Altria Q1 Sales Decline Dragged By Lower Smokeable Products Shipment Volume, Higher Promotional Investments

Altria Group Inc MO reported a first-quarter FY23 sales decline of 2.9% year-on-year to $5.7 billion
Revenues net of excise taxes fell 1.2% Y/Y and missed the consensus of $4.90 billion.
Lower net revenues in the smokeable products segment primarily drove the revenue decline.
Revenue for smokeable products decreased by 3.3%, and oral tobacco products rose by 2.4%.
Smokeable products segment reported domestic cigarette shipment volume decrease of 11.4%, with Marlboro down 10.4%.
Gross profit fell 1.3% Y/Y to $3.3 billion. The operating income for the quarter decreased by 4.4% to $2.75 billion.
Adjusted EPS of $1.18 missed the analyst consensus of $1.19.
Altria held $3.9 billion in cash and equivalents as of March 31, 2023. The total debt of Altria amounted to $25.4 billion.
Outlook: Altria reaffirmed its FY23 adjusted EPS outlook of $4.98 - $5.13 versus the consensus of $5.05.
Also Read: Juul Is Divested - Altria Now Focuses On Development Efforts For Smoke-Free Products, Updates 2028 Goals
Price Action: MO shares are trading lower by 0.59% at $46.42 on the last check Thursday.

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