Altria Group Inc (MO, Financial) released its third-quarter and nine-months business results on October 26, 2023. Despite a challenging operating environment, the company's traditional tobacco businesses remained resilient, providing significant cash returns to shareholders.
Financial Performance
Altria reported net revenues of $6,281 million for Q3 2023, marking a 4.1% decrease compared to Q3 2022. For the first nine months of 2023, net revenues stood at $18,508 million, a 2.5% decrease from the same period in 2022. The company's reported diluted EPS for Q3 2023 was $1.22, a significant increase from the previous year, while the adjusted diluted EPS was $1.28.
Business Update
On June 1, 2023, Altria completed its acquisition of NJOY Holdings, Inc. The company has been focusing on strengthening NJOY's global supply chain and expanding the distribution of ACE, expecting to reach a total of 70,000 stores by year-end.
Shareholder Returns
In Q3 2023, Altria repurchased 5.9 million shares at an average price of $44.26, for a total cost of $260 million. The company also paid dividends of $1.6 billion in the third quarter and $5.0 billion in the first nine months of 2023. Altria's Board increased the regular quarterly dividend by 4.3% in August, marking the 58th increase in the past 54 years.
2023 Full-Year Guidance
Altria has narrowed its guidance for 2023 full-year adjusted diluted EPS to be in a range of $4.91 to $4.98, representing a growth rate of 1.5% to 3% from an adjusted diluted EPS base of $4.84 in 2022. The company continues to monitor conditions related to the economy, adult tobacco consumer dynamics, and regulatory and legislative developments.
Explore the complete 8-K earnings release (here) from Altria Group Inc for further details.
