedule 6

    ALTRIA GROUP, INC.

    and Subsidiaries

    Net Earnings and Diluted Earnings Per Share

    For the Quarters Ended December 31,

    (dollars in millions, except per share data)

    (Unaudited)

     

     

     

     

     

     

     

     

     

    Net Earnings

     

    Diluted EPS

    2024 Net Earnings

    $

    3,039

     

     

    $

    1.79

     

    2023 Net Earnings

    $

    2,060

     

     

    $

    1.16

     

    % Change

     

    47.5

    %

     

     

    54.3

    %

     

     

     

     

    Reconciliation:

     

     

     

    2023 Net Earnings

    $

    2,060

     

     

    $

    1.16

     

     

     

     

     

    2023 NPM Adjustment Items

     

    (27

    )

     

     

    (0.01

    )

    2023 Acquisition, disposition and integration-related items

     

    16

     

     

     

    0.01

     

    2023 Tobacco and health and certain other litigation items

     

    5

     

     

     

    —

     

    2023 ABI-related special items

     

    27

     

     

     

    0.02

     

    2023 Cronos-related special items

     

    (1

    )

     

     

    —

     

    2023 Income tax items

     

    3

     

     

     

    —

     

    Subtotal 2023 special items

     

    23

     

     

     

    0.02

     

     

     

     

     

    2024 Acquisition, disposition and integration-related items

     

    13

     

     

     

    —

     

    2024 Asset impairment, exit and implementation costs

     

    (51

    )

     

     

    (0.03

    )

    2024 Tobacco and health and certain other litigation items

     

    (8

    )

     

     

    —

     

    2024 ABI-related special items

     

    (32

    )

     

     

    (0.02

    )

    2024 Cronos-related special items

     

    5

     

     

     

    —

     

    2024 Income tax items

     

    928

     

     

     

    0.55

     

    Subtotal 2024 special items

     

    855

     

     

     

    0.50

     

     

     

     

     

    Fewer shares outstanding

     

    —

     

     

     

    0.05

     

    Change in tax rate

     

    12

     

     

     

    —

     

    Operations

     

    89

     

     

     

    0.06

     

    2024 Net Earnings

    $

    3,039

     

     

    $

    1.79

     

     

    Schedule 7

    ALTRIA GROUP, INC.

    and Subsidiaries

    Reconciliation of GAAP and non-GAAP Measures

    For the Quarters Ended December 31,

    (dollars in millions, except per share data)

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

    Earnings

    before Income

    Taxes

     

    (Benefit)

    Provision

    for Income

    Taxes

     

    Net

    Earnings

     

    Diluted

    EPS

    2024 Reported

    $

    2,777

     

     

    $

    (262

    )

     

    $

    3,039

     

     

    $

    1.79

     

    Acquisition, disposition and integration-related items

     

    (14

    )

     

     

    (1

    )

     

     

    (13

    )

     

     

    —

     

    Asset impairment, exit and implementation costs

     

    68

     

     

     

    17

     

     

     

    51

     

     

     

    0.03

     

    Tobacco and health and certain other litigation items

     

    11

     

     

     

    3

     

     

     

    8

     

     

     

    —

     

    ABI-related special items

     

    41

     

     

     

    9

     

     

     

    32

     

     

     

    0.02

     

    Cronos-related special items

     

    (4

    )

     

     

    1

     

     

     

    (5

    )

     

     

    —

     

    Income tax items

     

    —

     

     

     

    928

     

     

     

    (928

    )

     

     

    (0.55

    )

    2024 Adjusted for Special Items

    $

    2,879

     

     

    $

    695

     

     

    $

    2,184

     

     

    $

    1.29

     

     

     

     

     

     

     

     

     

    2023 Reported

    $

    2,735

     

     

    $

    675

     

     

    $

    2,060

     

     

    $

    1.16

     

    NPM Adjustment Items

     

    (35

    )

     

     

    (8

    )

     

     

    (27

    )

     

     

    (0.01

    )

    Acquisition, disposition and integration-related items

     

    21

     

     

     

    5

     

     

     

    16

     

     

     

    0.01

     

    Tobacco and health and certain other litigation items

     

    6

     

     

     

    1

     

     

     

    5

     

     

     

    —

     

    ABI-related special items

     

    35

     

     

     

    8

     

     

     

    27

     

     

     

    0.02

     

    Cronos-related special items

     

    (1

    )

     

     

    —

     

     

     

    (1

    )

     

     

    —

     

    Income tax items

     

    —

     

     

     

    (3

    )

     

     

    3

     

     

     

    —

     

    2023 Adjusted for Special Items

    $

    2,761

     

     

    $

    678

     

     

    $

    2,083

     

     

    $

    1.18

     

     

     

     

     

     

     

     

     

    2024 Reported Net Earnings

     

     

     

     

    $

    3,039

     

     

    $

    1.79

     

    2023 Reported Net Earnings

     

     

     

     

    $

    2,060

     

     

    $

    1.16

     

    % Change

     

     

     

     

    47.5

    %

     

    54.3

    %

     

     

     

     

     

     

     

     

    2024 Net Earnings Adjusted for Special Items

     

     

     

     

    $

    2,184

     

     

    $

    1.29

     

    2023 Net Earnings Adjusted for Special Items

     

     

     

     

    $

    2,083

     

     

    $

    1.18

     

    % Change

     

     

     

     

    4.8

    %

     

    9.3

    %

    Schedule 8

    ALTRIA GROUP, INC.

    and Subsidiaries

    Net Earnings and Diluted Earnings Per Share

    For the Years Ended December 31,

    (dollars in millions, except per share data)

    (Unaudited)

     

     

     

     

     

     

     

     

     

    Net Earnings

     

    Diluted EPS1

    2024 Net Earnings

    $

    11,264

     

     

    $

    6.54

     

    2023 Net Earnings

    $

    8,130

     

     

    $

    4.57

     

    % Change

     

    38.5

    %

     

     

    43.1

    %

     

     

     

     

    Reconciliation:

     

     

     

    2023 Net Earnings

    $

    8,130

     

     

    $

    4.57

     

     

     

     

     

    2023 NPM Adjustment Items

     

    (38

    )

     

     

    (0.02

    )

    2023 Acquisition, disposition and integration-related items

     

    26

     

     

     

    0.01

     

    2023 Tobacco and health and certain other litigation items

     

    323

     

     

     

    0.18

     

    2023 Loss on disposition of JUUL equity securities

     

    250

     

     

     

    0.14

     

    2023 ABI-related special items

     

    70

     

     

     

    0.03

     

    2023 Cronos-related special items

     

    29

     

     

     

    0.02

     

    2023 Income tax items

     

    32

     

     

     

    0.02

     

    Subtotal 2023 special items

     

    692

     

     

     

    0.38

     

     

     

     

     

    2024 NPM Adjustment Items

     

    20

     

     

     

    0.01

     

    2024 Acquisition, disposition and integration-related items

     

    1,862

     

     

     

    1.08

     

    2024 Asset impairment, exit and implementation costs

     

    (315

    )

     

     

    (0.18

    )

    2024 Tobacco and health and certain other litigation items

     

    (76

    )

     

     

    (0.04

    )

    2024 ABI-related special items

     

    (2

    )

     

     

    —

     

    2024 Cronos-related special items

     

    (15

    )

     

     

    (0.01

    )

    2024 Income tax items

     

    969

     

     

     

    0.56

     

    Subtotal 2024 special items

     

    2,443

     

     

     

    1.42

     

     

     

     

     

    Fewer shares outstanding

     

    —

     

     

     

    0.17

     

    Change in tax rate

     

    47

     

     

     

    0.03

     

    Operations

     

    (48

    )

     

     

    (0.03

    )

    2024 Net Earnings

    $

    11,264

     

     

    $

    6.54

     

    1 Diluted earnings per share are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.

    Schedule 9

    ALTRIA GROUP, INC.

    and Subsidiaries

    Reconciliation of GAAP and non-GAAP Measures

    For the Years Ended December 31,

    (dollars in millions, except per share data)

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

    Earnings

    before

    Income Taxes

     

    Provision

    for Income

    Taxes

     

    Net

    Earnings

     

    Diluted

    EPS1

    2024 Reported

    $

    13,658

     

     

    $

    2,394

     

     

    $

    11,264

     

     

    $

    6.54

     

    NPM Adjustment Items

     

    (27

    )

     

     

    (7

    )

     

     

    (20

    )

     

     

    (0.01

    )

    Acquisition, disposition and integration-related items

     

    (2,527

    )

     

     

    (665

    )

     

     

    (1,862

    )

     

     

    (1.08

    )

    Asset impairment, exit and implementation costs

     

    422

     

     

     

    107

     

     

     

    315

     

     

     

    0.18

     

    Tobacco and health and certain other litigation items

     

    101

     

     

     

    25

     

     

     

    76

     

     

     

    0.04

     

    ABI-related special items

     

    2

     

     

     

    —

     

     

     

    2

     

     

     

    —

     

    Cronos-related special items

     

    18

     

     

     

    3

     

     

     

    15

     

     

     

    0.01

     

    Income tax items

     

    —

     

     

     

    969

     

     

     

    (969

    )

     

     

    (0.56

    )

    2024 Adjusted for Special Items

    $

    11,647

     

     

    $

    2,826

     

     

    $

    8,821

     

     

    $

    5.12

     

     

     

     

     

     

     

     

     

    2023 Reported

    $

    10,928

     

     

    $

    2,798

     

     

    $

    8,130

     

     

    $

    4.57

     

    NPM Adjustment Items

     

    (50

    )

     

     

    (12

    )

     

     

    (38

    )

     

     

    (0.02

    )

    Acquisition, disposition and integration-related items

     

    35

     

     

     

    9

     

     

     

    26

     

     

     

    0.01

     

    Tobacco and health and certain other litigation items

     

    430

     

     

     

    107

     

     

     

    323

     

     

     

    0.18

     

    Loss on disposition of JUUL equity securities

     

    250

     

     

     

    —

     

     

     

    250

     

     

     

    0.14

     

    ABI-related special items

     

    89

     

     

     

    19

     

     

     

    70

     

     

     

    0.03

     

    Cronos-related special items

     

    29

     

     

     

    —

     

     

     

    29

     

     

     

    0.02

     

    Income tax items

     

    —

     

     

     

    (32

    )

     

     

    32

     

     

     

    0.02

     

    2023 Adjusted for Special Items

    $

    11,711

     

     

    $

    2,889

     

     

    $

    8,822

     

     

    $

    4.95

     

     

     

     

     

     

     

     

     

    2024 Reported Net Earnings

     

     

     

     

    $

    11,264

     

     

    $

    6.54

     

    2023 Reported Net Earnings

     

     

     

     

    $

    8,130

     

     

    $

    4.57

     

    % Change

     

     

     

     

    38.5

    %

     

    43.1

    %

     

     

     

     

     

     

     

     

    2024 Net Earnings Adjusted for Special Items

     

     

     

     

    $

    8,821

     

     

    $

    5.12

     

    2023 Net Earnings Adjusted for Special Items

     

     

     

     

    $

    8,822

     

     

    $

    4.95

     

    % Change

     

     

     

     

    —

    %

     

    3.4

    %

    1 Diluted earnings per share are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts

    Schedule 10

    ALTRIA GROUP, INC.

    and Subsidiaries

    Condensed Consolidated Balance Sheets

    (dollars in millions)

    (Unaudited)

     

     

     

     

     

     

     

     

     

    December 31, 2024

     

    December 31, 2023

    Assets

     

     

     

    Cash and cash equivalents

    $

    3,127

     

     

    $

    3,686

     

    Inventories

     

    1,080

     

     

     

    1,215

     

    Other current assets

     

    306

     

     

     

    684

     

    Property, plant and equipment, net

     

    1,617

     

     

     

    1,652

     

    Goodwill and other intangible assets, net

     

    19,918

     

     

     

    20,477

     

    Investments in equity securities

     

    8,195

     

     

     

    10,011

     

    Other long-term assets

     

    934

     

     

     

    845

     

    Total assets

    $

    35,177

     

     

    $

    38,570

     

     

     

     

     

    Liabilities and Stockholders' Equity (Deficit)

     

     

     

    Current portion of long-term debt

    $

    1,527

     

     

    $

    1,121

     

    Accrued settlement charges

     

    2,354

     

     

     

    2,563

     

    Deferred gain from the sale of IQOS System commercialization rights

     

    —

     

     

     

    2,700

     

    Other current liabilities

     

    4,900

     

     

     

    4,935

     

    Long-term debt

     

    23,399

     

     

     

    25,112

     

    Deferred income taxes

     

    3,749

     

     

     

    2,799

     

    Accrued pension costs

     

    136

     

     

     

    130

     

    Accrued postretirement health care costs

     

    935

     

     

     

    1,079

     

    Other long-term liabilities

     

    365

     

     

     

    1,621

     

    Total liabilities

     

    37,365

     

     

     

    42,060

     

    Total stockholders' equity (deficit) attributable to Altria

     

    (2,238

    )

     

     

    (3,540

    )

    Noncontrolling interest

     

    50

     

     

     

    50

     

    Total liabilities and stockholders' equity (deficit)

    $

    35,177

     

     

    $

    38,570

     

     

     

     

     

    Total debt

    $

    24,926

     

     

    $

    26,233

     

     

    Schedule 11

    ALTRIA GROUP, INC.

    and Subsidiaries

    Supplemental Financial Data for Special Items

    For the Quarters Ended December 31,

    (dollars in millions)

    (Unaudited)

     

     

     

     

     

     

     

     

     

    Cost of

    Sales

    Marketing,

    administration

    and research

    costs

    Asset

    impairment

    and exit costs

    General

    corporate

    expenses

    Interest and

    other debt

    (income)

    expense, net

    (Income) losses

    from

    investments in

    equity securities

    2024 Special Items - (Income) Expense

     

     

     

     

     

     

    Acquisition, disposition and integration-related items

    $

    —

     

    $

    —

    $

    —

    $

    (14

    )

    $

    —

     

    $

    —

     

    Asset impairment, exit and implementation costs

     

    —

     

     

    33

     

    35

     

    —

     

     

    —

     

     

    —

     

    Tobacco and health and certain other litigation items

     

    —

     

     

    11

     

    —

     

    —

     

     

    —

     

     

    —

     

    ABI-related special items

     

    —

     

     

    —

     

    —

     

    —

     

     

    —

     

     

    41

     

    Cronos-related special items

     

    —

     

     

    —

     

    —

     

    —

     

     

    —

     

     

    (4

    )

     

     

     

     

     

     

     

    2023 Special Items - (Income) Expense

     

     

     

     

     

     

    NPM Adjustment Items

    $

    (14

    )

    $

    —

    $

    —

    $

    —

     

    $

    (21

    )

    $

    —

     

    Acquisition, disposition and integration-related items

     

    —

     

     

    —

     

    —

     

    21

     

     

    —

     

     

    —

     

    Tobacco and health and certain other litigation items

     

    —

     

     

    4

     

    —

     

    2

     

     

    —

     

     

    —

     

    ABI-related special items

     

    —

     

     

    —

     

    —

     

    —

     

     

    —

     

     

    35

     

    Cronos-related special items

     

    —

     

     

    —

     

    —

     

    —

     

     

    —

     

     

    (1

    )

    Note: This schedule is intended to provide supplemental financial data for certain income and expense items that management believes are not part of underlying operations and their presentation in Altria's consolidated statements of earnings. This schedule is not intended to provide, or reconcile, non-GAAP financial measures.

    Schedule 12

    ALTRIA GROUP, INC.

    and Subsidiaries

    Supplemental Financial Data for Special Items

    For the Years Ended December 31,

    (dollars in millions)

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of

    Sales

    Marketing,

    administration

    and research

    costs

    Asset

    impairment

    and exit

    costs

    General

    corporate

    expenses

    Interest and

    other debt

    (income)

    expense, net

    (Income)

    losses from

    investments

    in equity

    securities

    Gain on the sale of

    IQOS System

    commercialization

    rights

    2024 Special Items - (Income) Expense

     

     

     

     

     

     

     

    NPM Adjustment Items

    $

    (29

    )

    $

    —

    $

    —

    $

    —

    $

    2

     

    $

    —

     

    $

    —

     

    Acquisition, disposition and integration-related items

     

    —

     

     

    —

     

    —

     

    173

     

    —

     

     

    —

     

     

    (2,700

    )

    Asset impairment, exit and implementation costs

     

    —

     

     

    33

     

    389

     

    —

     

    —

     

     

    —

     

     

    —

     

    Tobacco and health and certain other litigation items

     

    —

     

     

    70

     

    —

     

    30

     

    1

     

     

    —

     

     

    —

     

    ABI-related special items

     

    —

     

     

    —

     

    —

     

    59

     

    3

     

     

    (60

    )

     

    —

     

    Cronos-related special items

     

    —

     

     

    —

     

    —

     

    —

     

    —

     

     

    18

     

     

    —

     

     

     

     

     

     

     

     

     

    2023 Special Items - (Income) Expense

     

     

     

     

     

     

     

    NPM Adjustment Items

    $

    (29

    )

    $

    —

    $

    —

    $

    —

    $

    (21

    )

    $

    —

     

    $

    —

     

    Acquisition, disposition and integration-related items

     

    —

     

     

    —

     

    —

     

    80

     

    (45

    )

     

    —

     

     

    —

     

    Tobacco and health and certain other litigation items

     

    —

     

     

    69

     

    —

     

    350

     

    11

     

     

    —

     

     

    —

     

    Loss on disposition of JUUL equity securities

     

    —

     

     

    —

     

    —

     

    —

     

    —

     

     

    250

     

     

    —

     

    ABI-related special items

     

    —

     

     

    —

     

    —

     

    —

     

    —

     

     

    89

     

     

    —

     

    Cronos-related special items

     

    —

     

     

    —

     

    —

     

    —

     

    —

     

     

    29

     

     

    —

     

    Note: This schedule is intended to provide supplemental financial data for certain income and expense items that management believes are not part of underlying operations and their presentation in our consolidated statements of earnings. This schedule is not intended to provide, or reconcile, non-GAAP financial measures.

    Schedule 13

    ALTRIA GROUP, INC.

    and Subsidiaries

    Calculation of Total Debt to Consolidated EBITDA and Net Debt to Consolidated EBITDA Ratios

    For the Twelve Months Ended December 31, 2024 1

    (dollars in millions)

    (Unaudited)

     

     

     

     

     

     

     

     

    Total

    Consolidated Net Earnings

     

    $

    11,264

     

    Interest and other debt expense, net

     

     

    1,037

     

    Provision for income taxes

     

     

    2,394

     

    Depreciation and amortization

     

     

    286

     

    EBITDA 2

     

     

    14,981

     

    (Income) loss from investments in equity securities and noncontrolling interests, net

     

     

    (652

    )

    Dividends from less than 50% owned affiliates

     

     

    139

     

    Gain on the sale of IQOS System commercialization rights

     

     

    (2,700

    )

    Asset impairment and exit costs

     

     

    389

     

    Consolidated EBITDA 3

     

    $

    12,157

     

     

     

     

     

     

     

    Current portion of long-term debt

     

    $

    1,527

     

    Long-term debt

     

     

    23,399

     

    Total Debt 4

     

     

    24,926

     

    Cash and cash equivalents 5

     

     

    3,127

     

    Net Debt 6

     

    $

    21,799

     

     

     

     

    Ratios:

     

     

    Total Debt / Consolidated Net Earnings

     

     

    2.2

     

    Total Debt / Consolidated EBITDA

     

     

    2.1

     

    Net Debt / Consolidated EBITDA

     

     

    1.8

    1 Calculated as of the end of the applicable quarter on a rolling four quarters basis.

     

     

     

    2 Reflects earnings before interest, taxes, depreciation and amortization ("EBITDA").

     

     

     

    3 Reflects the term "Consolidated EBITDA" as defined in Altria's revolving credit agreement.

     

    4 Reflects total debt as presented on Altria's Consolidated Balance Sheet at December 31, 2024. See Schedule 10.

     

    5 Reflects cash and cash equivalents as presented on Altria's Consolidated Balance Sheet at December 31, 2024. See Schedule 10.

     

    6 Reflects total debt, less cash and cash equivalents at December 31, 2024.

    Schedule 14

    ALTRIA GROUP, INC.

    and Subsidiaries

    Reconciliation of Reported OCI to Adjusted OCI

    For the Year Ended December 31, 2024

    (dollars in millions)

    (Unaudited)

     

     

     

     

     

     

     

     

     

     

     

    Smokeable

    Products

    Oral Tobacco

    Products

    All Other

    Total

    Net revenues

    $

    21,204

     

    $

    2,776

     

    $

    38

     

    $

    24,018

     

    Excise taxes

     

    (3,469

    )

     

    (105

    )

     

    —

     

     

    (3,574

    )

    Revenues net of excise taxes

    $

    17,735

     

    $

    2,671

     

    $

    38

     

    $

    20,444

     

     

     

     

     

     

    Reported operating companies income (OCI)

    $

    10,821

     

    $

    1,449

     

    $

    (414

    )

    $

    11,856

     

    NPM Adjustment Items

     

    (29

    )

     

    —

     

     

    —

     

     

    (29

    )

    Asset impairment, exit and implementation costs

     

    60

     

     

    362

     

     

    —

     

     

    422

     

    Tobacco and health and certain other litigation items

     

    70

     

     

    —

     

     

    —

     

     

    70

     

    Adjusted OCI

    $

    10,922

     

    $

    1,811

     

    $

    (414

    )

    $

    12,319

     

    Reported OCI margins 1

     

    61.0

    %

     

    54.2

    %

    (100+)%

     

    58.0

    %

    Adjusted OCI margins 1

     

    61.6

    %

     

    67.8

    %

    (100+)%

     

    60.3

    %

    1 Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.

    Schedule 15

    ALTRIA GROUP, INC.

    and Subsidiaries

    Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS

    For the Years Ended December 31, 2024 and 2022

    (Unaudited)

     

     

     

     

     

     

     

     

     

    For the Years Ended December 31,

     

    Compounded

    Annual Growth

    Rate

     

     

    2024

     

    2022

     

    Reported diluted EPS

     

    $

    6.54

     

     

    $

    3.19

     

     

    43.2

    %

    NPM Adjustment Items

     

     

    (0.01

    )

     

     

    (0.03

    )

     

     

    Acquisition, disposition and integration-related items

     

     

    (1.08

    )

     

     

    —

     

     

     

    Asset impairment, exit and implementation costs

     

     

    0.18

     

     

     

    —

     

     

     

    Tobacco and health and certain other litigation items

     

     

    0.04

     

     

     

    0.05

     

     

     

    JUUL changes in fair value

     

     

    —

     

     

     

    0.81

     

     

     

    ABI-related special items

     

     

    —

     

     

     

    1.12

     

     

     

    Cronos-related special items

     

     

    0.01

     

     

     

    0.10

     

     

     

    Income tax items

     

     

    (0.56

    )

     

     

    (0.40

    )

     

     

    Adjusted diluted EPS

     

    $

    5.12

     

     

    $

    4.84

     

     

    2.9

    %

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250129043383/en/

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    Investor Relations

    804-484-8222

    Altria Client Services

    Media Relations

    804-484-8897

    www.altria.com/contact-us/media

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      Medicinal Chemicals and Botanical Products
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    • Clarke Ian L.T. bought $44,625 worth of shares (1,100 units at $40.57), increasing direct ownership by 18% to 7,145 units (SEC Form 4)

      4 - ALTRIA GROUP, INC. (0000764180) (Issuer)

      11/8/23 3:03:21 PM ET
      $MO
      Medicinal Chemicals and Botanical Products
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    • Altria Group, Inc. Announces Retirement of Director Jacinto J. Hernandez From Board of Directors

      Jacinto J. Hernandez, a director of Altria Group, Inc. ("Altria"), retired from service on our Board of Directors effective February 23, 2024. Mr. Hernandez will continue to serve Altria as a strategic advisor under a 5-year advisory services agreement. "We thank Jacinto for his service on our Board," said Kathryn McQuade, Altria's independent Board Chair. "Our Board benefited from his industry experience and financial expertise." "I joined Altria's Board because I am inspired by Altria's Vision to responsibly lead the transition of adult smokers to a smoke-free future," said Mr. Hernandez. "I am pleased that this agreement will allow me to focus my attention on helping Altria pursue it

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    • Seasoned Financial Expert Max Yzaguirre Named Strategic Advisor of FireFly Automatix, Leader in AV and EV-Driven Professional Turfgrass Mowing Technology

      -Yzaguirre joins a list of seasoned professionals on FireFly's team with specific expertise in initiating and growing businesses in evolving market conditions- FireFly Automatix, Inc., the de facto industry leader in AV and EV professional turfgrass mowing technology, today announced the appointment of financial and leadership expert M. Max Yzaguirre as a strategic advisor to CEO Andrew Limpert and the board of directors. Yzaguirre's appointment follows the recent additions of former WPP Group CFO Paul Richardson and capital markets professional Liz Hocker to FireFly's board. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/202401

      1/23/24 9:00:00 AM ET
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    • Altria Group, Inc. Announces Retirement of Director Nabil Y. Sakkab From Board of Directors

      Nabil Y. Sakkab, a director of Altria Group, Inc. ("Altria") since 2008, will retire from service on our Board of Directors following the completion of his current term. Consequently, Mr. Sakkab will not stand for re-election to the Board of Directors at Altria's 2024 Annual Meeting of Shareholders, which Altria anticipates holding on May 16, 2024. "Nabil's contributions have significantly benefited Altria over the past 15 years," said Kathryn McQuade, Altria's independent Chair of the Board. "We thank him for his long and distinguished service and wish him the very best upon his retirement." Dr. Sakkab is Chair of the Innovation Committee and is a member of the Executive, Finance, and

      10/25/23 4:30:00 PM ET
      $MO
      Medicinal Chemicals and Botanical Products
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    • SEC Form 10-Q filed by Altria Group Inc.

      10-Q - ALTRIA GROUP, INC. (0000764180) (Filer)

      4/29/25 7:26:00 AM ET
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      Medicinal Chemicals and Botanical Products
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    • Altria Group Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

      8-K - ALTRIA GROUP, INC. (0000764180) (Filer)

      4/29/25 7:03:23 AM ET
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      Medicinal Chemicals and Botanical Products
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    • SEC Form DEFA14A filed by Altria Group Inc.

      DEFA14A - ALTRIA GROUP, INC. (0000764180) (Filer)

      4/3/25 9:03:17 AM ET
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      Medicinal Chemicals and Botanical Products
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    • SEC Form SC 13G/A filed by Altria Group Inc. (Amendment)

      SC 13G/A - ALTRIA GROUP, INC. (0000764180) (Subject)

      2/13/24 4:58:48 PM ET
      $MO
      Medicinal Chemicals and Botanical Products
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    • SEC Form SC 13G/A filed by Altria Group Inc. (Amendment)

      SC 13G/A - ALTRIA GROUP, INC. (0000764180) (Subject)

      2/13/23 2:49:28 PM ET
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      Medicinal Chemicals and Botanical Products
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    • SEC Form SC 13G/A filed by Altria Group Inc. (Amendment)

      SC 13G/A - ALTRIA GROUP, INC. (0000764180) (Subject)

      2/9/23 10:54:46 AM ET
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      Medicinal Chemicals and Botanical Products
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    • Altria downgraded by Deutsche Bank

      Deutsche Bank downgraded Altria from Buy to Hold

      4/1/25 3:04:54 PM ET
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    • Morgan Stanley initiated coverage on Altria with a new price target

      Morgan Stanley initiated coverage of Altria with a rating of Equal-Weight and set a new price target of $54.00

      1/16/25 7:47:52 AM ET
      $MO
      Medicinal Chemicals and Botanical Products
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    • Altria upgraded by BofA Securities with a new price target

      BofA Securities upgraded Altria from Neutral to Buy and set a new price target of $65.00 from $55.00 previously

      12/6/24 7:56:47 AM ET
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      Medicinal Chemicals and Botanical Products
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    • Chief Executive Officer Gifford William F. Jr. was granted 31,037 shares and covered exercise/tax liability with 37,243 shares, decreasing direct ownership by 0.89% to 689,127 units (SEC Form 4)

      4 - ALTRIA GROUP, INC. (0000764180) (Issuer)

      4/18/25 2:45:32 PM ET
      $MO
      Medicinal Chemicals and Botanical Products
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    • Chief Executive Officer Gifford William F. Jr. was granted 48,911 shares and covered exercise/tax liability with 55,488 shares, decreasing direct ownership by 0.94% to 695,333 units (SEC Form 4)

      4 - ALTRIA GROUP, INC. (0000764180) (Issuer)

      3/3/25 3:08:57 PM ET
      $MO
      Medicinal Chemicals and Botanical Products
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    • SVP, Chief HR Off. & CCO Whitaker Charles N. was granted 8,568 shares and covered exercise/tax liability with 7,511 shares, increasing direct ownership by 0.57% to 187,627 units (SEC Form 4)

      4 - ALTRIA GROUP, INC. (0000764180) (Issuer)

      3/3/25 3:08:49 PM ET
      $MO
      Medicinal Chemicals and Botanical Products
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