Core Viewpoint - Altria Group, Inc. and Philip Morris International Inc. are two leading players in the tobacco industry, with diverging strategies as they transition from traditional tobacco to reduced-risk products (RRPs) [1][2]. Altria Group, Inc. - Altria commands over 40% of the U.S. cigarette market, but faces declining cigarette volumes and reduced pricing power, with net revenues from smokeable products falling 5.8% to $4,622 million in Q1 2025 [5][6]. - The company is focusing on building a smoke-free portfolio, particularly in modern oral nicotine and vapor products, with its on! nicotine pouch seeing an 18% year-over-year growth in shipment volumes [6][7]. - Altria's e-vapor efforts have faced challenges, including the removal of NJOY ACE from the market due to regulatory issues, but the company aims to innovate and develop compliant vapor products [7][8]. - Operating solely in the U.S. presents both advantages and challenges, as regulatory pressures increase, limiting innovation and complicating execution [8]. Philip Morris International Inc. - Philip Morris is leading the global shift towards a smoke-free future, with its IQOS heat-not-burn device gaining traction in markets like Japan and Europe [9][10]. - The company has strengthened its smoke-free product portfolio through the acquisition of Swedish Match, enhancing its position in the oral nicotine segment [10][11]. - In Q1 2025, smoke-free products contributed 42% of total revenues and 44% of gross profit, with a 15% year-over-year revenue increase [11]. - Philip Morris benefits from a global footprint, allowing for better regulatory risk diversification and broader growth opportunities compared to Altria [12]. Financial Performance and Valuation - The Zacks Consensus Estimate for Philip Morris' 2025 EPS has increased by 3.3% to $7.47, indicating a projected growth of 13.7%, while Altria's estimate has risen by 1.3% to $5.35, reflecting a growth of 4.5% [13]. - Philip Morris trades at a forward P/E of 22.20x, while Altria trades at 10.97x, indicating that investors are willing to pay a premium for Philip Morris' growth visibility [14]. - Over the past year, Philip Morris' stock has gained 73.9%, outperforming Altria's 29.6% and the industry's 54.5%, showcasing investor confidence in its growth strategy [16]. Conclusion - Philip Morris stands out with its successful transition to RRPs, global diversification, and stronger earnings growth outlook, while Altria's U.S. market dominance is tempered by regulatory challenges and a slower transition to RRPs [17].

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting individual research before making investment decisions [2]

| | ANNUAL MEETING OF SHAREHOLDERS | | | --- | --- | --- | | UAL MEETING OF SHAREHOLDERS | | lease limit | | | | possible, a | | Thursday, May 15, 2025 | Thursday, May 15, 2025 | al meeting | | 9:00 a.m. (Eastern Time) | 9:00 a.m. (Eastern Time) | | | AGENDA | RULES OF CONDUCT | d otherwise | | | | id to those | | | Welcome to Altria Group, Inc.'s 2025 Annual Meeting of Shareholders ("Annual Meeting"). It is | nformation | | | our goal to conduct a fair and informative Annual Meeting, and we ask that you ob ...

Financial Data and Key Metrics Changes - Altria reported that 80.28% of its common stock was represented at the annual meeting, indicating a quorum was present [8] - The preliminary voting results showed that over 96% of shares voted in favor of the election of directors and the selection of PricewaterhouseCoopers as the independent registered public accounting firm for 2025 [22][23] - Shareholders approved the compensation of named executive officers and the 2025 performance incentive plan with more than 95% of shares voting in favor [22][23] Business Line Data and Key Metrics Changes - The company emphasized its commitment to transitioning adult smokers to smoke-free products, aligning with societal demand and creating shareholder value [24] - Altria is focusing on a portfolio approach to meet consumer needs, with plans to enhance its product offerings in the smoke-free category [40][41] Market Data and Key Metrics Changes - The company noted that nicotine use among underage consumers is declining, and menthol cigarette use is at generational lows for 2024 [53] - Altria is monitoring the impact of tariffs on consumer behavior, indicating that current effects on cost inputs are immaterial [61] Company Strategy and Development Direction - Altria's vision is to responsibly lead the transition of adult smokers to a smoke-free future, which is seen as a significant opportunity for harm reduction [24][28] - The company is advocating for the FDA to expedite the authorization of new products to enhance its portfolio and meet consumer demands [59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the FDA's ability to function as a regulatory body and the potential for a marketplace filled with authorized products [64] - The company remains committed to its vision despite challenges, emphasizing the importance of harm reduction and consumer transition to smoke-free alternatives [64] Other Important Information - Altria's corporate responsibility reporting highlights progress towards its vision of a smoke-free future [24] - The company has resources available for consumers who wish to quit using tobacco products [32] Q&A Session Summary Question: Do you ever feel sorry for all the lives lost and illnesses caused through the use of your tobacco products? - Management emphasized the importance of harm reduction and the transition to smoke-free products as a way to reduce risks associated with nicotine [27][28] Question: Shouldn't your focus be working on alternatives to addiction? - Management reiterated the commitment to transitioning adult smokers to smoke-free products while acknowledging the potential for harm reduction [29][30] Question: Were past statements about nicotine's addictiveness incorrect? - Management acknowledged nicotine's addictive nature and highlighted resources available for consumers wishing to quit [31][32] Question: How many families have to bury their loved ones before you admit profit matters above human life? - Management reiterated the belief in harm reduction and the potential benefits of transitioning to smoke-free products [33][34] Question: Why support someone already addicted to tobacco to start using more products that they could get addicted to? - Management pointed out the importance of providing options for consumers who wish to transition to less harmful products [35][36] Question: Are flavored tobacco products attractive to teens? - Management stated that they believe kids should not use tobacco products and highlighted efforts to prevent youth access [37][38] Question: What is the timeframe for harm reduction products to outsell traditional cigarettes? - Management indicated that it is difficult to pinpoint an exact date but emphasized the need to evolve with consumer preferences [40][42] Question: Will the company consider apologizing for past marketing practices? - Management stated that all marketing practices are committed to responsible marketing to adult consumers [43][44] Question: What will the dividend policy be going forward? - Management described a progressive dividend policy aiming for annual increases in the mid-single digits [48][49] Question: How are tariffs affecting Altria's business? - Management noted that tariffs currently have an immaterial impact on cost inputs but will continue to monitor consumer behavior [61] Question: Will Altria continue its efforts to create a smoke-free future despite FDA and CDC cuts? - Management affirmed the company's commitment to its vision and the importance of regulatory authorization for new products [64]

Core Viewpoint - The article emphasizes a personal investment strategy focused on growth and dividend income, aiming for an easy retirement through a portfolio that generates monthly dividend income and benefits from reinvestment and annual increases [1]. Group 1 - The investment strategy is centered around compounding dividend income and growth [1]. - The portfolio is structured to provide monthly dividend income, which is expected to grow through reinvestment and yearly increases [1]. - The author has disclosed a beneficial long position in several stocks, including JEPQ, MO, BCX, BP, and XOM, through various means such as stock ownership and options [1].

Core Viewpoint - Altria Group Inc. experienced a 2.1% decline in share price following the release of its first-quarter 2025 results, contrasting with slight gains in the broader market and its industry peers [1][6]. Financial Performance - Altria reported first-quarter adjusted earnings per share (EPS) of $1.23, exceeding the Zacks Consensus Estimate of $1.17, reflecting a 6% year-over-year growth [6]. - Net revenues fell by 5.7% to $5.26 billion, primarily due to weaker cigarette shipment volumes [6][9]. - The Zacks Consensus Estimate for Altria's EPS for 2025 and 2026 has increased by 0.8% and 1.1%, respectively, indicating a positive outlook [12]. Market Comparison - Among tobacco peers, Turning Point Brands, Inc. outperformed with a 17.9% return, while Philip Morris International and British American Tobacco saw declines of 2.5% and 3.3%, respectively [2]. - Altria's forward 12-month price-to-earnings (P/E) ratio is 10.51x, significantly lower than the industry average of 14.55x and the S&P 500's average of 20.70x, suggesting it is undervalued [15][16]. Business Segments - Altria's Smokeable Products segment faced revenue softness due to declining shipment volumes, but robust pricing strategies helped mitigate margin erosion [8][9]. - The oral nicotine pouch brand on! saw an 18% increase in shipment volumes, reaching over 39 million cans, and expanded its market share in the nicotine pouch segment to 17.9% [10]. - The e-vapor segment faced challenges with the discontinuation of NJOY ACE, resulting in a non-cash impairment charge of $873 million, but the company remains committed to innovation in this space [11]. Investor Sentiment - The divergence between solid earnings performance and stock price weakness raises questions about whether the pullback is a short-term overreaction or a long-term buying opportunity [7]. - Altria's defensive business model and attractive valuation make it a stable investment option, especially for value-focused investors [19].

Investment Rating - The report indicates a positive outlook for the new tobacco products industry, with a focus on the growth potential of smokeless tobacco and nicotine pouch segments [8]. Core Insights - The global market for new tobacco products is projected to reach $86.96 billion in 2024, reflecting a year-on-year growth of 13.1%, with significant contributions from smokeless tobacco, vaping, heated tobacco, and oral nicotine products [2][17]. - The report highlights the strong performance of smokeless tobacco and nicotine pouch products, with the latter expected to grow by 51.0% year-on-year in 2024 [2][3]. - The market dynamics are shifting, with North America, Western Europe, and Asia-Pacific regions showing robust growth, particularly in the U.S., which remains the largest market for new tobacco products [23][24]. Summary by Sections 1. Global Market Overview - The new tobacco products market is expanding steadily, with a compound annual growth rate (CAGR) of 16.8% from 2017 to 2024 [17]. - By 2025, the market is expected to continue its growth trajectory, with projections indicating increases across all product categories [2][17]. 2. Nicotine Pouches - The global nicotine pouch market is experiencing rapid growth, with a projected market size of 21.2 billion pouches in 2024, marking a 37% increase year-on-year [3]. - Major tobacco companies dominate this segment, with significant market shares held by PMI, BAT, and Altria [3]. 3. Philip Morris International (PMI) - PMI's revenue from new tobacco products is expected to reach $14.66 billion in 2024, a 17.0% increase, with heated tobacco product shipments growing by 11.5% [4]. - The number of PMI's new tobacco users has reached 32.2 million, with a 72.0% replacement rate of traditional cigarette consumers [4]. 4. British American Tobacco (BAT) - BAT is accelerating its "smokeless strategy," with its modern oral tobacco segment showing a 47% revenue increase [5]. - The launch of the Glo Hilo product is anticipated to disrupt the current heated tobacco market dynamics [5]. 5. Altria - Altria's NJOY brand has shown significant growth, with a 15.3% increase in sales volume in 2024 [6]. - The on! brand also experienced a 40.2% increase in sales, indicating a strong performance in the oral nicotine segment [6]. 6. Imperial Brands - Imperial Brands reported a 24.2% revenue increase in its new tobacco segment, driven by strong performance in Europe [6]. - The company is actively launching new products to cater to changing consumer preferences [6]. 7. Japan Tobacco - Japan Tobacco's new tobacco revenue is projected to reach 989 billion yen in 2024, reflecting a 21.1% increase [7]. - The Ploom brand is expanding its presence in emerging markets, contributing to overall sales growth [7]. 8. Investment Recommendations - The report recommends focusing on companies like Smoore International, which is well-positioned to benefit from the expanding vaping market and partnerships with major players like BAT and NJOY [8].

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most of which are rated 5 stars, indicating high satisfaction [1] Group 2 - The article includes a disclosure from the analyst stating a beneficial long position in PEP shares, indicating a personal investment interest [2] - It clarifies that the opinions expressed are those of the author and not influenced by compensation from any company mentioned [2] Group 3 - Seeking Alpha emphasizes that past performance does not guarantee future results, indicating a cautionary note regarding investment outcomes [3] - The platform states that it does not provide personalized investment advice and that views expressed may not represent the entire organization [3]

Group 1 - Altria reported mixed results for its first fiscal quarter of FY 2025, indicating challenges in its business operations [1] - The company is experiencing negative growth in its core tobacco segment, which is a significant concern for its overall performance [1] - New challenges have emerged in the alternative products category, further complicating the company's growth prospects [1]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Altria Group, Inc. and its officers or directors [1] Group 1: Legal Investigation - Pomerantz LLP is representing investors of Altria Group, Inc. in an investigation regarding claims of securities fraud [1] - Investors are encouraged to contact Pomerantz LLP for more information about the investigation [1] Group 2: Stock Performance and Analyst Ratings - On April 2, 2025, Deutsche Bank downgraded Altria's stock rating from "Buy" to "Hold" due to regulatory uncertainties following a ruling by the U.S. International Trade Commission [3] - Following the downgrade, Altria's stock price decreased by $1.67, or 2.84%, closing at $57.12 per share on the same day [3]