Altria(US:MO)2025-04-29 11:03Financial Performance - Altria reported Q1 2025 net revenues of $5,259 million, a decrease of 5.7% compared to Q1 2024[3]. - Adjusted diluted EPS for Q1 2025 increased by 6.0% to $1.23, while reported diluted EPS decreased by 47.9% to $0.63[3][23]. - Net revenues for Q1 2025 were $5,259 million, a decrease of 5.7% compared to $5,576 million in Q1 2024[63]. - Gross profit for Q1 2025 was $3,249 million, down 0.9% from $3,280 million in Q1 2024[63]. - Net earnings for Q1 2025 were $1,077 million, representing a significant decline of 49.4% from $2,129 million in Q1 2024[70]. - Diluted earnings per share (EPS) for Q1 2025 were $0.63, a decrease of 47.9% compared to $1.21 in Q1 2024[70]. - Operating companies income for Q1 2025 was $1,888 million, down 32.9% from $2,813 million in Q1 2024[63]. - The company incurred acquisition-related expenses of $34 million and asset impairment costs of $873 million in Q1 2025[78]. Segment Performance - The smokeable products segment saw a 13.7% decrease in domestic cigarette shipment volume, attributed to industry decline and retail share losses[37]. - Total smokeable products shipment volume decreased by 13.4% to 14,609 million sticks in Q1 2025 from 16,867 million sticks in Q1 2024[39]. - Smokeable products generated net revenues of $4,622 million in Q1 2025, a decrease of 5.8% from $4,906 million in Q1 2024[65]. - Net revenues for oral tobacco products increased by 0.5% to $654 million in Q1 2025 from $651 million in Q1 2024[44]. - Reported OCI for oral tobacco products decreased by 0.5% to $433 million in Q1 2025 from $435 million in Q1 2024[44]. - Total oral tobacco products shipment volume decreased by 5.0% to 175.4 million cans in Q1 2025 from 184.6 million cans in Q1 2024[46]. - The oral tobacco products segment's shipment volume decreased by an estimated 1% when adjusted for calendar differences and trade inventory movements[48]. Market Share and Retail Performance - Marlboro's retail share of total cigarettes declined by 1.0 percentage points to 41.0% in Q1 2025 compared to 42.0% in Q1 2024[40]. - Copenhagen's retail share decreased by 3.2 percentage points to 16.9% in Q1 2025 compared to 20.1% in Q1 2024[50]. - The U.S. nicotine pouch category grew to 49.1% of the U.S. oral tobacco category, an increase of 8.7 percentage points versus the prior year[51]. - The total cigarette industry discount retail share increased by 1.8 percentage points to 30.9% compared to the prior year[41]. - Overall, the company is experiencing a downward trend in retail shares for key products, indicating potential challenges in market performance[86]. Guidance and Future Outlook - The company expects full-year 2025 adjusted diluted EPS to be in the range of $5.30 to $5.45, reflecting a growth rate of 2% to 5% from a base of $5.19 in 2024[12][14]. - Altria's guidance for 2025 considers the impact of increased tariffs and assumes limited effects from enforcement in the illicit e-vapor market[13][14]. - The company anticipates continued challenges in the credit and capital markets, which may impact future performance[61]. Asset and Liability Overview - Total assets increased to $35,760 million as of March 31, 2025, compared to $35,177 million at the end of 2024[76]. - Total liabilities rose to $39,220 million, up from $37,365 million at the end of 2024, with total debt increasing to $26,059 million[76]. - Cash and cash equivalents increased significantly to $4,726 million in Q1 2025, up from $3,127 million at the end of 2024[76]. - The company reported a total of $3,032 million in accrued settlement charges as of March 31, 2025, compared to $2,354 million at the end of 2024[76]. Impairment and Charges - Altria recorded a non-cash impairment charge of $873 million related to e-vapor reporting unit goodwill in Q1 2025[6][26]. - The company reported an impairment of goodwill amounting to $873 million in Q1 2025[63]. - The segment detail of excise taxes on products sold was $740 million in Q1 2025, down from $859 million in Q1 2024[68]. - Losses from investments in equity securities totaled $143 million in Q1 2025, compared to losses of $295 million in Q1 2024[68].