Analysis of Reportable Segments
Altria Group Inc. operates in 3 segments: Smokeable products; Oral tobacco products; and Wine.
Segment Profit Margin
Altria Group Inc., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Smokeable products | 49.04% | 47.55% | 45.46% | 43.25% | 40.96% |
| Oral tobacco products | 64.57% | 63.26% | 63.61% | 67.82% | 66.75% |
| Wine | — | — | 4.25% | -58.63% | -0.44% |
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).
An evaluation of the segment profit margins reveals divergent performance trajectories across the three reportable business lines between 2019 and 2023. While the smokeable products segment demonstrates consistent margin expansion, the oral tobacco segment maintains a high but fluctuating margin, and the wine segment exhibits extreme volatility followed by an absence of reporting.
- Smokeable Products
- A sustained and linear upward trend in profit margins is observed for smokeable products. Margins increased from 40.96% in 2019 to 49.04% by the end of 2023. This represents a steady year-over-year growth pattern, indicating successful cost management or pricing power within this segment over the five-year period.
- Oral Tobacco Products
- The oral tobacco segment consistently delivers the highest profit margins of the reported groups, although the trend is non-linear. After peaking at 67.82% in 2020, margins experienced a contraction to 63.26% by 2022 before recovering slightly to 64.57% in 2023. Despite these fluctuations, the segment maintains a strong and relatively stable margin profile.
- Wine
- The wine segment is characterized by significant instability. A marginal loss of -0.44% in 2019 escalated to a substantial deficit of -58.63% in 2020, before returning to a positive margin of 4.25% in 2021. No further margin data is recorded for this segment for the 2022 and 2023 fiscal years.
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Segment Profit Margin: Smokeable products
Altria Group Inc.; Smokeable products; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating companies income (loss) (OCI) | 10,670) | 10,688) | 10,394) | 9,985) | 9,009) |
| Net revenues | 21,756) | 22,476) | 22,866) | 23,089) | 21,996) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 49.04% | 47.55% | 45.46% | 43.25% | 40.96% |
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).
1 2023 Calculation
Segment profit margin = 100 × Operating companies income (loss) (OCI) ÷ Net revenues
= 100 × 10,670 ÷ 21,756 = 49.04%
A divergence is observed between net revenues and operating profitability within the smokeable products segment. While net revenues have experienced a general decline since 2020, operating income and segment profit margins have demonstrated a consistent upward trajectory over the five-year period ending December 31, 2023.
- Net Revenue Trends
- Net revenues peaked in 2020 at US$ 23,089 million and subsequently entered a period of steady contraction. By December 31, 2023, revenues declined to US$ 21,756 million, indicating a sustained reduction in top-line performance following the 2020 high.
- Operating Companies Income (OCI) Performance
- Despite the decline in revenue, OCI grew steadily from US$ 9,009 million in 2019 to a peak of US$ 10,688 million in 2022. A slight plateau occurred in 2023, with income closing at US$ 10,670 million, suggesting a stabilization of operating profits.
- Segment Profit Margin Expansion
- The segment profit margin exhibited a continuous and linear increase, rising from 40.96% in 2019 to 49.04% in 2023. This expansion suggests a significant improvement in operational efficiency and an ability to maintain pricing power, as profitability increased even as the revenue base contracted.
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Segment Profit Margin: Oral tobacco products
Altria Group Inc.; Oral tobacco products; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating companies income (loss) (OCI) | 1,722) | 1,632) | 1,659) | 1,718) | 1,580) |
| Net revenues | 2,667) | 2,580) | 2,608) | 2,533) | 2,367) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 64.57% | 63.26% | 63.61% | 67.82% | 66.75% |
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).
1 2023 Calculation
Segment profit margin = 100 × Operating companies income (loss) (OCI) ÷ Net revenues
= 100 × 1,722 ÷ 2,667 = 64.57%
The oral tobacco products segment demonstrates a general trajectory of revenue growth accompanied by volatility in operating income and profit margins between 2019 and 2023. While the segment expanded its top-line performance over the five-year period, the conversion of that revenue into operating income fluctuated, resulting in a compressed margin profile in the middle of the period followed by a recent recovery.
- Revenue Performance
- Net revenues exhibited a consistent upward trend for the majority of the period, rising from 2,367 million US dollars in 2019 to 2,667 million US dollars in 2023. A marginal contraction occurred in 2022, where revenues decreased to 2,580 million US dollars from 2,608 million US dollars in 2021, before returning to growth in the final year.
- Operating Companies Income (OCI)
- Operating income showed a non-linear progression, peaking in 2020 at 1,718 million US dollars. This was followed by a two-year decline, reaching a low of 1,632 million US dollars in 2022. However, a significant recovery was observed in 2023, with income rising to 1,722 million US dollars, surpassing the previous 2020 peak.
- Segment Profit Margin Trends
- Profitability margins peaked in 2020 at 67.82%, reflecting high operational efficiency during that period. A notable contraction occurred between 2020 and 2021, where the margin dropped by 4.21 percentage points to 63.61%, despite the simultaneous increase in net revenues. This indicates that operating expenses grew at a faster rate than revenues during that interval. The margin reached its lowest point in 2022 at 63.26% before rebounding to 64.57% in 2023.
- Correlation Analysis
- The divergence between revenue growth and margin performance in 2021 suggests a period of increased cost pressure or pricing adjustments that impacted the bottom line. The alignment of both increasing revenues and increasing profit margins in 2023 indicates a successful stabilization of operating costs relative to sales growth.
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Segment Profit Margin: Wine
Altria Group Inc.; Wine; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating companies income (loss) (OCI) | —) | —) | 21) | (360) | (3) |
| Net revenues | —) | —) | 494) | 614) | 689) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | — | — | 4.25% | -58.63% | -0.44% |
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).
1 2023 Calculation
Segment profit margin = 100 × Operating companies income (loss) (OCI) ÷ Net revenues
= 100 × 0 ÷ 0 = —
The Wine segment demonstrated significant financial volatility and a contraction in scale from 2019 through 2021. While the segment faced a severe profitability crisis in 2020, a recovery to positive margins was achieved by the end of 2021, despite a continuous decline in net revenues.
- Revenue Performance
- A consistent downward trend in net revenues is observed, decreasing from 689 million USD in 2019 to 614 million USD in 2020, and further declining to 494 million USD in 2021. This indicates a steady contraction of the segment's top-line performance over the three-year period.
- Operational Income and Profit Margin Volatility
- The segment's profitability experienced extreme fluctuations. In 2019, the segment operated at a near-breakeven point with a profit margin of -0.44% and an operating loss of 3 million USD. A substantial deterioration occurred in 2020, where operating income fell to -360 million USD, resulting in a steep profit margin collapse to -58.63%.
- Recovery Analysis
- A notable turnaround is evident in 2021. Despite the continued decline in net revenues to 494 million USD, the segment achieved an operating income of 21 million USD. This shift resulted in a positive segment profit margin of 4.25%, marking a recovery from the previous year's significant operational losses.
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Segment Capital Expenditures to Depreciation
Altria Group Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Smokeable products | 1.05 | 0.78 | 0.60 | 0.60 | 0.69 |
| Oral tobacco products | 1.59 | 2.73 | 1.26 | 2.09 | 1.63 |
| Wine | — | — | 0.44 | 0.78 | 1.54 |
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 analysis of capital expenditures relative to depreciation across reportable segments reveals divergent investment strategies and shifting financial priorities between 2019 and 2023.
- Smokeable Products
- A steady upward trend is observed in the latter part of the period. The ratio remained below 1.0 from 2019 to 2022, indicating that capital expenditures were lower than depreciation. However, a significant increase occurred in 2023, with the ratio rising to 1.05, marking a transition toward a strategy of asset expansion or modernization that exceeds the rate of depreciation.
- Oral Tobacco Products
- This segment demonstrates a consistent pattern of aggressive reinvestment, with the ratio remaining above 1.0 for the entire duration. High volatility is evident, characterized by peaks of 2.09 in 2020 and 2.73 in 2022. This suggests periodic, intensive capital injections aimed at scaling operations or enhancing production capacity, consistently outpacing the depreciation of existing assets.
- Wine
- A sharp downward trajectory is noted from 2019 to 2021, with the ratio collapsing from 1.54 to 0.44. This decline reflects a significant reduction in capital allocation relative to depreciation. The subsequent absence of data for 2022 and 2023 suggests a cessation of activity or a strategic divestment of this segment.
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Segment Capital Expenditures to Depreciation: Smokeable products
Altria Group Inc.; Smokeable products; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 77) | 68) | 48) | 49) | 61) |
| Depreciation expense | 73) | 87) | 80) | 81) | 88) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.05 | 0.78 | 0.60 | 0.60 | 0.69 |
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).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation expense
= 77 ÷ 73 = 1.05
The capital expenditures for the smokeable products segment exhibited a U-shaped trajectory over the five-year period. Initial spending decreased from US$ 61 million in 2019 to a low of US$ 48 million in 2021, before rising sharply to US$ 77 million by the end of 2023. Concurrently, depreciation expenses remained relatively stable between US$ 80 million and US$ 88 million from 2019 through 2022, followed by a notable decrease to US$ 73 million in 2023.
- Capital Expenditures to Depreciation Ratio Trend
- The ratio experienced an initial decline from 0.69 in 2019 to a plateau of 0.60 during 2020 and 2021. This suggests a period where investment in new assets was significantly lower than the depreciation of existing infrastructure. A reversal occurred in 2022, with the ratio climbing to 0.78, and further increasing to 1.05 in 2023.
- Asset Investment Implications
- The progression of the ratio above 1.00 in 2023 marks a critical transition in capital allocation. While the segment previously operated in a state of asset contraction or basic maintenance—where capital spending did not fully offset the depreciation of the asset base—the most recent data indicates that investment now exceeds the consumption of existing assets. This shift points toward a transition from a maintenance-heavy strategy toward capacity expansion or strategic modernization of the smokeable products infrastructure.
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Segment Capital Expenditures to Depreciation: Oral tobacco products
Altria Group Inc.; Oral tobacco products; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 59) | 90) | 43) | 67) | 44) |
| Depreciation expense | 37) | 33) | 34) | 32) | 27) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.59 | 2.73 | 1.26 | 2.09 | 1.63 |
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).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation expense
= 59 ÷ 37 = 1.59
The oral tobacco products segment demonstrates a volatile investment pattern characterized by fluctuating capital expenditures against a backdrop of steadily increasing depreciation expenses from 2019 to 2023.
- Capital Expenditure Trends
- Annual spending on capital assets exhibits significant variability, with a notable peak of 90 million USD in 2022 and a low of 43 million USD in 2021. This non-linear progression suggests that investments are project-driven or tied to specific capacity expansion cycles rather than a fixed annual growth strategy.
- Depreciation Expense Analysis
- Depreciation expenses have maintained a consistent upward trajectory, rising from 27 million USD in 2019 to 37 million USD in 2023. This gradual increase reflects a steady growth in the total depreciable asset base within the segment over the five-year period.
- Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation remained consistently above 1.0, indicating that the segment invested more in new assets than the value lost through depreciation. The ratio peaked at 2.73 in 2022, coinciding with the highest level of capital spending, before moderating to 1.59 in 2023. This pattern confirms a sustained commitment to expanding or modernizing productive capacity, despite the intermittent nature of the spending.
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Segment Capital Expenditures to Depreciation: Wine
Altria Group Inc.; Wine; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | —) | —) | 12) | 31) | 63) |
| Depreciation expense | —) | —) | 27) | 40) | 41) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | — | — | 0.44 | 0.78 | 1.54 |
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).
1 2023 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation expense
= 0 ÷ 0 = —
The Wine segment experienced a sharp contraction in capital investment and a subsequent decline in the replacement rate of its asset base from 2019 through 2021. While both capital expenditures and depreciation expenses trended downward, the rate of decline in investment significantly outpaced the reduction in depreciation, signaling a strategic shift in capital allocation.
- Capital Expenditure Trend
- Annual capital expenditures decreased precipitously, falling from $63 million in 2019 to $31 million in 2020, and further declining to $12 million by 2021. This represents a cumulative reduction of approximately 81% over the three-year period.
- Depreciation Expense Trend
- Depreciation expenses remained relatively stable between 2019 and 2020, moving from $41 million to $40 million, before decreasing to $27 million in 2021. The gradual decline in depreciation suggests a shrinking depreciable asset base as assets are retired or fully depreciated without being replaced at the previous rate.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation demonstrates a consistent downward trajectory, shifting from 1.54 in 2019 to 0.78 in 2020, and reaching 0.44 by 2021. The transition from a ratio exceeding 1.0 to one significantly below 1.0 indicates a shift from an expansionary phase, where investment exceeded asset wear, to a phase of capital disinvestment. By 2021, the segment was reinvesting less than half of its annual depreciation, suggesting a strategy focused on harvesting existing assets rather than growth or modernization.
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Net revenues
Altria Group Inc., net revenues by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Smokeable products | 21,756) | 22,476) | 22,866) | 23,089) | 21,996) |
| Oral tobacco products | 2,667) | 2,580) | 2,608) | 2,533) | 2,367) |
| Wine | —) | —) | 494) | 614) | 689) |
| All other | 60) | 40) | 45) | (83) | 58) |
| Total | 24,483) | 25,096) | 26,013) | 26,153) | 25,110) |
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).
Total net revenues exhibited a peak in 2020 at US$ 26,153 million, followed by a consistent downward trajectory over the subsequent three years, reaching US$ 24,483 million by the end of 2023. This overall contraction is primarily driven by the performance of the largest revenue segment.
- Smokeable Products
- This segment represents the primary source of revenue for the organization. After an initial increase from US$ 21,996 million in 2019 to a peak of US$ 23,089 million in 2020, a steady decline was observed. By December 31, 2023, revenues fell to US$ 21,756 million, reflecting a persistent reduction in the main income stream over the final three reporting periods.
- Oral Tobacco Products
- A positive growth trend is evident in the oral tobacco segment. Revenues increased from US$ 2,367 million in 2019 to US$ 2,667 million in 2023. This segment demonstrates resilience and growth, acting as a partial hedge against the declines seen in smokeable products.
- Wine and Other Segments
- The wine segment showed a marked decline, dropping from US$ 689 million in 2019 to US$ 494 million in 2021, with no reported revenues for 2022 and 2023, suggesting a divestiture or cessation of operations in this category. The "All other" segment remained immaterial to the total financial position, characterized by volatility, including a negative revenue figure of US$ 83 million in 2020.
The observed patterns indicate a concentration of revenue risk within smokeable products, which has entered a period of contraction. The growth in oral tobacco products suggests a shift in product mix, while the removal of wine revenues points toward a narrowing of the reportable business segments.
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Operating companies income (loss) (OCI)
Altria Group Inc., operating companies income (loss) (oci) by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Smokeable products | 10,670) | 10,688) | 10,394) | 9,985) | 9,009) |
| Oral tobacco products | 1,722) | 1,632) | 1,659) | 1,718) | 1,580) |
| Wine | —) | —) | 21) | (360) | (3) |
| All other | (74) | (36) | (97) | (172) | (16) |
| Amortization of intangibles | (128) | (73) | (72) | (72) | (44) |
| General corporate expenses | (643) | (292) | (345) | (227) | (199) |
| Corporate asset impairment and exit costs | —) | —) | —) | 1) | (1) |
| Total | 11,547) | 11,919) | 11,560) | 10,873) | 10,326) |
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).
Total operating income demonstrated a steady upward trajectory from 2019 to 2022, rising from 10,326 million US$ to a peak of 11,919 million US$, before experiencing a contraction to 11,547 million US$ in 2023. The overall financial performance was primarily driven by the smokeable products segment, while total growth was tempered by increasing corporate expenses and volatility in non-core segments.
- Core Segment Performance
- Smokeable products served as the dominant contributor to operating income, growing from 9,009 million US$ in 2019 to 10,688 million US$ in 2022. This growth trend plateaued in 2023, with a slight decrease to 10,670 million US$. Oral tobacco products remained relatively stable over the five-year period, fluctuating between 1,580 million US$ and 1,722 million US$, ending the period with a slight recovery in 2023.
- Non-Core and Other Segments
- The wine segment exhibited significant volatility, recording a substantial loss of 360 million US$ in 2020 before returning to a modest profit of 21 million US$ in 2021; no values were reported for this segment in 2022 and 2023. The "All other" category remained consistently negative throughout the period, with the most significant loss occurring in 2020 at 172 million US$.
- Corporate Expenses and Amortization
- General corporate expenses showed a marked increase over the analysis period, particularly in the final year, rising from 199 million US$ in 2019 to 643 million US$ in 2023. Similarly, amortization of intangibles trended upward, increasing from 44 million US$ in 2019 to 128 million US$ in 2023. These rising costs exerted downward pressure on the total operating income, contributing to the decline observed in 2023.
- Total Income Variance
- The decline in total operating income from 11,919 million US$ in 2022 to 11,547 million US$ in 2023 is attributable to the combination of stagnating growth in smokeable products and a sharp escalation in general corporate expenses and amortization costs.
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Depreciation expense
Altria Group Inc., depreciation expense by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Smokeable products | 73) | 87) | 80) | 81) | 88) |
| Oral tobacco products | 37) | 33) | 34) | 32) | 27) |
| Wine | —) | —) | 27) | 40) | 41) |
| General corporate and other | 34) | 33) | 31) | 32) | 26) |
| Total | 144) | 153) | 172) | 185) | 182) |
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).
Total depreciation expense across all reportable segments exhibited a general downward trajectory between 2019 and 2023, decreasing from US$ 182 million to US$ 144 million. While total expenditures peaked in 2020 at US$ 185 million, a consistent year-over-year decline was observed from 2021 through 2023.
- Smokeable Products
- As the largest contributor to depreciation, this segment showed a net decrease from US$ 88 million in 2019 to US$ 73 million in 2023. A temporary increase occurred in 2022, reaching US$ 87 million, before dropping to its lowest point in the five-year period during 2023.
- Oral Tobacco Products
- This segment demonstrates a consistent growth pattern in depreciation expenses, rising from US$ 27 million in 2019 to US$ 37 million in 2023. This upward trend suggests ongoing capital investment or an expanding asset base within the oral tobacco category.
- Wine
- Depreciation expenses for the wine segment declined from US$ 41 million in 2019 to US$ 27 million in 2021. The absence of recorded expenses for 2022 and 2023 indicates the removal of this segment from the reportable asset base.
- General Corporate and Other
- Expenses in the general corporate category remained relatively stable with a slight incremental increase, rising from US$ 26 million in 2019 to US$ 34 million in 2023.
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Capital expenditures
Altria Group Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Smokeable products | 77) | 68) | 48) | 49) | 61) |
| Oral tobacco products | 59) | 90) | 43) | 67) | 44) |
| Wine | —) | —) | 12) | 31) | 63) |
| General corporate and other | 60) | 47) | 66) | 84) | 78) |
| Total | 196) | 205) | 169) | 231) | 246) |
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).
Total capital expenditures exhibited a general downward trajectory over the five-year period, decreasing from 246 million USD in 2019 to 196 million USD in 2023. The lowest aggregate spending occurred in 2021, with a total of 169 million USD, followed by a partial recovery in 2022 and subsequent stabilization in 2023.
- Smokeable Products
- Expenditures in this segment remained relatively stable between 2019 and 2021, fluctuating between 48 million USD and 61 million USD. However, a notable upward trend emerged starting in 2022, with spending increasing to 68 million USD and peaking at 77 million USD by 2023, indicating a renewed focus on capital investment in this area.
- Oral Tobacco Products
- This segment displayed significant volatility in capital allocation. After an initial increase to 67 million USD in 2020, spending dropped to 43 million USD in 2021 before surging to a five-year peak of 90 million USD in 2022. By 2023, expenditure moderated to 59 million USD.
- Wine Segment
- A consistent and sharp decline in capital expenditures is observed within the wine segment. Spending fell from 63 million USD in 2019 to 31 million USD in 2020, and further decreased to 12 million USD in 2021. No capital expenditures were recorded for this segment in 2022 or 2023, suggesting a strategic divestment or cessation of investment in this business line.
- General Corporate and Other
- Capital spending for general corporate activities peaked at 84 million USD in 2020 before entering a period of decline, reaching a low of 47 million USD in 2022. A slight increase to 60 million USD was recorded in 2023, though the level remains below the 2019 and 2020 benchmarks.
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