Altria's Marlboro Shipment Volume Plunges 8.7% In Q1 - What's Going On?

Altria Group Inc MO reported a first-quarter FY24 sales decline of 2.5% year-on-year to $5.58 billion, beating the analyst consensus estimate of $4.71 billion.

The revenue decrease was primarily driven by lower net revenues in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment and the all other category.

Revenues net of excise tax decreased 1% to $4.7 billion. Revenue for smokeable products decreased by 3.6%, and oral tobacco products grew by 3.7%.

Smokeable products segment reported domestic cigarette shipment volume decrease of 10%, with Marlboro down 8.7%.

Gross profit fell 1.5% Y/Y to $3.280 billion. The operating income for the quarter decreased by 3% to $2.7 billion.

Adjusted EPS of $1.15 was in line with the consensus estimate. 

In the first quarter, the company paid dividends of $1.7 billion. After the completion of the accelerated share repurchase program, Altria expects to have $1 billion remaining under the currently authorized $3.4 billion share repurchase program.

Altria held $3.6 billion in cash and equivalents as of March-end. Total debt of Altria amounted to $25.042 billion.

“In spite of the absence of an effective regulatory environment, we saw continued early momentum from NJOY and believe our businesses are on track to deliver against full-year plans,” said CEO Billy Gifford.

Outlook Reaffirmed: Altria sees FY24 adjusted EPS of $5.05 – $5.17 versus an estimate of $5.08.

The company expects 2024 adjusted EPS growth to be weighted to the second half of the year. 

Price Action: MO shares are trading higher by 0.19% at $43.00 in premarket at the last check Thursday.

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