Altria Group has released its operational results for the third quarter and 9 months of 2022, and has revised its guidance for adjusted diluted earnings per share (EPS) for the full year of 2022.
Billy Gifford, CEO of Altria, stated in a press release that this is an exciting moment for the company as it moves towards its goal of going beyond smoking. Despite challenges in the tobacco industry in the first nine months of this year, Altria remained strong and rewarded its shareholders while investing in achieving its vision.
Altria's net profit dropped by 3.5 percent in the third quarter. The company's management remains optimistic, stating that their strategic actions have strengthened their product portfolio within the three major smokeless product categories. Altria has established an impressive selection of heated tobacco products and enhanced their competitiveness in the e-cigarette market, while further solidifying their position in the industry.
We are narrowing the guidance range for the full year of 2022, and the adjusted diluted earnings per share are expected to be within the range of $4.81 to $4.89. This represents a growth of 4.5% to 6% from the base of $4.61 in 2021. We believe that this range allows us to be flexible in responding to market conditions.
Net income for the third quarter decreased by 3.5% to 6.6 billion US dollars, due to a decline in net income for both the Michel wine business and the combustible products sector, partially offset by higher net income from the electronic cigarette sector. Revenue, after deducting sales taxes, decreased by 2.2%, to 5.4 billion US dollars.
The report shows a 100% increase in diluted earnings per share, reaching $0.12, mainly due to reduced losses reported by ABI investments (primarily due to a decrease in the company's impairment of ABI investments), favorable Cronos-related special projects, increased operating company income (OCI), and a decrease in outstanding shares, partially offset by adverse changes in the estimated fair value of the company's investment in Juul (including corresponding tax valuation allowances adjustments). Adjusted diluted earnings per share increased by 4.9% to $1.28, mainly due to increased adjusted other comprehensive income and a decrease in outstanding shares.
The company's net income for the first three quarters of the year decreased by 3.9%, to $19 billion, primarily due to the sale of its stake in Michelle Wine Estates and a decline in net income from its tobacco products sector. Revenue, excluding consumption tax, decreased by 2.6% to $15.6 billion.
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