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SEC Filings

8-K
ALTRIA GROUP, INC. filed this Form 8-K on 02/01/2018
Entire Document
 



In the fourth quarter, the smokeable products segment’s reported domestic cigarettes shipment volume declined by 8.9%, primarily driven by the industry’s rate of decline, trade inventory movements and retail share declines. After adjusting for trade inventory movements, PM USA’s domestic cigarettes shipment volume decreased by an estimated 6.5%. Total cigarette industry volumes declined by an estimated 4.5%.
For the full year, the smokeable products segment’s reported domestic cigarettes shipment volume decreased by 5.1%, primarily driven by the industry’s rate of decline, retail share declines and one fewer shipping day. When adjusted for calendar differences, PM USA’s domestic cigarettes shipment volume decreased by an estimated 5%. Total cigarette industry volumes declined by an estimated 4%.
The smokeable products segment’s reported cigars shipment volume increased by 7.9% in the fourth quarter and 9.9% for the full year. Table 3 summarizes smokeable products segment shipment volume performance.
Table 3 - Smokeable Products: Shipment Volume (sticks in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter
 
Full Year
 
2017
2016
Change
 
2017
2016
Change
Cigarettes:
 
 
 
 
 
 
 
Marlboro
22,667

24,851

(8.8
)%
 
99,974

105,297

(5.1
)%
Other premium
1,400

1,524

(8.1
)%
 
5,967

6,382

(6.5
)%
Discount
2,415

2,682

(10.0
)%
 
10,665

11,251

(5.2
)%
Total cigarettes
26,482

29,057

(8.9
)%
 
116,606

122,930

(5.1
)%
 
 
 
 
 
 
 
 
Cigars:
 
 
 
 
 
 
 
Black & Mild
381

351

8.5
 %
 
1,527

1,379

10.7
 %
Other
3

5

(40.0
)%
 
15

24

(37.5
)%
Total cigars
384

356

7.9
 %
 
1,542

1,403

9.9
 %
 
 
 
 
 
 
 
 
Total smokeable products
26,866

29,413

(8.7
)%
 
118,148

124,333

(5.0
)%
Note: Cigarettes volume includes units sold as well as promotional units, but excludes units sold for distribution to Puerto Rico, and units sold in U.S. Territories, to overseas military and by Philip Morris Duty Free Inc., none of which, individually or in the aggregate, is material to the smokeable products segment.
In the fourth quarter, Marlboro’s retail share declined by 0.7 share points to 43.0%, primarily driven by competitive activity and the continued effect of the cigarette excise tax increase in California. For the full year, Marlboro’s retail share declined by 0.4 share points to 43.3%. PM USA’s total retail share was 50.3% in the quarter and 50.7% for the full year, down 0.8 and 0.4 share points, respectively. Table 4 summarizes cigarette retail share results.

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