Altria Group, Inc. has announced its 2020 third-quarter and nine-months business results and narrowed its 2020 adjusted diluted earnings per share (EPS) guidance, according to a company press release.

The company's net revenue for the quarter increased by 3.9 per cent to USD 7.1 billion, primarily driven by higher net revenues in the smokeable products segment. Revenues net of excise taxes increased 4.9 per cent to USD 5.7 billion. The net revenues for the first nine months increased by 3.9 per cent to USD 19.8 billion, primarily due to higher net revenues in the smokeable products and oral tobacco products segments, partially offset by lower net revenues in the wine segment. Revenues net of excise taxes increased 5.3 per cent to USD 15.8 billion.
For the third quarter, reported diluted EPS increased 63.3 per cent to USD 0.51, primarily driven by 2019 impairment of JUUL equity securities, lower net losses on Cronos-related special items and higher reported OCI in the smokeable products segment. These factors were partially offset by 2020 impairment of JUUL equity securities, lower reported earnings from Altria’s investment in ABI (including ABI-related special items) and higher income taxes.
Adjusted diluted EPS was unchanged at USD 1.19, as lower adjusted earnings from Altria’s investments in ABI and Cronos and higher income taxes were offset by higher adjusted OCI in the smokeable products segment.
In the first nine months of 2020, Altria recorded net pre-tax charges of $50 million (all of which were recorded in the second quarter), directly related to costs for disruptions caused by, or efforts to mitigate the impact of, the COVID-19 pandemic. These pre-tax charges included premium pay, personal protective equipment and health screenings, partially offset by certain employment tax credits.
“Altria continued to demonstrate its resilience during the third quarter while navigating the challenges presented by the COVID-19 pandemic,” said Billy Gifford, Altria’s Chief Executive Officer. “In the third quarter, our tobacco businesses delivered strong financial performance once again and we continued to make progress against our 10-year Vision.
“Based on our year-to-date results and insight into an additional quarter of ABI earnings contributions, we’re narrowing our full-year 2020 adjusted diluted EPS guidance by raising the lower end of the range. We now expect to deliver adjusted diluted EPS in a range of USD 4.30 to USD 4.38, representing a growth rate of 2 per cent to 4 per cent from an adjusted diluted EPS base of USD 4.21 in 2019.”