How Will Altria Perform In Q1 2016?

Key Factors That May Affect The Quarter:

1) Solid Tone Set In Q4 2015

• Revenue grew 2.5% and net income rose by 1% in Q4 2015.
• Pricing power helped the company increase growth, despite a drop in domestic cigarette shipments.
• Market share for Marlboro also increased to 44%, and faster growth in the smokeless segment helped increase the overall results.

2) Growth Expected In The E-Cigarette Market

• Altria has become a significant player in this arena.
• However, despite big brands like MarkTen and Green Smoke, revenue from this segment is very small.
• The company has expanded the distribution of such products in several lead markets, which should drive sales.
• Partnership with Philip Morris may help to promote products which use the heat-not-burn technology.

3) Productivity Initiative Implemented

• Altria announced a productivity initiative in the quarter, which is expected to deliver ~$300M in annual productivity savings by the end of 2017.
• This would include reducing expenditure on certain SG&A infrastructure and a leaner organization.
• The savings would be invested in brand building, harm reduction, and regulatory capabilities.
• This would also reap profits in the long term.

Have more questions on Altria? Have a look at the links below:

• What Are Altria’s Strengths Driving Long-Term Growth?
• What Are Some Obstacles To Altria’s Long-Term Growth?
• How Will Altria’s Revenue And EBITDA Change In The Next 3 Years?
• How Has Altria’s Revenue And EBITDA Composition Changed In The Last 5 Years?
• Altria: Year 2015 In Review
• How Has Altria’s Shipment Volume, By Brand, Changed Over The Past 3 Years?
• How Has Altria’s Retail Share In Smokable Products And Smokeless Products Changed Over The Last Year?
• What is Altria’s Revenue And EBITDA Breakdown?
• What is Altria’s Fundamental Value Based On Expected 2016 Results?
• By What Percentage Did Altria’s Revenue & EBITDA Grow In The Last 5 Years?

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