Altria Group, Inc (NYSE:MO) has posted a dip in first-quarter revenues as it earned less from cigarette sales as consumers switch to smoke-free alternatives.
The maker of brands including Marlboro cigarettes reported a 1.2% decline in net revenues to $4.76 billion for the three months to March 31, 2023, falling short of the $4.9 billion expected by Wall Street. Adjusted earnings per share rose 5.4% to $1.18, in line with expectations.
Altria attributed a 3.3% decline in net revenues from smokeable products to lower shipment volume and higher promotional investments, partially offset by higher pricing. Net revenues from its oral tobacco products rose 2.4% as it raised prices.
“We are off to a strong start and believe our businesses are on track to deliver against full-year plans,” CEO Billy Gifford, said in a statement.
“Our tobacco businesses performed well in a challenging macroeconomic environment. We delivered strong adjusted diluted EPS growth of 5.4%, and we announced exciting progress toward our Vision.”
The company stuck to its guidance to deliver 2023 full-year adjusted diluted EPS of between $4.98 and $5.13, representing a growth rate of 3% to 6%.
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