Altria has reported a strong first quarter for its core tobacco segments, although the company has withdrawn its earnings guidance due to COVID-19 uncertainties, it announced in its first-quarter results.

In Q1 2020 Altria saw a 15 per cent increase in revenues net of excise taxes compared to Q1 in 2019, this quarter making USD 5 billion. Adjusted diluted earnings per share (EPS) also rose by 18.5 per cent, to USD 1 million. Due to the uncertainties caused by the COVID-19 pandemic, the company has withdrawn its full-year 2020 adjusted diluted EPS guidance. This was originally predicted to be in the range of USD 4.39 – 4.51 million. The report stated that Altria is continuing to assess the situation and will re-establish guidance at the appropriate time.
In the smokeable products category, revenues net of excise taxes increased by 16 per cent, compared to Q1 in 2019, to USD 4.3 billion. Domestic cigarette shipment volume increased by 6.1 per cent, compared to the year previous, to 25 billion sticks. However, according to the report, this was attributable to trade inventory movements, calendar differences and consumer pantry loading due to COVID-19. Altria estimates that consumer pantry loading should be considered an adjusting factor, due to its high likelihood of near-term volume payback. When adjusted for the aforementioned factors, Altria’s preliminary estimates are that the smokeable products segment domestic cigarette shipment volume decreased by around 5 per cent.
In Q1 2020, Altria renamed its smokeless products segment as the oral tobacco products segment. Revenues net of excise taxes increased by 12 per cent compared to the year previous, to USD 570 million. Domestic shipment volume increased by 2.8 per cent, to 196.7 million products. However, the report also stated that COVID-19 related pantry loading has also affected this figure. When adjusted for wholesale trade inventory movements, Altria’s preliminary estimates of retail and consumer pantry loading due to COVID-19, calendar differences and other factors, oral tobacco products segment shipment volume decreased by an estimated 0.5 per cent.
“The first-quarter brought out the best in Altria’s employees as we navigated the dynamic tobacco environment and the unprecedented effects of the COVID-19 pandemic,” said Billy Gifford, Altria’s Chief Executive Officer. “We’ve approached these challenges together by focusing on the health and welfare of our employees, maintaining business continuity and supporting our communities.”