Altria Presents at Consumer Analyst Group of New York Conference, Reaffirms 2025 Full-Year Earnings Guidance
Altria Group, a leading player in the tobacco and nicotine industry, is participating in the Consumer Analyst Group of New York (CAGNY) Conference in Orlando, Florida. Today, Chief Executive Officer Billy Gifford and Executive Vice President and Chief Financial Officer Sal Mancuso will outline the company’s ongoing progress toward its long-term Vision. They will also discuss how Altria’s traditional tobacco businesses continue to drive strategic initiatives and provide deeper insights into the company’s long-term growth aspirations.
Strategic Direction and Vision
Billy Gifford emphasized the company’s strong position within the U.S. nicotine market, highlighting its history of responsible business practices, deep understanding of consumer behavior, and its comprehensive product portfolio spanning all major smoke-free categories.
“We believe our actions over time have positioned Altria to win in U.S. nicotine over the long term,” said Gifford. “We have a demonstrated commitment to responsibility, an extensive understanding of U.S. nicotine consumers, and a compelling portfolio with products in each of today’s smoke-free categories. We also have significant cash flows and a flexible balance sheet that support our investments and cash returns to shareholders.”
Presentation and Webcast Details
The live presentation will be streamed on Altria’s in a listen-only mode, beginning at approximately 10:00 a.m. Eastern Time. A recorded replay of the webcast, as well as the presentation slides and prepared remarks, will be made available online following the event.
2025 Full-Year Earnings Guidance
Altria reaffirmed its previously announced full-year 2025 adjusted diluted earnings per share (EPS) guidance, forecasting a range between $5.22 and $5.37. This represents an annual growth rate of 2% to 5% from the $5.12 base EPS in 2024.
Key Considerations in the 2025 Guidance
- Operational Adjustments: The projection accounts for one fewer shipping day in 2025, which will impact first-quarter performance.
- Illicit E-Vapor Market Impact: The guidance assumes limited disruption in combustible and e-vapor product volumes resulting from enforcement actions against illicit e-vapor market activities.
- Optimize & Accelerate Initiative: The estimate incorporates anticipated cost savings reinvested from Altria’s previously announced Optimize & Accelerate initiative.
- Changes in Benefit Income: The guidance range factors in lower expected net periodic benefit income compared to previous years.
Market Dynamics and External Environment
While the 2025 earnings guidance reflects a broad range of potential business scenarios, Altria acknowledges the dynamic nature of the external environment. The company will continue to monitor key factors, including:
- Macroeconomic Conditions: The ongoing cumulative effects of inflation and broader economic shifts.
- Consumer Behavior: Trends in adult tobacco consumer (ATC) purchasing habits and the adoption rate of smoke-free products.
- Regulatory and Legislative Landscape: Evolving regulations, legal challenges, and enforcement actions that may impact product distribution and sales.
- Illicit Market Enforcement: Efforts to curb the illegal sale of nicotine and e-vapor products.
Strategic Investments Supporting Growth
To maintain momentum in achieving its long-term Vision, Altria plans to invest strategically in multiple areas:
- Market Activation: Increased marketing efforts to enhance awareness and availability of its smoke-free product portfolio.
- Product Innovation: Ongoing research, development, and regulatory preparation for next-generation smoke-free products.
- Sustainability and Compliance: Ensuring adherence to evolving health and safety standards while reinforcing responsible business practices.
Accounting Considerations and Exclusions
Altria’s 2025 full-year adjusted diluted EPS guidance excludes several non-operational income and expense items, including:
- Debt-Related Expenses: Losses from early extinguishment of debt.
- Restructuring Costs: Charges tied to business restructuring and efficiency improvements.
- Asset Impairment Charges: Costs associated with potential write-downs.
- Acquisition, Disposition, and Integration-Related Items: One-time costs linked to mergers, acquisitions, or divestitures.
- Litigation and Settlement Adjustments: Charges arising from tobacco-related lawsuits and regulatory settlements.
- NPM Adjustment Items: Non-participating manufacturer (NPM) adjustment disputes under the Master Settlement Agreement (MSA).
Given the unpredictable nature of these exclusions, Altria does not provide forward-looking GAAP EPS estimates or reconciliation metrics for adjusted diluted EPS guidance. Management believes that excluding these items provides a clearer picture of the company’s core operational performance.
