Q2 2024 Altria Group Inc Earnings Call Transcript
Key Points
- Altria Group Inc (MO) reported strong performance in its innovative smoke-free products, with NJOY showing significant volume and share growth.
- NJOY received the first and only marketing granted orders from the FDA for menthol e-vapor products, marking a significant regulatory milestone.
- The company returned significant value to shareholders, delivering more than $5.8 billion through share repurchases and dividends in the first half of the year.
- Altria Group Inc (MO) saw strong results from its oral tobacco product, on!, which grew its retail share and shipment volume significantly.
- The company maintained a strong balance sheet with a debt-to-EBITDA ratio of 2.1 times, aligning with its capital structure goal of approximately 2 times.
- Adjusted diluted earnings per share declined by 1.6% for the first half of the year.
- Cigarette industry shipment volumes remained pressured due to macroeconomic factors and the growth of illegal disposable e-vapor products.
- The company identified more than 350 illicit nicotine pouch SKUs, indicating a growing challenge in the illicit market.
- Altria Group Inc (MO) recorded a noncash pre-tax impairment of $354 million for the Skoal trademark due to evolving consumer preferences and the growth of oral nicotine pouches.
- The smokable products segment saw a decline in domestic cigarette volumes by 13% in the second quarter and 11.5% for the first half.
Good day everyone and welcome to the Altria Group 2024 second quarter and first half earnings conference call. Today's call is scheduled to last about one hour, including remarks by Altria's management and a question-and-answer session representative of the investment community and media on the call will be able to ask questions following the conclusion of the prepared remarks.
I would now like to turn the call over to Mac Livingston, Vice President of Investor Relations for Altria Client Services. Please go ahead, sir.
Thanks, Savannah. Good morning and thank you for joining us. This morning, Billy Gifford, Altria's CEO; and Sal Mancuso, our CFO, will discuss Altria's second quarter and first half business results. Earlier today, we issued a press release providing our results. The release, presentation, quarterly metrics and our latest corporate responsibility reports are all available at altria.com.
During our call today, unless otherwise stated, we're comparing results to the same period in
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