The Company sees some benefits from pricing and smokeless tobacco
In addition to announcing the upcoming retirement of CEO Michael Szymanczyk, Altria Group Inc. reported that fourth-quarter profit fell about 9% on lease and restructuring charges last week, despite gains from higher prices and smokeless tobacco products.
In cigarettes, Philip Morris USA’s volumes were up slightly for the quarter at 33.7 billion units (+.2%)— primarily attributed to the dynamics of stock trading and retail profit share of L & M, which is partially offset the loss of retail share in the Marlboro and other brands as well as one less shipping day. Szymanczyk said the company continues to focus on maximizing revenue from its cigarette business, while maintaining a modest fraction of the time Marlboro over time.
Segment net sales of cigarettes have increased by 2.9% in the fourth quarter, primarily due to higher prices list, and net income from excise taxes rose by 4.2%. For the entire 2011 segment net sales of cigarettes fell by 1.1% mainly due to lower volume, partially offset by higher prices list, and net income from excise taxes rose by 0.4%.
The smokeless products segment’s 2011 fourth-quarter and full-year net revenues and revenues net of excise taxes increased primarily due to higher volume and pricing. 2011 fourth-quarter and full-year net revenues increased 6.6% and 4.8%, respectively, and revenues net of excise taxes increased 6.8% for the fourth quarter and grew 5.0% for the full year of 2011.
The cigars segment’s 2011 second-half financial results were stronger compared to the first half of 2011 as Middleton made significant progress on improving its profitability and profits by introducing new products and brand initiatives, and soft black. As a result of these initiatives, and soft black high reached in 2011 fourth quarter and full year results of the retail stocks.
The cigars segment’s 2011 fourth-quarter net revenues increased 7.3% mainly due to lower advertising costs and higher prices list, partially offset by lower volume. 2011 full year net income rose by 1.3% mainly due to the high prices of the list. Revenues net of excise taxes increased by 26.8% in the fourth quarter and grew by 3.4% for the full year 2011.
The company also announced that the constant attention the development of products lower the risk associated with the agreement from the windows A / S, a branch Fertin Pharma A / S, the development of non-combustible nicotine-containing products to adult consumers of tobacco products. “Fertin is a world leader in the development and production of nicotine gum with additional features and other products and technologies,” said Szymanczyk.
As previously reported in CSP Daily News, Szymanczyk also said that he would resign as chairman and chief executive officer after the meeting of shareholders annually in May. Martin Barrington will enter into the role, and David Beran will serve as president of Altria and Chief Operating Officer Altria, directly or indirectly owns 100% of the shares of each of PM USA, USSTC, Middleton, and Ste. Michelle and closed. Altria has continuing economic and voting shares of SABMiller.