Altria Group, Inc. (MO) has reported a 724.06 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $10,276 million, or $5.27 a share in the quarter, compared with $1,247 million, or $0.64 a share for the same period last year. On an adjusted basis, net profit for the quarter was almost stable at $1,317 million, or $0.68 a share, when compared with the last year period.
Revenue during the quarter went down marginally by 1.04 percent to $6,252 million from $6,318 million in the previous year period. Gross margin for the quarter expanded 215 basis points over the previous year period to 45.23 percent. Total expenses were 68.12 percent of quarterly revenues, down from 68.90 percent for the same period last year. This has led to an improvement of 78 basis points in operating margin to 31.88 percent.
Operating income for the quarter was $1,993 million, compared with $1,965 million in the previous year period.
"Altria had another outstanding year," said Marty Barrington, Altria's chairman, chief executive officer and president. "We grew our earnings in line with our long-term objectives while returning a large amount of cash to shareholders, improving our balance sheet and strengthening our organizational capability, thus positioning Altria to continue to deliver on our long-term financial goals. In 2016, Altria’s total return to shareholders of 20.5% outpaced both the S&P 500 and the S&P Food, Beverage and Tobacco Index, marking the fourth consecutive year that total shareholder return exceeded 20%."
For financial year 2017, Altria Group, Inc. projects diluted earnings per share to be in the range of $3.26 to $3.32 on adjusted basis.
Debt moves up
Altria Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $13,881 million as on Dec. 31, 2016, up 8.05 percent or $1,034 million from $12,847 million on Dec. 31, 2015. Total debt was 30.22 percent of total assets as on Dec. 31, 2016, compared with 39.49 percent on Dec. 31, 2015. Debt to equity ratio was at 1.09 as on Dec. 31, 2016, down from 4.47 as on Dec. 31, 2015.
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