Marlboro Maker Altria Clocks 2.4% Revenue Decline In Q1; Reaffirms FY22 EPS Outlook

Altria Group Inc MO reported a first-quarter FY22 sales decline of 2.4% year-on-year to $5.89 billion. Revenues net of excise taxes fell 1.3% to $4.82 billion.
Net revenues for smokeable products increased 0.3%, and oral tobacco products fell 2.1%.
Total cigarette volume declined 12%, with Marlboro shipment volume down 11.1%.
Marlboro retail share of the total cigarette category decreased by 0.4 share points to 42.6%, primarily due to increased macroeconomic pressures on Adult Tobacco Consumer (ATC) disposable income. Marlboro's retail share was unchanged from 4Q21.
Gross profit rose 3.1% Y/Y to $3.4 billion, while the margin expanded 300 basis points to 57.2%.
Operating margin was 48.9%, and operating income for the quarter increased by 7.2% to $2.9 billion.
Adjusted EPS of $1.12 beat the analyst consensus of $1.09.
Altria held $5.4 billion in cash and equivalents as of March 31, 2022. Total debt of Altria amounted to $27.9 billion.
Outlook: Altria reaffirmed its FY22 adjusted EPS outlook of $4.79 - $4.93, versus the consensus of $4.84.
Price Action: MO shares are trading higher by 0.38% at $55.13 on the last check Thursday.
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