Revenue during the quarter grew 5.71 percent to $6,613 million from $6,256 million in the previous year period. Gross margin for the quarter expanded 181 basis points over the previous year period to 43.41 percent. Total expenses were 66.37 percent of quarterly revenues, down from 68.43 percent for the same period last year. This has led to an improvement of 206 basis points in operating margin to 33.63 percent.

Operating income for the quarter was $2,224 million, compared with $1,975 million in the previous year period.

"Altria delivered excellent second-quarter and first-half results, growing adjusted diluted EPS more than 13% with a very strong performance from the smokeable products segment and solid contributions across our other businesses. Further, our tobacco companies’ brands continued to strengthen their market leadership, with record retail share on Marlboro and more than 51% combined share on Copenhagen and Skoal year-to-date," said Marty Barrington, Altria's chairman, chief executive officer and president. "Based on this very strong first-half performance and our outlook for the second half, we are raising our full-year adjusted EPS guidance."

Operating cash flow improves significantly
Altria Group Inc. has generated cash of $1,247 million from operating activities during the first half, up 64.30 percent or $488 million, when compared with the last year period.

Cash flow from investing activities was $87 million for the first half, down 14.71 percent or $15 million, when compared with the last year period.

The company has spent $3,532 million cash to carry out financing activities during the first six months as against cash outgo of $2,843 million in the last year period.

Cash and cash equivalents stood at $1,123 million as on Jun. 30, 2015, down 5.87 percent or $70 million from $1,193 million on Jun. 30, 2014.

Working capital remains negative
Working capital of Altria Group Inc. was negative $1,628 million on Jun. 30, 2015 compared with negative $571 million on Jun. 30, 2014. Current ratio was at 0.74 as on Jun. 30, 2015, down from 0.89 on Jun. 30, 2014.

Cash conversion cycle (CCC) has decreased to 21 days for the quarter from 41 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 23 days for the quarter compared with 48 days for the previous year period. At the same time, days payable outstanding went down to 4 days for the quarter from 8 for the same period last year.

Debt remains almost stable
Altria Group Inc. has recorded a decline in total debt over the last one year. It stood at $13,920 million as on Jun. 30, 2015, down 0.52 percent or $73 million from $13,993 million on Jun. 30, 2014. Short-term debt stood at $1,003 million as on Jun. 30, 2015. Total debt was 43.68 percent of total assets as on Jun. 30, 2015, compared with 42.04 percent on Jun. 30, 2014. Debt to equity ratio was at 5.02 as on Jun. 30, 2015, up from 11.39 as on Jun. 30, 2014.