• March 28, 2024

PM USA’s volume down in 3Q

 PM USA’s volume down in 3Q

Philip Morris USA’s domestic cigarette shipment volume during the third quarter to the end of September, at 32.864 billion, was 1.0 percent down on that of the third quarter of 2015, 33.182 billion.

Marlboro volume was down by 0.8 percent to 28.152 billion’ while the volume of the company’s other premium brands was down by 4.8 percent to 1.684 billion. Its discount-brand volume was up by 0.2 percent to 3.028 billion.

In presenting its third-quarter and nine-month figures, Altria said that PM USA’s reported domestic cigarette shipment volume had fallen during the third quarter mainly due to the industry’s decline, partially offset by trade inventory movements. ‘When adjusted for trade inventory movements, PM USA estimates that its third-quarter domestic cigarettes shipment volume decreased by approximately three percent, in line with its estimate for total industry cigarette volumes,’ it said.

‘For the first nine months, PM USA’s reported domestic cigarettes shipment volume decreased 1.7 percent, primarily driven by the industry’s rate of decline, partially offset by calendar differences and trade inventory movements. When adjusted for trade inventory movements and calendar differences, PM USA estimates that its nine-month domestic cigarettes shipment volume decreased by approximately two percent, in line with the industry.’

PM USA’s domestic-market retail share during the three months to the end of September, at 51.4 percent, was increased by 0.1 of a percentage point on that of the third quarter of 2015.

Marlboro’s market share was increased by 0.1 of a percentage point to 44.0 percent, while the share of the company’s other premium brands was down by 0.1 of a percentage point to 2.7 percent, and the share of its discount brands was up by 0.1 of a percentage point to 4.7 percent.

Middleton’s cigar shipment volume during the first three months, at 361 million, was increased by 2.8 percent on that of the three months to the end of September 2015, as Black & Mild volume rose by 5.0 percent to 357 million, but other-cigar volume fell by 63.6 percent from 11 million to four million.

Middleton’s retail share during the third quarter, at 27.1 percent, was down by 1.3 percentage points on that of the three months to the end of September 2015, with Black & Mild’s share down 1.1 percentage points to 26.8 percent and the share of other brands down by 0.2 of a percentage point to 0.3 percent.

USSTC’s combined domestic smokeless products shipment volume during the third quarter, at 216.4 million cans and packs, was up by 5.6 percent on that of the three months to the end of September 2015.

Shipments of Copenhagen and Skoal taken together were up by 6.6 percent to 199.7 million packs and cans, while shipments of other brands were down by 5.1 percent to 16.7 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 six percent during the third quarter and by 5.5 percent for the first nine months. The company estimated that the smokeless products category volume grew approximately three percent during the past six months.

USSTC’s retail share of the domestic smokeless products market during the three months to the end of September, at 55.9 percent, was increased by 0.9 of a percentage point.

The share of Copenhagen and Skoal taken together increased by 1.2 percentage points to 52.6 percent, while the share of the companies’ other brands fell by 0.3 of a percentage point to 3.3 percent.

Altria’s 2016 third-quarter reported diluted earnings per share (EPS) were down by 28.2 percent to $0.56 on those of the third quarter of 2015, with comparisons affected by special items. Third quarter adjusted diluted EPS, which excludes the impact of special items, increased by 9.3 percent to $0.82.

“Altria delivered excellent performance in the third quarter and for the first nine months,” said Marty Barrington, Altria’s chairman, CEO and President. “Our core tobacco businesses delivered solid income growth on the strength of their leading premium brands.

“We also continued to simplify business processes, streamline infrastructure and invest in important growth initiatives.

“And with the completion of Anheuser-Busch InBev’s business combination with SABMiller, we maximized the value of our SABMiller investment and expanded and extended our share repurchase program.

“Going forward, we continue to have a position in the global brewing profit pool as a significant shareholder in the new combined company.”