Altria Group Inc.

Strong Financial Performance: Altria reported a 3.4% growth in adjusted diluted earnings per share (EPS) for 2024, alongside over $10.2 billion returned to shareholders through dividends and share repurchases. This included a 4.1% increase in dividends, marking the 59th increase in 55 years, indicating a commitment to shareholder returns despite challenges in the tobacco industry.

Challenges with Smoke-Free Product Goals: The company reassessed its 2028 enterprise goals due to the rapid growth of the illicit disposable vapor market, which now accounts for over 60% of the e-vapor category. This dynamic threatens long-term objectives in smoke-free products and requires the FDA to take more action to enforce regulations against illicit products.

Market Dynamics and Consumer Pressure: Adult tobacco consumers are increasingly encountering cumulative pressure due to inflation, affecting disposable income and shifting preferences towards discount brands. Adjusted domestic cigarette volumes declined 10.2% for the full year 2024, underscoring a challenging consumer environment.