Altria Group (NYSE: MO), owner of Philip Morris USA and other brands, reported some positive signs in its second-quarter earnings released on Tuesday. Revenue decreased 3.8%, but adjusted earnings increased year-over-year.
The decline was primarily due to smokable products, but the Ste. Michelle wine brand suffered due to lower direct-to-consumer sales as well as restaurant closings.
Altria withdrew its full $ 3 billion revolving credit in March and paid it in full in late June. While she now has that credit available, she ended the quarter with $ 4.8 billion in cash and has an estimated $ 3 billion after taxes and dividends.
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A productive neighborhood
The company is executing a 10-year plan to move toward non-combustible smoking products and made several advances during the quarter to obtain products approved by the Federal Drug Administration (FDA). IQOS and HeatSticks, Heated tobacco products that are considered smoke-free alternatives to traditional cigarettes were approved to be marketed as modified risk products, meaning the company can claim to have a lower risk of tobacco-related disease than other tobacco products. tobacco. Altria has forged major partnerships to increase the distribution of these products in various markets.
It also has several on! products under review at the FDA. in! The nicotine patches are made in collaboration with the Swiss company Helix Innovations. Helix expects a 43% increase in the number of stores selling its products.
The company presented a perspective of $ 4.21 to $ 4.38 adjusted for the full year, with projected growth between 0% and 4%.
Altria also announced that it would increase its dividend from $ 0.84 to $ 0.86 per share.
