Stock Analysis on Net
Stock Analysis on Net

Altria Group Inc. (NYSE:MO)

This company has been moved to the archive! The financial data has not been updated since October 31, 2024.

Common-Size Income Statement

Altria Group Inc., common-size consolidated income statement

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net revenues 100.00 100.00 100.00 100.00 100.00
Cost of sales -25.40 -25.67 -27.37 -29.89 -28.22
Excise taxes on products -16.26 -17.56 -18.84 -20.31 -21.16
Gross profit 58.34% 56.77% 53.79% 49.80% 50.62%
Marketing, administration and research costs -11.18 -9.27 -9.35 -8.24 -8.86
Asset impairment and exit costs 0.00 0.00 0.00 0.02 -0.63
Operating income 47.16% 47.49% 44.44% 41.57% 41.12%
Interest expense -4.69 -4.49 -4.57 -4.68 -5.26
Interest income 0.65 0.28 0.10 0.05 0.17
Interest and other debt expense, net -4.04% -4.22% -4.47% -4.62% -5.10%
Loss on early extinguishment of debt 0.00 0.00 -2.49 0.00 0.00
Net periodic benefit income, excluding service cost 0.52 0.73 0.78 0.29 0.15
Income (losses) from investments in equity securities 0.99 -14.51 -22.98 -0.42 6.87
Impairment of JUUL equity securities 0.00 0.00 0.00 -9.94 -34.25
Loss on Cronos-related financial instruments 0.00 -0.06 -0.57 -0.54 -5.74
Earnings before income taxes 44.64% 29.44% 14.70% 26.34% 3.05%
(Provision) benefit for income taxes -11.43 -6.48 -5.19 -9.31 -8.22
Net earnings (losses) 33.21% 22.97% 9.51% 17.03% -5.17%
Net losses attributable to noncontrolling interests 0.00 0.00 0.00 0.05 0.02
Net earnings (losses) attributable to Altria 33.21% 22.97% 9.51% 17.08% -5.15%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The common-size income statement reveals a significant expansion in gross and operating profitability from 2019 to 2023, contrasted by extreme volatility in non-operating items that heavily influenced net earnings during the period.

Gross Profitability and Cost Management
Gross profit margins exhibited a consistent upward trend, rising from 50.62% in 2019 to 58.34% in 2023. This improvement was driven by a simultaneous reduction in the cost of sales, which decreased from 28.22% to 25.40% of net revenues, and a decrease in excise taxes on products, which fell from 21.16% to 16.26% over the same period.
Operating Performance
Operating income grew steadily from 41.12% in 2019 to a peak of 47.49% in 2022, ending at 47.16% in 2023. While marketing, administration, and research costs remained relatively stable between 8% and 9% for most of the period, a notable increase to 11.18% occurred in 2023, slightly offsetting the gains achieved in gross margin.
Non-Operating Volatility and Impairments
The company's bottom line was severely impacted by non-operating losses in the early part of the analysis. Specifically, impairment of JUUL equity securities caused massive reductions in earnings, totaling 34.25% of net revenues in 2019 and 9.94% in 2020. Further volatility was observed in income from investments in equity securities, which saw a significant decline of 22.98% in 2021 and 14.51% in 2022 before recovering to a slight gain of 0.99% in 2023.
Debt and Interest Obligations
Interest and other debt expenses, net, remained stable and showed a slight downward trend, moving from 5.10% of net revenues in 2019 to 4.04% in 2023. This suggests a consistent management of debt obligations relative to the revenue base.
Net Earnings Evolution
Net earnings attributable to the company shifted from a loss of 5.15% in 2019 to a profit of 33.21% in 2023. This dramatic recovery is primarily attributed to the cessation of large-scale asset impairments and the stabilization of equity investment losses, allowing the strong core operating income to flow through to the final net result.

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