PM USA’s cigarette shipments increased

Philip Morris USA’s domestic cigarette shipment volume during the third quarter to the end of September, at 33.182 billion, was 0.1 percent higher than it was during the third quarter of 2014, 33.165 billion.

Marlboro volume was down by 0.7 percent to 28.392 billion; while the volume of the company’s other premium brands was down by 4.3 percent to 1.769 billion but its discount brand volume was up by 10.4 percent to 3,021 billion.

In presenting its third-quarter and nine-month figures, Altria said that PM USA’s reported domestic cigarettes shipment volume had benefited in the third quarter from industry volume improvement and retail share gains.

‘For the first nine months of 2015, PM USA’s reported domestic cigarettes shipment volume increased 1.5 percent also due to these factors and trade inventory movements,’ it said.

‘When adjusted for trade inventory movements and other factors, PM USA estimates that its domestic cigarettes shipment volume was unchanged in the third quarter and increased approximately 0.5 percent for the first nine months.

‘PM USA estimates that total industry cigarette volumes declined approximately 1 percent in the third quarter and approximately 0.5 percent for the first nine months.’

PM USA’s domestic-market retail share during the three months to the end of September, at 51.3 percent, was increased by 0.4 of a percentage point on that of the third quarter of 2014.

Marlboro’s market share increased by 0.1 of a percentage point to 43.9 percent, while the share of the company’s other premium brands was down by 0.1 of a percentage point to 2.8 percent, and the share of its discount brands was up by 0.4 of a percentage point to 4.6 percent.

Middleton’s cigar shipment volume during the first three months, at 351 million, was increased by 1.2 percent on that of the three months to the end of September 2014, as Black & Mild volume fell by 0.3 percent to 340 million but other-cigar volume rose by 83.3 percent from six million to 11 million.

Middleton’s retail share during the third quarter, at 28.6 percent, was down by 0.7 of a percentage point on that of the three months to the end of September 2014, with Black & Mild’s share down 0.8 of a percentage point to 28.1 percent but the share of other brands increased by 0.1 of a percentage point to 0.5 percent.

USSTC and PM USA’s combined domestic smokeless products shipment volume during the third quarter, at 204.9 million cans and packs, was up by 0.9 percent on that of the three months to the end of September 2014.

Shipments of Copenhagen and Skoal taken together were up by 1.7 percent to 187.3 million packs and cans, while shipments of other brands were down by 6.9 percent to 18.9 million packs and cans.

USSTC estimated that, after adjusting for trade inventory movements and other factors, its domestic smokeless products shipment volume grew by about 1.5 percent during the third quarter and by about 2.0 percent during the first nine months of 2015.

USSTC estimated also that the smokeless products category volume grew by about 2.5 percent during the past six months.

USSTC and PM USA’s retail share of the domestic smokeless products market during the three months to the end of September, at 55.0 percent, was down by 0.2 of a percentage point.

The share of Copenhagen and Skoal taken together increased by 0.2 of a percentage point to 51.4 percent, while the share of the companies’ other brands fell by 0.4 of a percentage point to 3.6 percent.

Altria’s 2015 third-quarter reported diluted earnings per share (EPS) were up by 9.9 percent to $0.78 on those of the third quarter of 2014, while its adjusted diluted EPS, which excludes the impact of special items, increased by 8.7 percent to $0.75.

“Altria continued to deliver outstanding performance in the third quarter and for the first nine months,” said Marty Barrington, Altria’s chairman, CEO and president.

“Once again, our businesses strengthened their market leadership, with strong income growth and solid retail share gains by the iconic Marlboro and Copenhagenbrands.

“We believe our year-to-date adjusted EPS growth of 11.5 percent positions us well to deliver on our full-year plans.

“In addition, we’re pleased Anheuser-BuschInBev and SABMiller continue to work together to finalize terms in advance of their possible combination. We see this transaction, and our participation in it as SABMiller’s largest shareholder, as a compelling opportunity to strengthen for our shareholders our position in the global brewing business.”