Altria Group, Inc. (Altria) has announced its third quarter business results for 2022, narrowing its 2022 full-year adjusted diluted earnings per share (EPS) guidance, according to a company press release.

The company’s net revenues for the third quarter decreased 3.5 per cent to USD 6.6 billion, primarily driven by the sale of our former Ste. Michelle wine business in October 2021 and lower net revenues in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment. Revenues net of excise taxes decreased 2.2 per cent to USD 5.4billion.
The smokeable products segment reported domestic cigarette shipment volume decreased 9.2 per cent, primarily driven by the industry’s decline rate and retail share and other factors, partially offset by trade inventory movements. Marlboro retail share of the total cigarette category was 42.6 per cent, a decrease of 0.4 share points and 0.1 share point sequentially, primarily due to increased macroeconomic pressures on ATC disposable income. However, Marlboro share of the premium segment grew to 58.4 per cent, an increase of 0.7 share points versus the prior year and 0.4 share points sequentially.
Net revenues in the oral segment increased 7.0 per cent, primarily driven by higher pricing, partially offset by higher promotional investments in on!. Revenues net of excise taxes increased 7.7 per cent. Oral tobacco products segment reported domestic shipment volume increased 1.3 per cent, primarily driven by trade inventory movements, the industry’s growth rate and calendar differences, partially offset by retail share losses and other factors.
“We recently announced significant updates on our plans to compete in the heated tobacco category. We announced the execution of an agreement with Philip Morris International Inc. regarding the IQOS Tobacco Heating System® and, separately, we announced the formation of a strategic partnership with JT Group and our expanded wholly owned heated tobacco portfolio,” Altria said.
Billy Gifford, Altria’s Chief Executive Officer, commented: “We are optimistic that the actions we have taken to date have strengthened our portfolio in the three major smoke-free categories. We have built a compelling portfolio in heated tobacco, enhanced our ability to compete in e-vapor and continued to strengthen on!’s position in the oral tobacco category.”
“We are narrowing our full-year 2022 guidance and now expect to deliver adjusted diluted EPS in a range of USD 4.81 to 4.89, representing a growth rate of 4.5 to 6 per cent from a base of USD 4.61 in 2021. We believe this range allows us the flexibility to react to marketplace conditions.”