In 2018, Altria's revenues net of excise taxes for the fourth quarter were up 1.5 per cent, despite a 3 per cent drop in Marlboro shipments, the Philip Morris USA owner said in its fourth-quarter and full-year results.

At 4.79 billion (EUR 4.17 billion), Altria's revenues net of excise taxes were up 1.5 per cent for the quarter. For the year 2018, revenues net of excise taxes were reported as steady, up 0.7 per cent, at USD 19.63 billion (EUR 17.09 billion).

Shipments of the flagship Marlboro brand for the third quarter, at 21.98 billion, were down 3 per cent. Shipments of 'other premium' brands decreased by 9.6 per cent and 'discount' brand shipments were down 14.6 per cent. Total cigarette shipments for the quarter, at 25.31 billion, were down 4.4 per cent on the 26.49 billion sticks shipped in fourth quarter 2018. For the whole year, the 94.78 billion Marlboro sticks shipped represented a decline of 5.2 per cent on the 99.98 billion shipped in the same period in 2018. Total cigarette shipments, at 109.79 billion, were down 5.8 per cent in 2018.
In 2018, the total US cigarette industry volume contracted by an estimated 5.8 per cent, Altria said its volume declines in the smokeable products segment were driven by this industry contraction. PM USA successfully stabilised Marlboro in 2018 at a full-year share of 43.1 share points, unchanged compared to Marlboro’s share in the fourth quarter of 2017.

Revenues net of excise taxes in the smokeless products segment, at USD 541 million (EUR 472 million), were down 0.2 per cent on fourth-quarter 2018 results. At USD 2.13 billion (EUR 1.86 billion), revenues net of excise taxes for the whole year were up 5.3 per cent.
Smokeless shipments were down 1.9 per cent in the fourth quarter and down 1 per cent for the whole year. 133.5 million cans and packs of the company's Copenhagen brand were shipped in the quarter, down 1.5 per cent, and Copenhagen shipments for the 12-month period were equal, at 531.7 million units. Skoal unit shipments were down 3.9 per cent for the quarter and the 231.1 million cans of the smokeless product shipped in the 12-month period represented a 4.5 per cent decline on the 241.9 million shipped in the comparable period in 2017.

Altria said that the Copenhagen full-year retail share grew 0.3 share points to 34.4 per cent and Skoal retail share declined 0.1 share point to 16.2 per cent compared to their share in the fourth quarter of 2017.

Of the company's performance, Howard Willard, chairman and chief executive officer, commented, “Altria closed out 2018 with excellent full-year adjusted diluted EPS growth, and we continued to reward shareholders by returning USD 5.4 billion in cash through dividends. PM USA stabilised Marlboro and strengthened our combustible business. We also took proactive steps that we believe uniquely position us for long-term success,” said Howard Willard, Altria’s Chairman and Chief Executive Officer. “Altria enters 2019 with an evolved business platform that includes our strong core tobacco businesses and new strategic investments with tremendous potential for growth.”

Altria expects the 2019 full-year total domestic cigarette industry volume decline rate will be in a range of 3.5 to 5 per cent.