Market Overview

Altria Participates in the Barclays Global Consumer Staples Conference; Reaffirms Full-Year Earnings Guidance


Altria Group, Inc. (Altria) (NYSE:MO) is participating today in the
Barclays Global Consumer Staples Conference in Boston, Massachusetts.
Billy Gifford, Altria's Vice Chairman and Chief Financial Officer, and
Murray Garnick, Executive Vice President and General Counsel, will
discuss the company's business fundamentals and the regulatory

This event is being webcast live at in a listen-only mode,
beginning at approximately 9:00 a.m. Eastern Time. A replay of the audio
webcast will be available at and via the Altria Investor app.

2018 Full-Year Guidance

Altria reaffirms its guidance for 2018 full-year adjusted diluted
earnings per share (EPS) to be in a range of $3.94 to $4.03. This range
represents a growth rate of 16% to 19% from an adjusted diluted EPS base
of $3.39 in 2017 as shown in Schedule 1. This guidance range excludes
the special items for the first half of 2018 shown in Schedule 1 and an
additional $0.05 of tax expense resulting from the Tax Cuts and Jobs Act
expected in the second half of 2018. This tax expense is related to a
tax basis adjustment to Altria's AB InBev investment. Altria's 2018
guidance reflects investments in focus areas for long-term growth,
including innovative product development and launches, regulatory
science, brand equity, retail fixtures and future retail concepts.

Altria's full-year adjusted diluted EPS guidance excludes the
impact of certain income and expense items that management believes are
not part of underlying operations.
These items may include, for
example, loss on early extinguishment of debt, restructuring charges,
gain/loss on AB InBev/SABMiller plc (SABMiller) business combination, AB
InBev special items, certain tax items, charges associated with tobacco
and health litigation items, and resolutions of certain
non-participating manufacturer (NPM) adjustment disputes under the
Master Settlement Agreement (such dispute resolutions are referred to as
NPM Adjustment Items).

Altria's management cannot estimate on a forward-looking basis the
impact of certain income and expense items, including those items noted
in the preceding paragraph, on its reported diluted EPS because these
items, which could be significant, may be infrequent, are difficult to
predict and may be highly variable.
As a result, Altria does not
provide a corresponding U.S. generally accepted accounting principles
(GAAP) measure for, or reconciliation to, its adjusted diluted EPS

The factors described in the "Forward-Looking and Cautionary Statements"
section of this release represent continuing risks to Altria's forecast.

Altria's Profile

Altria's wholly-owned subsidiaries include Philip Morris USA Inc., U.S.
Smokeless Tobacco Company LLC, John Middleton Co., Sherman Group
Holdings, LLC and its subsidiaries, Nu Mark LLC, Ste. Michelle Wine
Estates Ltd. (Ste. Michelle) and Philip Morris Capital Corporation.
Altria holds an equity investment in Anheuser-Busch InBev SA/NV (AB

The brand portfolios of Altria's tobacco operating companies include Marlboro®,
Black & Mild®, Copenhagen®,
Skoal®, VERVE®, MarkTen®
and Green Smoke®. Ste. Michelle produces
and markets premium wines sold under various labels, including Chateau
Ste. Michelle
®, Columbia Crest®,
14 Hands® and Stag's Leap Wine Cellars,
and it imports and markets Antinori®, Champagne
Nicolas Feuillatte
, Torres®
and Villa Maria Estate products in
the United States. Trademarks and service marks related to Altria
referenced in this release are the property of Altria or its
subsidiaries or are used with permission. More information about Altria
is available at and on the Altria Investor app.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other
forward-looking statements that involve a number of risks and
uncertainties and are made pursuant to the Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1995.

Important factors that may cause actual results and outcomes to differ
materially from those contained in the projections and forward-looking
statements included in this press release are described in Altria's
publicly filed reports, including its Annual Report on Form 10-K for the
year ended December 31, 2017 and its Quarterly Report on Form 10-Q for
the period ended June 30, 2018. These factors include the following:
significant competition; changes in adult consumer preferences and
demand for Altria's operating companies' products; fluctuations in raw
material availability, quality and price; reliance on key facilities and
suppliers; reliance on critical information systems, many of which are
managed by third-party service providers; fluctuations in levels of
customer inventories; the effects of global, national and local economic
and market conditions; changes to income tax laws; federal, state and
local legislative activity, including actual and potential federal and
state excise tax increases; increasing marketing and regulatory
restrictions; the effects of price increases related to excise tax
increases and concluded tobacco litigation settlements, consumption
rates and consumer preferences within price segments; health concerns
relating to the use of tobacco products and exposure to environmental
tobacco smoke; privately imposed smoking restrictions; and, from time to
time, governmental investigations.

Furthermore, the results of Altria's tobacco businesses are dependent
upon their continued ability to promote brand equity successfully; to
anticipate and respond to evolving adult consumer preferences; to
develop, manufacture, market and distribute products that appeal to
adult tobacco consumers (including, where appropriate, through
arrangements with, and investments in, third parties); to improve
productivity; and to protect or enhance margins through cost savings and
price increases.

Altria and its tobacco businesses are also subject to federal, state and
local government regulation, including by the U.S. Food and Drug
Administration. Altria and its subsidiaries continue to be subject to
litigation, including risks associated with adverse jury and judicial
determinations, courts reaching conclusions at variance with the
companies' understanding of applicable law, bonding requirements in the
limited number of jurisdictions that do not limit the dollar amount of
appeal bonds and certain challenges to bond cap statutes.

In addition, the factors related to Altria's investment in AB InBev
include the following: the risk that Altria's equity securities in AB
InBev are subject to restrictions on transfer until October 10, 2021;
the risk that Altria's reported earnings from and carrying value of its
equity investment in AB InBev and the dividends paid by AB InBev on
shares owned by Altria may be adversely affected by unfavorable foreign
currency exchange rates and other factors, including the risks
encountered by AB InBev in its business; the risk that the tax treatment
of Altria's transaction consideration from the AB InBev/SABMiller
business combination and the accounting treatment of its equity
investment are not guaranteed; and the risk that the tax treatment of
Altria's investment in AB InBev may not be as favorable as Altria

Altria cautions that the foregoing list of important factors is not
complete and does not undertake to update any forward-looking statements
that it may make except as required by applicable law. All subsequent
written and oral forward-looking statements attributable to Altria or
any person acting on its behalf are expressly qualified in their
entirety by the cautionary statements referenced above.

Schedule 1
and Subsidiaries
Reconciliation of GAAP and non-GAAP Measures
(dollars in millions, except per share data)
Reconciliation of Altria's First Six Months of 2018 Adjusted



for Income





  Diluted EPS
For the six months ended June 30, 2018
2018 Reported $ 5,023 $ 1,251 $ 3,772 $ 3,770 $ 1.99
NPM Adjustment Items (145 ) (36 ) (109 ) (109 ) (0.06 )
Tobacco and health litigation items 98 25 73 73 0.04
AB InBev special items (189 ) (40 ) (149 ) (149 ) (0.07 )

Asset impairment, exit and implementation costs

9 2 7 7

Loss on AB InBev/SABMiller business combination

33 7 26 26 0.01
Tax items     (95 )   95     95     0.05  
2018 Adjusted for Special Items $ 4,829     $ 1,114     $ 3,715     $ 3,713     $ 1.96  
Reconciliation of Altria's Full-Year 2017 Adjusted Results



for Income





  Diluted EPS
For the year ended December 31, 2017
2017 Reported $ 9,828 $ (399 ) $ 10,227 $ 10,222 $ 5.31
NPM Adjustment Items 4 2 2 2
Tobacco and health litigation items 80 30 50 50 0.03
AB InBev special items 160 55 105 105 0.05

Asset impairment, exit, implementation and acquisition-related

89 34 55 55 0.03

Gain on AB InBev/SABMiller business combination

(445 ) (156 ) (289 ) (289 ) (0.15 )

Settlement charge for lump sum pension payments

81 32 49 49 0.03
Tax items     3,674     (3,674 )   (3,674 )   (1.91 )
2017 Adjusted for Special Items $ 9,797     $ 3,272     $ 6,525     $ 6,520     $ 3.39  

Altria reports its financial results in accordance with GAAP. Altria's
management reviews certain financial results, including diluted EPS, on
an adjusted basis, which excludes certain income and expense items,
including those items noted under "2018 Full-Year Guidance." Altria's
management does not view any of these special items to be part of
Altria's underlying results as they may be highly variable, may be
infrequent, are difficult to predict and can distort underlying business
trends and results. Altria's management believes that adjusted financial
measures provide useful additional insight into underlying business
trends and results and provide a more meaningful comparison of
year-over-year results. Altria's management uses adjusted financial
measures for planning, forecasting and evaluating business and financial
performance, including allocating resources and evaluating results
relative to employee compensation targets. These adjusted financial
measures are not consistent with GAAP and may not be calculated the same
as similarly titled measures used by other companies. These adjusted
financial measures should thus be considered as supplemental in nature
and not considered in isolation or as a substitute for the related
financial information prepared in accordance with GAAP.

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