Altria(US:MO)2025-10-30 11:21Financial Performance - Net revenues for the nine months ended September 30, 2025, were $17,433 million, a decrease of 3.4% from $18,044 million in the same period of 2024[15]. - Gross profit for the nine months ended September 30, 2025, was $10,911 million, compared to $10,763 million for the same period in 2024, reflecting a slight increase of 1.3%[15]. - Net earnings for the nine months ended September 30, 2025, were $5,830 million, down 29.1% from $8,225 million in the same period of 2024[15]. - Basic and diluted earnings per share for the nine months ended September 30, 2025, were $3.45, compared to $4.75 for the same period in 2024, representing a decrease of 27.7%[15]. - Operating income for the nine months ended September 30, 2025, was $8,248 million, slightly down from $8,359 million in 2024[87]. - Earnings before income taxes for the nine months ended September 30, 2025, were $7,876 million, a decline of 27.5% compared to $10,881 million in 2024[102]. - For the nine months ended September 30, 2025, reported net earnings decreased by 29.1% to $5.83 billion, and diluted EPS decreased by 27.4% to $3.45 compared to the same period in 2024[208]. - Adjusted net earnings for the same period increased by 3.6% to $6.97 billion, while adjusted diluted EPS rose by 5.9% to $4.12 compared to 2024[208]. Assets and Liabilities - Total current assets increased to $5,119 million as of September 30, 2025, from $4,513 million as of December 31, 2024, marking a growth of 13.4%[10]. - Total liabilities increased to $37,604 million as of September 30, 2025, compared to $37,365 million as of December 31, 2024, an increase of 0.6%[12]. - The carrying value of the company's total long-term debt was $25.7 billion as of September 30, 2025, compared to $24.9 billion at December 31, 2024[73]. - The current portion of long-term debt rose to $1,569 million as of September 30, 2025, from $1,527 million as of December 31, 2024, an increase of 2.8%[12]. - The total stockholders' equity (deficit) attributable to Altria was $(2,646) million as of September 30, 2025, compared to $(2,238) million as of December 31, 2024[12]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $6,019 million, compared to $5,413 million in 2024, indicating an increase of about 11.2%[24]. - Total cash, cash equivalents, and restricted cash at the end of September 2025 amounted to $3,496 million, an increase from $3,158 million at the beginning of the period[27]. - The company repurchased $712 million worth of common stock in the nine months ended September 30, 2025, at an average price of $58.08 per share[37]. - The net cash used in investing activities for the nine months ended September 30, 2025, was $(139) million, compared to $2,238 million in 2024[26]. - The company experienced losses from investments in equity securities amounting to $(398) million for the nine months ended September 30, 2025[24]. Dividends and Shareholder Returns - Cash dividends declared were $3.10 per share for the nine months ended September 30, 2025, totaling $5,231 million[19]. - The company declared cash dividends of $1.06 per share in August 2025, up from $1.02 per share, marking a 3.9% increase[33]. Legal and Regulatory Matters - The company recorded pre-tax charges of $44 million for tobacco and health litigation for the nine months ended September 30, 2025[115]. - PM USA has paid approximately $1.1 billion in judgments and settlements since October 2004, with interest totaling approximately $246 million as of September 30, 2025[116]. - The number of individual smoking and health cases pending against the company increased to 181 as of October 27, 2025, from 167 a year earlier[119]. - In October 2025, a jury awarded $1 million in compensatory damages and $5.5 million in punitive damages against PM USA and R.J. Reynolds in the Perez-Trinidad case[125]. - PM USA is named as a defendant in seven class actions filed in Canadian provinces, with a global settlement amount of CAD $32.5 billion agreed upon by other tobacco manufacturers[141]. Market Trends and Consumer Behavior - The discount share of the cigarette category reached 32.2% in Q3 2025, an increase of 2.4 share points from Q3 2024, indicating a shift in consumer preferences[202]. - Estimated domestic cigarette industry volume declined by 8% in Q3 2025 compared to Q3 2024, with PM USA's domestic cigarette shipment volume declining by an estimated 9%[202]. - The U.S. nicotine pouch category grew to 55.7% of the U.S. oral tobacco category, an increase of 11.1 share points from Q3 2024[202]. - Inflationary pressures on discretionary income have constrained consumer spending, particularly affecting lower-income tobacco consumers[201]. - Flavored disposable e-vapor products represent over 60% of the e-vapor category, with regulatory actions being taken against illicit products[204]. Strategic Initiatives - The company expects to complete the design and detailed plans for the Optimize & Accelerate initiative by early 2026, aiming to enhance organizational efficiency[56]. - Total pre-tax charges for the Optimize & Accelerate initiative are estimated to be approximately $125 million, with $111 million incurred as of September 30, 2025[57].