On this page of StockholderLetter.com we present the 4/3/2025 shareholder letter from ALTRIA GROUP, INC. — ticker symbol MO. Reading current and past MO letters to shareholders can bring important insights into the investment thesis.
2024 Altria Group, Inc. Annual Report From tobacco company To tobacco harm reduction company.
D E A R F E L LOW S H A R E H O L D E R S 2024 was another pivotal year for Altria. We made meaningful advancements towards our Vision, delivered strong nancial performance and provided substantial returns to you, our valued shareholders. Our core tobacco businesses successfully executed their strategies in a challenging environment, and our smoke-free products continued their momentum in the marketplace. Q Progress Toward Our Vision. The potential for tobacco harm reduction in the U.S. is signi cant. In 2024, our companies continued their efforts to position our smoke-free products for sustained success in the sizeable U.S. nicotine space. NJOY made signi cant progress in 2024, growing volume and share in a competitive pod segment. To improve availability, NJOY expanded distribution of NJOY ACE to over 100,000 stores and ampli ed visibility by securing premium positioning in more than 80% of contracted stores through NJOY s rst retail trade program. NJOY executed a variety of trial-generating activities and introduced a new brand equity campaign that resonated strongly with adult tobacco consumers. Despite challenges from patent litigation before the U.S. International Trade Commission, as discussed in the enclosed Annual Report on Form 10-K, and the growing illicit e-vapor marketplace, NJOY has demonstrated its ability to successfully build a brand and responsibly grow in the e-vapor category. NJOY is building a pipeline of products to meet evolving adult tobacco consumer preferences, and we believe NJOY s proven capabilities will directly translate to our future e-vapor efforts. Helix continued to participate in the oral tobacco category growth, increasing on! reported shipment volume by more than 40% to 160 million cans in 2024. on! retail share momentum continued as the brand reached 8.3% of the total U.S. oral tobacco category for full-year 2024. Notably, Helix achieved pro tability for the rst time in the fourth quarter, ahead of its 2025 goal. Outside of the U.S., we are encouraged by the steady momentum that on! PLUS is building at retail and on e-commerce within Sweden and the United Kingdom. In heated tobacco, our teams continued to advance our product pipeline. During 2024, we made progress toward a Premarket Tobacco Product Application and accelerated work on a Modi ed Risk Tobacco Product Application submission to the U.S. Food and Drug Administration (FDA) for Ploom through Horizon, our joint venture with JT Group. We expect to make a combined submission in the middle of this year. We also commenced a small-scale international test of SWIC, our internally developed heated tobacco capsule product, to gain adult tobacco consumer insights and further inform our heated tobacco strategy. Kathryn B. McQuade, Chair of the Board March 21, 2025 Achieving our Vision and the full promise of tobacco harm reduction requires the entire industry operating within sciencebased regulation, a variety of satisfying, FDA-authorized product choices for adult tobacco consumers and underage tobacco use continuing to decline or remaining low. Last year, we advocated for a responsible and well-regulated marketplace by calling on the FDA to prioritize innovation, increase the number and pace of product authorizations to expand the legal market of smoke-free products and take enforcement action against illicit e-vapor manufacturers, wholesalers and retailers. We encouraged regulators to use all available tools to enforce the regulatory framework and hold rule breakers accountable. Once regulation is functioning as intended, we believe Altria has the experience and capabilities to make signi cant progress toward our Vision. Q Resilient Traditional Tobacco Businesses. Our traditional businesses delivered solid nancial performance in 2024. The smokeable products segment grew its adjusted operating companies income (OCI) to $10.9* billion and expanded adjusted OCI margins nearly 2 percentage points to 61.6%*. Marlboro performance was resilient, and its share of the premium segment expanded to 59.3% for full-year 2024. Our oral tobacco products segment nancials remained strong, driven by Copenhagen, the leader in MST. In 2024, the oral tobacco products segment reported higher adjusted OCI and OCI margins. Adjusted OCI grew 5.2%* and adjusted OCI margins expanded to an impressive 67.8%*. Q Strong Financial Performance and Signi cant Cash Returns to Shareholders. We grew full-year adjusted diluted earnings per share by 3.4%,* and we continued our long history of rewarding shareholders by returning over $10.2 billion through dividends and share repurchases combined. Our Board of Directors raised the dividend for the 59th time in 55 years, and we completed our $3.4 billion share repurchase program funded, in part, by the partial sale of our investment in Anheuser-Busch InBev SA/NV, representing our largest single-year share repurchase in over two decades. Q Looking Forward. We continue to believe Altria is well positioned to responsibly lead the transition of adult smokers to a smoke-free future. The tobacco harm reduction opportunity remains in front of us, and we believe we have the right strategies to make it a reality. Those strategies, together with the strength of our traditional tobacco businesses and talented employees, give me con dence that we can achieve our Vision. Thank you, as always, for your ongoing support of Altria. William F. Gifford, Jr., Chief Executive Officer For important factors that may cause actual results to differ materially from those contained in the forward-looking statements included herein, see Item 1A. Risk Factors in Part I of the enclosed Annual Report on Form 10-K. * For explanations and reconciliations of adjusted measures to corresponding GAAP financial measures used herein, see Item 7. Management s Discussion and Analysis of Financial Condition and Results of Operations in Part II of the enclosed Annual Report on Form 10-K.
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MO 4/3/2025 Shareholder/Stockholder Letter Transcript:

2024
Altria Group, Inc.
Annual Report
From tobacco company
To tobacco harm reduction company.

D E A R F E L LOW S H A R E H O L D E R S
2024 was another pivotal year for Altria. We made meaningful
advancements towards our Vision, delivered strong    nancial
performance and provided substantial returns to you, our valued
shareholders. Our core tobacco businesses successfully executed
their strategies in a challenging environment, and our smoke-free
products continued their momentum in the marketplace.
Q   Progress Toward Our Vision. The potential for tobacco
harm reduction in the U.S. is signi   cant. In 2024, our companies
continued their efforts to position our smoke-free products for
sustained success in the sizeable U.S. nicotine space.
NJOY made signi   cant progress in 2024, growing volume and
share in a competitive pod segment. To improve availability,
NJOY expanded distribution of NJOY ACE to over 100,000 stores
and ampli   ed visibility by securing premium positioning in more
than 80% of contracted stores through NJOY   s    rst retail trade
program. NJOY executed a variety of trial-generating activities
and introduced a new brand equity campaign that resonated
strongly with adult tobacco consumers. Despite challenges from
patent litigation before the U.S. International Trade Commission,
as discussed in the enclosed Annual Report on Form 10-K, and
the growing illicit e-vapor marketplace, NJOY has demonstrated
its ability to successfully build a brand and responsibly grow in the
e-vapor category. NJOY is building a pipeline of products to meet
evolving adult tobacco consumer preferences, and we believe
NJOY   s proven capabilities will directly translate to our future
e-vapor efforts.
Helix continued to participate in the oral tobacco category
growth, increasing on! reported shipment volume by more than
40% to 160 million cans in 2024. on! retail share momentum
continued as the brand reached 8.3% of the total U.S. oral tobacco
category for full-year 2024. Notably, Helix achieved pro   tability for
the    rst time in the fourth quarter, ahead of its 2025 goal. Outside
of the U.S., we are encouraged by the steady momentum that
on! PLUS is building at retail and on e-commerce within Sweden
and the United Kingdom.
In heated tobacco, our teams continued to advance our product
pipeline. During 2024, we made progress toward a Premarket
Tobacco Product Application and accelerated work on a Modi   ed
Risk Tobacco Product Application submission to the U.S. Food
and Drug Administration (FDA) for Ploom through Horizon, our
joint venture with JT Group. We expect to make a combined
submission in the middle of this year. We also commenced a
small-scale international test of SWIC, our internally developed
heated tobacco capsule product, to gain adult tobacco consumer
insights and further inform our heated tobacco strategy.
Kathryn B. McQuade, Chair of the Board
March 21, 2025
Achieving our Vision and the full promise of tobacco harm
reduction requires the entire industry operating within sciencebased regulation, a variety of satisfying, FDA-authorized product
choices for adult tobacco consumers and underage tobacco use
continuing to decline or remaining low. Last year, we advocated
for a responsible and well-regulated marketplace by calling
on the FDA to prioritize innovation, increase the number and
pace of product authorizations to expand the legal market of
smoke-free products and take enforcement action against illicit
e-vapor manufacturers, wholesalers and retailers. We encouraged
regulators to use all available tools to enforce the regulatory
framework and hold rule breakers accountable. Once regulation is
functioning as intended, we believe Altria has the experience and
capabilities to make signi   cant progress toward our Vision.
Q   Resilient Traditional Tobacco Businesses. Our traditional
businesses delivered solid    nancial performance in 2024. The
smokeable products segment grew its adjusted operating
companies income (OCI) to $10.9* billion and expanded adjusted
OCI margins nearly 2 percentage points to 61.6%*. Marlboro
performance was resilient, and its share of the premium segment
expanded to 59.3% for full-year 2024.
Our oral tobacco products segment    nancials remained strong,
driven by Copenhagen, the leader in MST. In 2024, the oral
tobacco products segment reported higher adjusted OCI and
OCI margins. Adjusted OCI grew 5.2%* and adjusted OCI margins
expanded to an impressive 67.8%*.
Q   Strong Financial Performance and Signi   cant Cash
Returns to Shareholders. We grew full-year adjusted diluted
earnings per share by 3.4%,* and we continued our long history
of rewarding shareholders by returning over $10.2 billion through
dividends and share repurchases combined. Our Board of
Directors raised the dividend for the 59th time in 55 years, and we
completed our $3.4 billion share repurchase program funded, in
part, by the partial sale of our investment in Anheuser-Busch InBev
SA/NV, representing our largest single-year share repurchase in
over two decades.
Q   Looking Forward. We continue to believe Altria is well
positioned to responsibly lead the transition of adult smokers to
a smoke-free future. The tobacco harm reduction opportunity
remains in front of us, and we believe we have the right strategies
to make it a reality. Those strategies, together with the strength of
our traditional tobacco businesses and talented employees, give
me con   dence that we can achieve our Vision.
Thank you, as always, for your ongoing support of Altria.
William F. Gifford, Jr., Chief Executive Officer
For important factors that may cause actual results to differ materially from those contained in the forward-looking statements included herein, see Item 1A.
Risk Factors in Part I of the enclosed Annual Report on Form 10-K.
* For explanations and reconciliations of adjusted measures to corresponding GAAP financial measures used herein, see Item 7. Management   s Discussion
and Analysis of Financial Condition and Results of Operations in Part II of the enclosed Annual Report on Form 10-K.


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