Altria Group's Q4 Earnings Impacted by Declining Cigarette Sales

Business by 2FIRSTS.ai
Feb.01.2024
Altria Group's Q4 Earnings Impacted by Declining Cigarette Sales
Altria Group's Q4 net income is predicted to reach $5.1 billion, with a 2% decrease from last year.

According to a report by Barron's on January 31, tobacco industry giant Altria Group is set to release its fourth-quarter financial earnings. Analysts predict that Altria Group's net income will reach $5.1 billion, which is similar to the figure for 2022. Net income for the year is expected to decline by 2% compared to the same period last year, amounting to $2.1 million, with earnings per share at $1.18.

 

Despite more optimistic expectations for fourth-quarter performance compared to the third quarter, cigarette prices have increased by 8.7% and sales volume has dropped by 11.6% compared to the same period last year. The tobacco department's net income has declined by 5.3% compared to last year, highlighting the sales pressure. Many consumers are switching to alternative products such as heated tobacco, e-cigarettes, and oral nicotine pouches.

 

The weak sales performance highlights the pressure faced by tobacco companies, as British American Tobacco and Altria Group announced a $32 billion cut in cigarette brands in December last year, triggering a major industry sell-off. Altria Group's sales volume for oral tobacco products declined by 3.3% compared to the previous year, but the higher prices offset this loss, resulting in a 2.3% increase in net income for the sector.

 

The Chief Financial Officer of the company, Saul Mancozo, has stated that inflation, declining consumer income, and the emergence of illicit e-cigarettes have had an impact on the customer base. Despite a low stock price, Altria Group has managed to boost shareholder returns through share repurchases and dividend payments. In the first nine months of 2023, the company repurchased 16.3 million shares, returning $732 million in cash to shareholders, and is expected to complete an additional $268 million worth of stock repurchases by the end of 2023.

 

Further Exploration and Development

 

Altria Group is a company known for its reliable dividend returns, having experienced 54 consecutive years of dividend growth. The management has stated their plans for a single-digit annual growth, and has made an optimistic projection for the full-year earnings per share in 2023, expecting it to grow between $4.91 and $4.98, representing a 1.5% to 3% increase.

 

Despite the limited performance of Altria Group's stock due to rising commodity prices, Wall Street analysts remain optimistic towards the stock. The average target price is $47, representing an almost 18% increase from the current $40. Goldman Sachs analysts predict that Altria Group will offset declining sales volumes with strong price increases in the fourth quarter, but they also point out that the stock may continue to trade within a range until the trend of declining sales stabilizes.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Product | Republic Technologies Launches ZIG Nicotine Pouches, Expanding Beyond Traditional Tobacco Accessories
Product | Republic Technologies Launches ZIG Nicotine Pouches, Expanding Beyond Traditional Tobacco Accessories
Republic Technologies UK has entered the nicotine pouch market with ZIG Nicotine Pouches, marking the company’s expansion beyond traditional tobacco-related accessories into smoke-free nicotine products. The product is expected to enter UK retail channels from August 2026, including convenience stores, supermarkets and tobacco retailers. The launch includes six flavors and three nicotine strengths: 8mg, 12mg and 17mg.
Market
Jul.21 by 2Firsts Perspectives
Russian Strikes Destroy JTI and Imperial Brands Ukraine Warehouses, With Losses Reaching Tens of Millions of Hryvnias
Russian Strikes Destroy JTI and Imperial Brands Ukraine Warehouses, With Losses Reaching Tens of Millions of Hryvnias
According to Ukrainska Pravda, Russian strikes on the Kyiv region during the night of Aug. 4-5, 2026, damaged warehouses storing products of Japan Tobacco International (JTI) and Imperial Brands Ukraine. JTI said a finished goods warehouse in Kyiv Oblast was destroyed, with no employees injured, and that it did not expect disruptions to retail supplies. Imperial Brands Ukraine said products stored at warehouses of distributors and retail partners were affected and estimated losses from the strikes at “tens of millions of Ukrainian hryvnias” (roughly hundreds of thousands of U.S. dollars).
JTI
Aug.07
Altria Smokeable Profit Rises 2.4% as Marlboro Share Falls and U.S. Discounts Gain
Altria Smokeable Profit Rises 2.4% as Marlboro Share Falls and U.S. Discounts Gain
Altria’s second-quarter results show a U.S. nicotine market splitting across price, product and regulation. Smokeable profit rose 2.4% as Marlboro pricing offset lower volumes, while discount brand Basic gained share among value-conscious smokers. In oral nicotine, on! PLUS expanded distribution but faced intensifying competition from ZYN and Velo. NJOY remained off the market as patent and regulatory hurdles delayed its return. The broader lesson: U.S. growth increasingly depends on price-tier strategy, retail execution, authorisation and enforcement readiness across the industry.
Special Report
Jul.31
Product | OLIVEBAR Launches RAZ PRO 85K, Combining Up to 85,000 Puffs With a Transparent Pod Design
Product | OLIVEBAR Launches RAZ PRO 85K, Combining Up to 85,000 Puffs With a Transparent Pod Design
OLIVEBAR has introduced the RAZ PRO 85K disposable vape, featuring up to 85,000 puffs, a transparent e-liquid pod, and a Mega HD display. As competition in the ultra-high-puff disposable segment continues to intensify, the new device reflects an industry shift from simply increasing puff counts toward enhancing visual interaction and user experience.
Jul.03
Ohio Supreme Court Weighs Whether State Consumer Law Can Restrict Flavored Vape Sales
Ohio Supreme Court Weighs Whether State Consumer Law Can Restrict Flavored Vape Sales
The Ohio Supreme Court is hearing a case involving flavored vape sales and whether state authorities can use consumer protection laws to take action against retailers selling unauthorized vape products. Ohio officials argue that selling unauthorized flavored vapes may constitute consumer deception, while retailers argue that tobacco product regulation falls under federal Food and Drug Administration (FDA) authority and that states cannot impose additional restrictions through consumer laws. The case could affect the scope of state-level vape regulation across the United States.
Aug.06
DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
According to the U.S. Department of Justice (DOJ), Fox News and other reports, the DOJ’s Trade Fraud Task Force (TFTF) has been linked to more than $1 billion in recoveries, penalties, forfeitures and publicly charged losses in less than one year. The task force focuses on trade fraud issues including country-of-origin fraud, illegal transshipment, false declarations and tariff evasion. While vape products are not the main source of the $1 billion figure, the industry’s reliance on global manufacturing and cross-border supply chains places it within broader U.S. trade enforcement scrutiny. The development suggests that U.S. oversight of cross-border vape products may increasingly extend beyond product authorization into import compliance, supply-chain transparency and corporate accountability.
Jul.23