Wiki source code of Altria Inc.

Last modified by Asif Farooqui on 2023/10/28 13:48
Show last authors
1 {{box cssClass="floatinginfobox" title="**Contents**"}}
2 {{toc/}}
3 {{/box}}
4
5 = Summary =
6
7 * Altria Group, Inc. is a leading tobacco, alcohol, and cannabis company in the United States.
8 * Its most well-known brands include Marlboro, Copenhagen, Skoal, on!, and Black & Mild.
9 * Its wholly owned subsidiaries include Philip Morris USA Inc., U.S. Smokeless Tobacco Company LLC, John Middleton Co., Helix Innovations LLC, and NJOY Holdings, Inc
10 * Altria's tobacco products include cigarettes, moist smokeless tobacco, oral nicotine pouches, and heat-not-burn products.
11
12
13
14 [[image:MO0.png||height="335" width="721"]]
15
16
17
18 Altria Group, Inc. (NYSE: MO, LSE: 0R31) is a leading tobacco, alcohol, and cannabis company in the United States. Its wholly owned subsidiaries include Philip Morris USA Inc., U.S. Smokeless Tobacco Company LLC, John Middleton Co., Helix Innovations LLC, and NJOY Holdings, Inc. Altria also has a minority stake in Anheuser-Busch InBev SA/NV, the world's largest brewer.
19
20 Altria's tobacco products include cigarettes, moist smokeless tobacco, oral nicotine pouches, and heat-not-burn products. Its most well-known brands include Marlboro, Copenhagen, Skoal, on!, and Black & Mild.
21
22
23 = Recent Developments =
24
25 **NJOY Brings Sweeping Litigation Against Illicit Disposable Vapor Manufacturers**{{footnote}}https://investor.altria.com/press-releases/news-details/2023/NJOY-Brings-Sweeping-Litigation-Against-Illicit-Disposable-Vapor-Manufacturers/default.aspx{{/footnote}}
26
27 10/19/2023; Altria Group, Inc. (Altria) announces its operating company NJOY, LLC (NJOY) has filed sweeping litigation against 34 foreign and domestic manufacturers, distributors and online retailers of illicit disposable e-vapor products that are unlawfully marketed and sold in the State of California and elsewhere. The suit alleges that these companies manufacture, distribute, market and sell products that violate California’s flavor ban law, are unlawful under federal law and subject to FDA action, and illegally compete against companies that comply with state and federal laws.
28
29
30 The suit seeks a nation-wide injunction against the import, marketing and sale of these illicit products and significant compensatory and punitive damages.
31
32
33 **Altria Completes Acquisition of NJOY Holdings, Inc.**{{footnote}}https://investor.altria.com/press-releases/news-details/2023/Altria-Completes-Acquisition-of-NJOY-Holdings-Inc.-Updates-2023-Full-Year-Earnings-Guidance/default.aspx{{/footnote}}
34
35 6/1/2023; Altria Group, Inc. announces that Altria has completed its acquisition of NJOY Holdings, Inc.
36
37
38 The company funded the Transaction cash payments of approximately $2.75 billion through a combination of a $2 billion term loan, commercial paper and available cash.
39
40
41 The company expect to receive final payment of $1.7 billion (plus interest) from Philip Morris International Inc. (PMI) by July 15, 2023 as a part of its total $2.7 billion transition agreement for the IQOS Tobacco Heating System®. The company will use these proceeds to reduce the outstanding term loan balance.
42
43
44 Beginning in the second quarter of 2023, financial results for NJOY will be reported within the "All Other" category.
45
46
47 The company expect the Transaction to be accretive to cash flow in 2025 and accretive to adjusted diluted EPS in 2026. The company also expect the return on invested capital for the Transaction to exceed its current weighted-average cost of capital by 2027.
48
49
50 The previously announced Transaction terms also include up to $500 million in additional cash payments that are contingent upon regulatory outcomes with respect to certain NJOY products.
51
52
53
54 [[image:MO1.jpg]]
55
56
57 = Financial Highlights =
58
59 **Third Quarter 2023 Results**{{footnote}}https://investor.altria.com/press-releases/news-details/2023/Altria-Reports-2023-Third-Quarter-and-Nine-Months-Results-Narrows-2023-Full-Year-Earnings-Guidance/default.aspx{{/footnote}}
60
61 Net revenues decreased 4.1% to $6.3 billion, primarily driven by lower net revenues in the smokeable products segment. Revenues net of excise taxes decreased 2.5% to $5.3 billion.
62
63
64 Reported diluted EPS increased 100%+ to $1.22, primarily driven by its impairment of its investment in ABI in 2022 and 2022 charges related to its former investment in JUUL Labs, Inc. (JUUL) equity securities, partially offset by unfavorable income tax items.
65
66
67 Adjusted diluted EPS was unchanged at $1.28, as lower adjusted OCI was offset by fewer shares outstanding.
68
69
70 **Full Year 2022 Results**
71
72 Net revenues, which include excise taxes billed to customers, decreased $917 million (3.5%), due primarily to the sale of its wine business in October 2021 and lower net revenues in the smokeable products segment.
73
74
75 Cost of sales decreased $677 million (9.5%), due primarily to lower shipment volume in its smokeable products segment and the sale of its wine business, partially offset by higher manufacturing costs and higher per unit settlement charges.
76
77
78 Excise taxes on products decreased $494 million (10.1%), due primarily to lower shipment volume in its smokeable products segment.
79
80
81 Marketing, administration and research costs decreased $105 million (4.3%), due primarily to the sale of its wine business (including lower disposition-related costs), lower spending associated with the IQOS System heated tobacco business, lower general corporate expenses and acquisition-related costs in 2021 in its oral tobacco products segment, partially offset by higher costs in its smokeable products segment.
82
83
84 Operating income increased $359 million (3.1%), due primarily to higher operating results in its smokeable products segment and lower general corporate expenses.
85
86
87 Interest and other debt expense, net decreased $104 million (9.0%), due primarily to lower interest costs as a result of debt maturities and refinancing activities and higher interest income due to higher rates and interest associated with the sale of the IQOS System commercialization rights.
88
89
90 Adjusted net earnings attributable to Altria of $8,742 million increased $223 million (2.6%), due primarily to higher OCI and lower interest and other debt expense, net. Adjusted diluted EPS attributable to Altria of $4.84 increased by 5.0%, due to higher adjusted net earnings attributable to Altria and fewer shares outstanding.
91
92
93
94
95 [[image:MO2.jpg]]
96
97
98
99 = Company Overview =
100
101 Altria has a leading portfolio of tobacco products for U.S. tobacco consumers age 21+. The company's wholly owned subsidiaries include leading manufacturers of both combustible and smoke-free products. In combustibles, the company own Philip Morris USA Inc. (PM USA), the most profitable U.S. cigarette manufacturer, and John Middleton Co. (Middleton), a leading U.S. cigar manufacturer. The company's smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), the leading global moist smokeless tobacco (MST) manufacturer, Helix Innovations LLC (Helix), a leading manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), currently the only e-vapor manufacturer to receive market authorizations from the U.S. Food and Drug Administration (FDA) for a pod-based e-vapor product.
102
103
104 == Companies ==
105
106 Altria operates through various companies.{{footnote}}https://www.altria.com/about-altria/our-companies?src=topnav{{/footnote}}
107
108
109 === Operating Companies ===
110
111 **Philip Morris USA**
112
113 Philip Morris USA, the nation's leading cigarette manufacturer, is more than 175 years old. Philip Morris USA's cigarette retail share was 47.9 percent.
114
115 **Philip Morris Brands**
116
117 * Marlboro
118 * Basic
119 * Benson & Hedges
120 * Cambridge
121 * Chesterfield
122 * Commander
123 * Dave's
124 * English Ovals
125 * L&M
126 * Lark
127 * Merit
128 * Parliament
129 * Players
130 * Saratoga
131 * Virginia Slims
132
133 **U.S. Smokeless Tobacco Company**
134
135 It’s the most profitable smoke-free company in the U.S. with approximately one of every two moist smokeless tobacco consumers buying a USSTC. brand. In 2009, USSTC joined Altria Group.
136
137 **Brands**
138
139 * Copenhagen
140 * Cope
141 * Copenhagen Pouches
142 * Skoal
143 * Skoal Bandits
144 * Skoal Pouches
145 * Red Seal
146 * Husky
147 * Weyman's Best
148
149 **John Middleton's**
150
151 John Middleton's roots in tobacco date back to 1856 and today is a leading manufacturer and marketer of pipe tobacco and cigars. In December 2007, Middleton became a wholly-owned subsidiary of Altria Group.
152
153 **Brands**
154
155 * Black & Mild
156 * Middleton's Cherry Blend
157 * Gold & Mild
158 * Prince Albert
159 * Apple
160 * Black & Mild
161 * Carter Hall
162 * Middleton's Cherry Blend
163 * Gold & Mild
164 * Kentucky Club
165 * Prince Albert
166 * Royal Comfort
167 * Sugar Barrel
168 * Walnut
169
170 **Helix Innovations**
171
172 In 2019, Altria acquire 80% ownership of certain companies of Burger SÖhne HoldingAG, based in Switzerland, that commercialize on!® nicotine pouches globally. In December 2020 and April 2021, Altria subsidiaries closed the transactions to acquire the remaining 20% of the global on! business for a total of approximately $250 million.
173
174
175 **NJOY**
176
177 Altria acquired NJOY Holdings in 2023.  NJOY ACE, currently the only pod-based e-vapor product with market authorization from the FDA.
178
179
180
181 === Joint Venture ===
182
183 **Horizon Innovations**
184
185 Horizon Innovations is a majority-owned joint venture with JT Group, to market and commercialize JT’s heated tobacco stick products in the U.S.
186
187
188 === Service Companies ===
189
190 **Altria Client Services**
191
192 Altria Client Services provides Altria Group and its companies services in a financially disciplined way.
193
194 These areas include:
195
196 * Advanced Analytics
197 * Compliance
198 * Consumer & Market Insights
199 * Corporate Citizenship
200 * Digital Marketing Services
201 * Engineering
202 * Finance
203 * Investor Relations
204 * Communications
205 * Government Affairs
206 * Human Resources
207 * Information Technology
208 * Legal
209 * Packaging Design & Innovation
210 * Procurement
211 * Product Development
212 * Regulatory Affairs
213 * Safety, Health and Environmental
214
215 **Altria Group Distribution Company**
216
217 Altria Group Distribution Company provides sales, distribution and consumer engagement services to Altria's tobacco companies.
218
219
220 === Investments ===
221
222 **Anheuser-Busch InBev**
223
224 AB InBev is now the largest global brewer – provides it with substantial income, cash flow and a strong asset on its balance sheet.
225
226
227 **Cronos Group Inc.**
228
229 In 2019, Altria acquired a 45 percent equity stake in Cronos Group Inc., a leading global cannabinoid company, headquartered in Toronto, Canada. The cannabis is poised for rapid growth over the next decade.
230
231
232
233 [[image:MO3.png]]
234
235
236 == Company History ==
237
238 The company founded when George Weyman opened his tobacconist shop in Pittsburgh in 1822{{footnote}}https://www.altria.com/en/about-altria/our-heritage{{/footnote}}
239
240
241 |**Year**|**Milestone**
242 |1982|Philip Morris Credit Corporation (now Philip Morris Capital Corporation) is incorporated.
243 |1985|Philip Morris Cos. is incorporated, and becomes the publicly-held holding company and parent of Philip Morris Inc. Philip Morris Cos. acquires General Foods Corp.
244 |1988|Philip Morris Cos. acquires Kraft Foods Inc.
245 |1989|Kraft and General Foods combine to form Kraft General Foods.
246 |2002|Miller Brewing Company merges with South African Breweries to form SABMiller plc., the world's second-largest beer company, with Philip Morris Cos. retaining a continuing interest in the enlarged group.
247 |2003|Philip Morris Cos. is renamed The Altria Group Inc., and remains the parent company of Kraft Foods Inc., Philip Morris International, Philip Morris USA and Philip Morris Capital Corporation.
248 |2007|Altria spins off Kraft Foods, distributing all shares owned by Altria to Altria's shareholders. Altria acquires John Middleton.
249 |2008|Altria relocates its headquarters to Richmond, Va., and completes the spin-off of Philip Morris International.
250 |2009|Altria Group acquires UST Inc., a holding company whose primary businesses manufacture and market moist smokeless tobacco products through U.S. Smokeless Tobacco Company, and premium wines through Ste. Michelle Wine Estates.
251 |2009|The Family Smoking Prevention and Tobacco Control Act is signed into law, giving FDA the authority to regulate the manufacturing, distribution and marketing of tobacco products.
252 |2016|Anheuser-Busch InBev SA/NV (AB InBev) merges with SAB Miller plc, becoming the world's largest drink and brewing holdings company.
253 |2017|Altria Group acquires Sherman Group Holdings, LLC and its subsidiaries (Nat Sherman).
254 |2019|Altria Group makes a significant investment in The Cronos Group, a global cannabinoid company.
255 |2019|With an agreement to acquire 80% ownership of certain Burger Söhne Holding AG to commercialize and distribute on!, an oral tobacco-derived nicotine pouch product.
256 |2021|In December 2020 and April 2021, Altria subsidiaries closed transactions to acquire the remaining 20% of the global on! business for a total of approximately $250 million.
257 |2022|On April 5, Altria announces progress towards climate goals with a signed virtual power purchase agreement for energy produced by a wind farm in Texas, to address the emissions from 100 percent of Altria’s annual purchased electricity demand across all U.S. facilities.
258
259 = References =
260
261 {{putFootnotes/}}
This site is funded and maintained by Fintel.io