Altria Group Reports Mixed Financial Results for Nine Months and Third Quarter 2024

Altria Group, Inc. reported its financial results for the nine months and three months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the nine months ended September 30, 2024, Altria's net revenues totaled $18,044 million, a decrease of $464 million (2.5%) from $18,508 million in the same period of 2023. The decline was primarily attributed to lower revenues in the smokeable products segment, which saw a 10.6% decrease in shipment volume. Operating income also fell to $8,359 million, down from $8,751 million, reflecting a decrease of $392 million (4.5%). Despite these challenges, net earnings increased significantly to $8,225 million, up 35.5% from $6,070 million in the prior year, driven by a pre-tax gain of $2.7 billion from the sale of IQOS commercialization rights to Philip Morris International.

In the third quarter of 2024, net earnings rose to $2,293 million, a 5.9% increase from $2,166 million in the same quarter of 2023. This growth was supported by higher operating income, which increased by $63 million (2.0%) to $3,152 million, despite a slight decline in net revenues to $6,259 million from $6,281 million.

Altria's strategic initiatives included a significant increase in its share repurchase program, which was raised from $1.0 billion to $3.4 billion in March 2024. The company repurchased 67.6 million shares at a cost of $3,090 million for the nine months ended September 30, 2024. Additionally, the Board of Directors approved a 4.1% increase in the quarterly dividend rate to $1.02 per share, resulting in an annualized dividend rate of $4.08 per share.

The company also completed the acquisition of NJOY Holdings in June 2023 for approximately $2.9 billion, which included cash payments and contingent cash payments based on FDA authorizations. As of September 30, 2024, Altria recorded a pre-tax charge of $140 million related to changes in the fair value of contingent payments associated with this acquisition.

Financially, Altria's total assets decreased to $34,167 million from $38,570 million at the end of 2023, while total liabilities also fell to $37,585 million from $42,060 million. The company reported total stockholders’ equity (deficit) of $(3,418) million, a slight improvement from $(3,490) million at the end of 2023.

Overall, Altria's performance in the latest fiscal period reflects a complex landscape of declining revenues in traditional tobacco products, strategic acquisitions, and significant gains from asset sales, alongside ongoing challenges in the regulatory environment and market conditions.