Q1 2025 Altria Group Inc Earnings Call Transcript
Key Points
- Altria Group Inc (MO) reported solid adjusted operating income growth in its smokeable products segment, driven by the strength of the Marlboro brand.
- The oral tobacco products segment showed strong performance, with Helix's ON! brand growing its market share and shipment volume significantly.
- Altria Group Inc (MO) continues to return strong cash to shareholders through dividends and share repurchases.
- The company is actively engaging with regulatory bodies and legislators to address the issue of illicit e-vapor products, which currently dominate the market.
- Altria Group Inc (MO) maintains a strong balance sheet with a total debt-to-EBITDA ratio of 2.1 times, aligning with its target.
- Domestic cigarette volumes declined by 13.7% in the first quarter, with industry volumes also experiencing a decline.
- The e-vapor category faces significant challenges due to the prevalence of illicit products, which represent over 60% of the market.
- NJOY, a part of Altria Group Inc (MO), has been impacted by ITC orders, leading to the discontinuation of NJOY ACE shipments.
- The oral tobacco products segment experienced a decline in retail share due to lower moist smokeless tobacco volumes.
- Economic pressures, including inflation, continue to impact consumer purchasing behavior, leading to increased demand for discount products.
Good day, and welcome to the Altria Group 2025 first-quarter earnings conference call. Today's call is scheduled to last about 1 hour, including remarks by Altria's management and a question and answer session. (Operator instructions)
I would now like to turn the call over to Mac Livingston, Vice President of Investor Relations for Altria Client Services. Please go ahead, sir.
Thanks, David. Good morning, and thank you for joining us. This morning, Billy Gifford, Altria's CEO; and Sal Mancuso, our CFO, will discuss Altria's first quarter business results. Earlier today, we issued a press release providing our results. The release, presentation, quarterly metrics and our latest corporate responsibility reports are all available at altria.com.
During our call today, unless otherwise stated, we're comparing results to the same period in 2024. Our remarks contain forward-looking statements, including projections of future results. Please review the forward-looking and
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