Analysis of Reportable Segments
Altria Group Inc. operates in 3 segments: Smokeable products; Oral tobacco products; and Wine.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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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 | |||||
| Oral tobacco products | |||||
| Wine |
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).
- Smokeable products profit margin
- The profit margin for smokeable products demonstrates a consistent upward trend from 2019 through 2023. Starting at 40.96% in 2019, it progressively increased each year, reaching 49.04% by the end of 2023. This steady growth indicates improving profitability in this segment over the five-year period.
- Oral tobacco products profit margin
- The oral tobacco products segment shows some fluctuation in profit margins over the observed timeframe. It began at 66.75% in 2019, experienced a slight increase to 67.82% in 2020, followed by a decline in 2021 to 63.61%. The margin stabilized somewhat during 2022 and 2023, with values close to 63.26% and 64.57%, respectively, suggesting modest recovery but remaining below early period levels.
- Wine segment profit margin
- The wine segment exhibits significant volatility during the available periods. Initially showing a marginal negative margin of -0.44% in 2019, it sharply declined to -58.63% in 2020, indicating substantial losses that year. A recovery occurred in 2021, with a positive margin of 4.25%, and data is missing for subsequent years, preventing further trend analysis. The notable swing reflects operational or market challenges impacting profitability in this segment.
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) | |||||
| Net revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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 × ÷ =
The analysis of the annual financial data for the Smokeable products segment reveals several notable trends over the five-year period from 2019 to 2023.
- Operating Companies Income (OCI)
- The Operating Companies Income shows a rising trend from 2019 through 2022, increasing from $9,009 million to $10,688 million. However, in 2023, a slight decline is observed with OCI marginally decreasing to $10,670 million. Overall, the increase from 2019 to 2023 represents strong growth in income, although the plateau in the final year suggests a possible stabilization or emerging challenges in income growth.
- Net Revenues
- Net revenues experienced an initial growth from $21,996 million in 2019 to $23,089 million in 2020. Subsequently, revenues slightly decreased each year, declining from $22,866 million in 2021 to $21,756 million in 2023. This gradual decline indicates potential market pressures or changing consumer behavior affecting revenue generation in this segment despite earlier gains.
- Segment Profit Margin
- The profit margin demonstrates a consistent and meaningful upward trend throughout the five years, increasing from 40.96% in 2019 to 49.04% in 2023. This improvement denotes enhanced operational efficiency or cost management within the segment, leading to greater profitability even as revenues exhibit a decreasing trend in later years.
In summary, the segment exhibits solid income growth and improving profitability margins over the period analyzed. Nevertheless, the declining net revenues since 2020 highlight a potential area of concern that may warrant strategic attention to sustain long-term growth. The combination of steady profit margin improvement alongside flattening income and falling revenue suggests effective cost controls are compensating for revenue challenges.
Segment Profit Margin: Oral tobacco products
Altria Group Inc.; Oral tobacco products; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating companies income (loss) (OCI) | |||||
| Net revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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 × ÷ =
- Operating Companies Income (OCI)
- The operating companies income showed fluctuation over the five-year period. Starting at $1,580 million in 2019, it increased to $1,718 million in 2020, followed by a slight decline to $1,659 million in 2021 and further to $1,632 million in 2022. In 2023, it rebounded to $1,722 million, reaching its highest level in the observed period.
- Net Revenues
- Net revenues demonstrated a consistent upward trend across the five years. Revenues increased from $2,367 million in 2019 to $2,533 million in 2020 and continued to rise to $2,608 million in 2021. There was a slight decrease in 2022 to $2,580 million, but revenues recovered in 2023 to $2,667 million, reflecting overall growth during the period.
- Segment Profit Margin
- The segment profit margin exhibited variability but remained within a relatively narrow range. It started at 66.75% in 2019, reached a peak of 67.82% in 2020, then declined to 63.61% in 2021 and slightly decreased to 63.26% in 2022. In 2023, the margin improved to 64.57%, indicating some recovery but remaining below the earlier peak levels.
- Overall Analysis
- Over the five-year span, net revenues consistently increased, suggesting steady demand and effective revenue generation for the segment. Operating income experienced some volatility but ended at a higher point than it started, implying overall operational profitability improvement. The profit margin, while fluctuating, showed a modest downward trend from 2020 onward, which could suggest increased costs or pricing pressures affecting profitability efficiency despite revenue growth. The rebound in operating income and profit margin in the last year indicates potential operational improvements or favorable market conditions returning.
Segment Profit Margin: Wine
Altria Group Inc.; Wine; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating companies income (loss) (OCI) | |||||
| Net revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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 × ÷ =
The financial data for the "Wine" segment over the provided periods reveals notable fluctuations in both profitability and revenue performance.
- Operating Companies Income (Loss) (US$ in millions)
- The segment experienced a significant deterioration in operating income in 2020, with a loss of $360 million compared to a minor loss of $3 million in 2019. However, this downward trend reversed sharply in 2021, returning to a positive operating income of $21 million. Data for 2022 and 2023 is unavailable, limiting further analysis for those years.
- Net Revenues (US$ in millions)
- Net revenues demonstrate a consistent decline over the first three years. Revenue decreased from $689 million in 2019 to $614 million in 2020, followed by a further drop to $494 million in 2021. There is no data provided for 2022 and 2023.
- Segment Profit Margin (%)
- The profit margin mirrored the operating income trend, starting slightly negative at -0.44% in 2019, plummeting to a sharply negative margin of -58.63% in 2020, indicative of substantial losses relative to revenues. In 2021, the margin improved significantly to 4.25%, reflecting the segment's return to profitability. Margins for 2022 and 2023 are not reported.
Overall, the segment encountered considerable challenges in 2020, characterized by a steep decline in profitability and a marked operating loss despite revenue declines. The year 2021 marked a recovery phase with positive operating income and profit margins, albeit against a backdrop of decreasing revenue, suggesting improved cost control or operational efficiency. The absence of data for the last two years restricts ongoing trend analysis.
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 | |||||
| Oral tobacco products | |||||
| Wine |
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).
- Smokeable products capital expenditures to depreciation ratio
- The ratio for smokeable products showed a declining trend from 0.69 in 2019 to 0.6 during the years 2020 and 2021, indicating a relative stabilization in capital expenditures compared to depreciation. However, from 2021 onwards, there was a noticeable increase, reaching 0.78 in 2022 and sharply rising to 1.05 in 2023. This suggests an accelerating investment in capital assets relative to depreciation expense in the most recent years.
- Oral tobacco products capital expenditures to depreciation ratio
- The ratio exhibited fluctuations across the analyzed periods. It started at 1.63 in 2019, increased to 2.09 in 2020, then declined significantly to 1.26 in 2021. A sharp recovery occurred in 2022 with a peak at 2.73, followed by a decrease to 1.59 in 2023. These variations indicate inconsistent capital investment patterns relative to depreciation, with a generally high level of capital expenditures relative to the depreciation of assets in this segment.
- Wine capital expenditures to depreciation ratio
- The data for the wine segment is incomplete beyond 2021. For the reported periods, the ratio declined continuously from 1.54 in 2019 to 0.78 in 2020, and further down to 0.44 in 2021. This consistent downward trend suggests a reduction in capital expenditures relative to depreciation, possibly indicating a phase of reduced investment or increased asset aging without replacement. Data is missing for 2022 and 2023, limiting further analysis for this segment.
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 | |||||
| Depreciation expense | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
= ÷ =
- Capital Expenditures
- Capital expenditures in the segment exhibited a fluctuating trend over the observed period. Initially, there was a decrease from $61 million in 2019 to $49 million in 2020, followed by a slight decline to $48 million in 2021. Subsequently, capital spending increased notably, reaching $68 million in 2022 and further rising to $77 million in 2023, indicating renewed investment activity in the latter years.
- Depreciation Expense
- Depreciation expense showed a general downward trend throughout the period. Starting at $88 million in 2019, it decreased to $81 million in 2020 and remained relatively stable at $80 million in 2021. Although there was a slight uptick to $87 million in 2022, the expense declined again to $73 million in 2023, marking the lowest point in the data set.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation presented an overall increasing trajectory. The ratio dropped from 0.69 in 2019 to 0.60 in both 2020 and 2021, reflecting capital expenditures being less than depreciation consistently in those years. However, a notable improvement occurred in 2022 when the ratio rose to 0.78, and it surpassed parity in 2023, reaching 1.05. This suggests that capital investments grew to slightly exceed the depreciation charges, potentially indicating expansion or renewal of asset base during the most recent period.
Segment Capital Expenditures to Depreciation: Oral tobacco products
Altria Group Inc.; Oral tobacco products; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation expense | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
= ÷ =
- Capital Expenditures
- Capital expenditures exhibited fluctuations over the five-year period. After increasing from 44 million US dollars in 2019 to 67 million in 2020, expenditures declined to 43 million in 2021. This was followed by a significant rise to 90 million in 2022 before decreasing again to 59 million in 2023. Overall, capital spending showed variability with notable peaks in 2020 and 2022.
- Depreciation Expense
- Depreciation expense demonstrated a gradual upward trend. Starting at 27 million US dollars in 2019, the expense increased steadily each year, reaching 37 million by 2023. The increments were relatively moderate, indicating consistent depreciation aligned with asset usage or acquisition over time.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation fluctuated throughout the period, reflecting changes in asset investment relative to asset usage recognition. The ratio increased from 1.63 in 2019 to a peak of 2.09 in 2020, suggesting higher capital investment relative to depreciation that year. It then dropped to 1.26 in 2021, signaling a temporary decrease in reinvestment. A sharp rise to 2.73 in 2022 indicated intensive capital expenditure compared to depreciation expense, followed by a decline to 1.59 in 2023. These variations highlight periods of intensified investment activity interspersed with more conservative spending.
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 | |||||
| Depreciation expense | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
= ÷ =
- Capital Expenditures
- Capital expenditures exhibit a clear declining trend over the observed periods. Starting from 63 million US dollars in 2019, expenditures sharply decreased to 31 million in 2020 and further to 12 million in 2021. Data for 2022 and 2023 are missing, preventing assessment of the most recent years.
- Depreciation Expense
- Depreciation expense shows a downward trajectory, though less steep compared to capital expenditures. It recorded a value of 41 million US dollars in 2019, marginally decreased to 40 million in 2020, and then declined more significantly to 27 million in 2021. Corresponding values for 2022 and 2023 are unavailable.
- Segment Capital Expenditures to Depreciation Ratio
- This ratio, which measures the relationship between capital expenditures and depreciation, also decreases consistently. Beginning at 1.54 in 2019, it fell to 0.78 in 2020 and further to 0.44 in 2021. This indicates that capital spending is being reduced more rapidly than depreciation, suggesting a potential reduction in investment in the segment's fixed assets relative to asset write-downs.
- Overall Insights
- The overall pattern indicates a significant reduction in capital investment over the reported years, coupled with a decline in depreciation expenses. The sharp decrease in the capital expenditures to depreciation ratio implies a shrinking reinvestment rate, which might affect the segment's future capacity or asset base. The absence of data for the latest two years restricts the ability to evaluate if these trends persisted or reversed more recently.
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 | |||||
| Oral tobacco products | |||||
| Wine | |||||
| All other | |||||
| Total |
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).
- Smokeable products
- The net revenues from smokeable products showed an initial increase from 21,996 million USD in 2019 to 23,089 million USD in 2020. However, a slight decline followed with revenues decreasing to 22,866 million USD in 2021, then gradually falling further to 22,476 million USD in 2022 and 21,756 million USD in 2023. Overall, there is a downward trend after 2020, suggesting challenges or reduced demand in this segment over the last three years.
- Oral tobacco products
- This segment demonstrated consistent growth across the observed periods. Starting at 2,367 million USD in 2019, revenues increased steadily each year to 2,533 million USD in 2020, 2,608 million USD in 2021, a slight dip to 2,580 million USD in 2022, and culminating at 2,667 million USD in 2023. This trend indicates a resilient or expanding market presence for oral tobacco products despite minor fluctuations.
- Wine
- The wine segment experienced a clear decline in revenues from 689 million USD in 2019 to 614 million USD in 2020, and further down to 494 million USD in 2021. Data for 2022 and 2023 is not provided, which may imply discontinuation or divestiture of this segment. The downward trajectory in the available years signals shrinking performance or strategic withdrawal.
- All other
- Revenues under the "All other" category showed volatility. Starting from a modest 58 million USD in 2019, the segment reported a loss of 83 million USD in 2020. This was followed by a recovery in 2021 with revenues rising to 45 million USD, maintaining similar levels in 2022 at 40 million USD, and increasing to 60 million USD in 2023. This pattern suggests a segment subject to fluctuations, but recent years indicate positive momentum.
- Total
- Total reportable segment net revenues increased from 25,110 million USD in 2019 to a peak of 26,153 million USD in 2020. Thereafter, a gradual decline occurred with totals of 26,013 million USD in 2021, 25,096 million USD in 2022, and 24,483 million USD in 2023. The overall trend points to a peak in 2020 followed by a consistent reduction over the subsequent three years, primarily driven by declines in the smokeable products and wine segments despite growth in oral tobacco products and recovery in the other category.
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 | |||||
| Oral tobacco products | |||||
| Wine | |||||
| All other | |||||
| Amortization of intangibles | |||||
| General corporate expenses | |||||
| Corporate asset impairment and exit costs | |||||
| Total |
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 operating companies income data over the five-year period demonstrates a generally positive trend in core product segments, accompanied by increasing corporate and amortization expenses which impact overall profitability.
- Smokeable products
- This segment shows a consistent increase from 2019 to 2022, rising from $9,009 million to a peak of $10,688 million, reflecting steady growth in this primary revenue source. However, there is a slight decline in 2023 to $10,670 million, indicating a potential plateau or marginal reduction in income for the latest period.
- Oral tobacco products
- The income from oral tobacco products also illustrates moderate growth, increasing from $1,580 million in 2019 to $1,718 million in 2020. There is a minor dip in 2021 and 2022 to $1,659 million and $1,632 million respectively, before rebounding to $1,722 million in 2023, suggesting some volatility but an overall stable upward trend.
- Wine
- Wine segment results are inconsistent and show considerable volatility. Reporting a small loss in 2019 (-$3 million) sharply worsened to a significant loss in 2020 (-$360 million). A positive turnaround occurs in 2021 with a gain of $21 million, after which data for 2022 and 2023 is missing. This irregular pattern might indicate operational challenges or a strategic shift in this segment.
- All other
- The "All other" category depicts persistent losses throughout the period, with a high of -$172 million in 2020, improving somewhat to -$36 million in 2022 before deteriorating again to -$74 million in 2023. This suggests ongoing underperformance or costs in miscellaneous activities impacting net income.
- Amortization of intangibles
- Amortization expenses have increased notably from -$44 million in 2019 to -$128 million in 2023. The rise is gradual through 2019 to 2022, but the spike in 2023 indicates elevated intangible asset charges, which could be due to recent acquisitions or reassessments of asset values affecting profitability negatively.
- General corporate expenses
- General corporate expenses have risen substantially, from -$199 million in 2019 to -$643 million in 2023. The increase is particularly pronounced after 2020, highlighting escalating overhead or administrative costs that may require scrutiny to manage operational efficiency.
- Corporate asset impairment and exit costs
- Reported impairment and exit costs are minimal and sporadic, with a small expense of -$1 million in 2019 and a positive adjustment of $1 million in 2020. No amounts are recorded for subsequent years, indicating these were isolated charges with limited impact on overall results.
- Total operating companies income
- Total income steadily grows from $10,326 million in 2019 to a high of $11,919 million in 2022, reflecting cumulative gains from operational segments. However, a decrease to $11,547 million in 2023 reveals a slight contraction, likely influenced by increased amortization and corporate expenses offsetting gains in core sectors.
In summary, the company exhibits growth in its primary revenue-generating segments—smokeable and oral tobacco products—although this growth moderates in the most recent year. Cost pressures, especially from general corporate expenses and intangible amortization, have intensified, adversely affecting net operating income. Volatility in the wine segment and persistent losses in other miscellaneous categories further complicate the overall financial performance. The marginal decline in total income in 2023 suggests the need for strategic focus on cost management and segment optimization to sustain profitable growth.
Depreciation expense
Altria Group Inc., depreciation expense by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Smokeable products | |||||
| Oral tobacco products | |||||
| Wine | |||||
| General corporate and other | |||||
| Total |
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 depreciation expense data over the analyzed period reveals varying trends across different segments.
- Smokeable products
- The depreciation expense for smokeable products started at 88 million USD in 2019, then gradually declined to 81 million USD in 2020 and 80 million USD in 2021. It slightly rebounded to 87 million USD in 2022 before decreasing again to 73 million USD in 2023. Overall, this segment exhibits a downward trend with some fluctuations.
- Oral tobacco products
- Depreciation expense in the oral tobacco products segment showed a consistent increase over the period. Beginning at 27 million USD in 2019, it rose steadily each year, reaching 37 million USD in 2023. This indicates growing investment or asset base in this segment.
- Wine
- The wine segment's depreciation expense decreased notably from 41 million USD in 2019 to 40 million USD in 2020, and then dropped substantially to 27 million USD in 2021. The data for 2022 and 2023 is unavailable, which limits further trend analysis for this segment.
- General corporate and other
- This category shows a steady upward trend in depreciation expense. Starting from 26 million USD in 2019, the expense increased annually to reach 34 million USD in 2023, suggesting increased asset utilization or capital expenditures at the corporate level.
- Total
- The total depreciation expense across all segments peaked at 185 million USD in 2020. After that, it displayed a continuous decline, falling to 172 million USD in 2021, then to 153 million USD in 2022, and further to 144 million USD in 2023. This overall decrease in total depreciation expense may reflect asset disposals, lower capital investments, or changes in the company's asset base.
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 | |||||
| Oral tobacco products | |||||
| Wine | |||||
| General corporate and other | |||||
| Total |
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 capital expenditures for smokeable products exhibit an overall increasing trend over the five-year period. Starting at $61 million in 2019, expenditures decreased slightly in 2020 and 2021 but rose significantly in 2022 and further increased in 2023, reaching $77 million. This indicates renewed or growing investment focus in this segment during the latter years.
For oral tobacco products, the capital expenditures show greater volatility. Beginning at $44 million in 2019, there was a notable increase to $67 million in 2020, followed by a drop to $43 million in 2021. In 2022, expenditures surged sharply to $90 million before declining to $59 million in 2023. This pattern suggests fluctuating investment levels, possibly responding to market conditions or strategic shifts within this segment.
Investment in the wine segment demonstrates a clear declining trend with a significant reduction over three years. Capital expenditures were $63 million in 2019, decreased to $31 million in 2020, and further dropped sharply to $12 million in 2021. No data is reported for 2022 and 2023, which may imply a cessation or significant reduction of capital spending in this area during these years.
General corporate and other capital expenditures exhibit a downward trajectory from $78 million in 2019 to $47 million in 2022, before rising slightly to $60 million in 2023. This overall decline followed by a modest rebound may reflect changing corporate priorities or cost optimization measures.
The total capital expenditures across all reportable segments show a downward movement from $246 million in 2019 to a low of $169 million in 2021. This was followed by a recovery to $205 million in 2022, and a slight decrease again to $196 million in 2023. The trend highlights an initial contraction in capital spending, with partial recovery in more recent years.
Overall, the data exhibits a strategic reallocation of capital expenditures, with increased investments in smokeable and oral tobacco products segments in recent years, contrasted by a decline and eventual discontinuation of investment in the wine segment. General corporate spending has decreased but shows signs of slight increase toward the end of the observed period. The total capital expenditure pattern reflects these segment-level changes, indicating adjustments aligned with shifting business focus and priorities.