Seeking Alpha

More on Altria's Q1

  • Altria (MO) reports smokeable product volume fell 2.5% in Q1. The company's Marlboro brand saw a 2.4% drop in volume.
  • The company says it will continue to make disciplined investments to help it find new income streams.
  • 2014 EPS guidance is reaffirmed at $2.52-$2.59.
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Comments (4)
  • SaltyDog62
    , contributor
    Comments (791) | Send Message
     
    I for one believe them!
    24 Apr 2014, 07:09 AM Reply Like
  • toxophun
    , contributor
    Comments (4) | Send Message
     
    That seems a significant drop for Q1. My understanding is the general smoking population is declining by 2% annually. If this figure is anywhere near accurate, we are looking at an approx 400 % decline from the norm.
    24 Apr 2014, 08:55 AM Reply Like
  • ThetaDecay
    , contributor
    Comments (107) | Send Message
     
    toxophun -

     

    That 2.5% figure is calculated on a year-over-year basis, so it's comparing sales from Q1 2014 to sales from Q1 2013. Smokable product volume is not falling at a rate of 10% a year.

     

    While the number of US smokers are decreasing, MO's earnings report indicates that they actually increased market share, both in cigarettes and cigars. Cigarettes increased from 50.5% to 50.7% of the market, and cigars increased from 28.1% to 28.4%.

     

    Furthermore, it's worth noting that smokeless product volume increased 5.9% Y/Y.
    24 Apr 2014, 11:49 AM Reply Like
  • Matthew Mazurczak
    , contributor
    Comments (1364) | Send Message
     
    @toxophun. What is important is MOs ability to raise prices more then the decline in volumes. Also as you know percentages work faster going up then going down in magnitude.
    24 Apr 2014, 03:58 PM Reply Like
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