Altria's Q4 2024: Navigating Contradictions in NJOY Patent Resolution, Earnings Outlook, and Pricing Strategies

These are the key contradictions discussed in Altria's latest 2024Q4 earnings call, specifically including: NJOY patent infringement resolution, earnings growth projections, NJOY strategy, and on! pricing strategy:



Strong Financial Performance and Cash Returns:
- Altria Group reported adjusted diluted earnings per share grew by 3.4% for the full year.
- The company returned over $10.2 billion in dividends and share repurchases to shareholders in 2024.
- These results were driven by strong core tobacco business income growth and margin expansion.

Smoke-Free Products and Market Dynamics:
- NJOY's consumables volume grew by 15% to 12.8 million units in Q4, with retail share of consumables increasing by 2.8 share points year-over-year.
- The growth in smoke-free products was attributed to expanded distribution and strategic marketing efforts.

Illicit E-Vapor Market and Regulatory Challenges:
- The e-vapor category grew by approximately 30% in 2024, with illicit products representing more than 60% of the category.
- The widespread availability of illicit disposable e-vapor products is jeopardizing the opportunity for tobacco harm reduction.

Consumer and Industry Dynamics:
- Total nicotine volumes increased by approximately 2% over the past 5 years on a compounded annual basis.
- The shift towards smoke-free alternatives is encouraging, with these alternatives representing 45% of the total nicotine space.