Altria faces significant risks from pending and threatened litigation, including product liability, antitrust, and health-related lawsuits, potentially resulting in substantial damages and appeal bond costs. Evolving FDA regulations, including proposed product standards and enforcement actions, pose risks to product sales and market share. Illicit tobacco and e-vapor product sales, and consumer discretionary income pressures due to inflation, also threaten sales volume and profitability. Changes in tobacco leaf prices, availability, and quality, and supply chain disruptions, further add to the financial risks.
Financial Upside
Altria's 2028 goals include mid-single-digit adjusted EPS growth, progressive dividend increases, a 2.0x debt-to-EBITDA ratio, and maintaining leadership in the U.S. tobacco market. The "Optimize & Accelerate" initiative aims for $600 million in cost savings over five years, potentially boosting profitability. The ABI Transaction provided significant cash proceeds, which were used to fund share repurchases, potentially increasing earnings per share.
