Reported Diluted EPS Grew 7.8% to $1.38
Adjusted Diluted EPS Grew 8.7% to $1.50; and by 23.2% excluding
currency
Regulatory News:
Philip Morris International Inc. (PMI) (NYSE: PM) today
announces its 2024 first-quarter results1.
"The strength of our first-quarter results with excellent
top-line growth and significant margin expansion gives us the
confidence to raise our 2024 currency-neutral guidance,” said Jacek
Olczak, Chief Executive Officer.
"Strong smoke-free momentum continues with rapid underlying
volume progression and accelerating organic net revenue and gross
profit growth, fueled by the operating leverage of IQOS and the
best-in-class economics of ZYN.”
“We are executing efficiently and effectively in a dynamic
operating environment of geopolitical and economic tensions that
accentuate currency volatility. We are doing our utmost to mitigate
these challenges and deliver robust growth and value creation.”
Highlights
- Smoke-free business (SFB): The smoke-free business
accounted for 39% of our total net revenues. The path to achieving
our ambition of becoming a smoke-free company is shown by the EA,
AU & PMI DF region, where SFB accounted for almost two-thirds
of revenue, led by Japan and Korea. Our SFB continues to deliver
superior top-line growth, with net revenues increasing by 21.1%
(24.8% organically) as well as a 31.8% (37.5% organic) increase in
gross profit.
- Inhalable smoke-free products (SFP): IQOS continues to
strengthen its position as the second largest nicotine ‘brand’ in
markets where present, including the #1 position in 11 markets. HTU
adjusted in-market sales (IMS) volume, which excludes the net
impact of estimated distributor and wholesaler inventory movements,
was up by an estimated 12.5%.
- In Europe, IQOS HTU market share exceeded 10% for the first
time with adjusted IMS growth of 9.4%, which was influenced, as
expected, by the impact from the EU characterizing flavor ban.
- In Japan, IQOS HTU market share increased by more than 3
percentage points to over 29%, with adjusted IMS growth of 13.3%.
Notably, the heat-not-burn category surpassed combustible
cigarettes in Tokyo, a demonstration of the vast potential of IQOS
around the world. To celebrate the 10-year anniversary of the IQOS
launch in Japan, we introduced IQOS ILUMA i, our most innovative
offering to-date, with very positive initial consumer
feedback.
In the vaping category, our focused strategy
for VEEV is showing promising early results on both consumer
traction and profitability.
- Oral SFP2: Shipment volume increased by 40.0% in cans
(35.8% in pouches or pouch equivalents), fueled by ZYN nicotine
pouch growth in the U.S., where shipment volume reached 131.6
million cans, representing growth of 79.7% versus prior year. Our
share of the category in the U.S. increased for the fourth
consecutive quarter to over 74%, up 1.3 percentage points
sequentially.
- Combustibles: Net revenues grew by 3.5% (organically by
3.7%), fueled by another quarter of strong pricing across markets.
Our category share increased by 0.3 percentage points with Marlboro
gaining 0.4 percentage points.
- Dividend: Declared regular quarterly dividend of $1.30
per share, or an annualized rate of $5.20 per share.
_______________________ 1 Explanation of PMI's use of non-GAAP
measures cited in this document and reconciliations to the most
directly comparable U.S. GAAP measures can be found in the
“Non-GAAP Measures, Glossary and Explanatory Notes” section of this
release, in Exhibit 99.2 to the company's Form 8-K dated April 23,
2024, and at www.pmi.com/2024Q1earnings. 2 Oral smoke-free product
volume excludes snuff, snuff leaf and U.S. chew
Operating Review
Total
HTU
Oral SFP
Cigarettes
Shipment Volume (units bn)
180.5
33.1
4.2
143.2
vs. Q1 2023
3.6%
20.9%
35.8%
(0.4)%
PMI
Smoke-Free
Business
Combustibles
Net Revenues ($ bn)
$8.8
$3.4
$5.4
reported vs. Q1 2023
9.7%
21.1%
3.5%
organic vs. Q1 2023
11.0%
24.8%
3.7%
Gross Profit ($ bn)
$5.6
$2.1
$3.5
reported vs. Q1 2023
12.4%
31.8%
3.0%
organic vs. Q1 2023
13.7%
37.5%
2.3%
Operating Income ($ bn)
$3.0
reported vs. Q1 2023
11.5%
organic vs. Q1 2023
22.2%
Reported Diluted
EPS
Adjusting
Items1
Adjusted Diluted
EPS
Currency Impact
Adjusted Diluted
EPS ex. Currency
EPS
$1.38
$(0.12)
$1.50
$(0.20)
$1.70
vs. Q1 2023
7.8%
8.7%
23.2%
(1) For a list of adjusting items refer to
page 8
The $0.20 unfavorable currency variance in the first quarter
includes a $0.09 impact from the devaluation of the Egyptian pound
(EGP), including a transactional impact of approximately $0.06
primarily related to the balance sheet remeasurement of foreign
currency payables. Our proactive pricing decisions and accelerated
cost initiatives allowed us to mitigate this incremental currency
headwind in the quarter.
Full-Year Forecast
Full-Year
2024
Forecast
2023
Growth
Reported Diluted EPS
$5.70
-
$5.82
$ 5.02
Adjustments:
Asset impairment and exit costs(1)
0.09
0.06
Termination of distribution arrangement in
the Middle East
—
0.04
Impairment of goodwill and other
intangibles
0.01
0.44
Amortization of intangibles(2)
0.43
0.25
Charges related to the war in Ukraine
—
0.03
Swedish Match AB acquisition accounting
related items
—
0.01
Income tax impact associated with Swedish
Match AB financing
0.07
(0.11)
South Korea indirect tax charge
—
0.11
Termination of agreement with Foundation
for a Smoke-Free World
—
0.07
Fair value adjustment for equity security
investments
(0.08)
(0.02)
Tax items
(0.03)
0.11
Total Adjustments
0.49
0.99
Adjusted Diluted EPS
$6.19
-
$6.31
$ 6.01
Less: Currency
(0.36)
Adjusted Diluted EPS, excluding
currency
$6.55
-
$6.67
$ 6.01
9.0%
-
11.0%
(1) See Impairment and Exit Costs section
for details
(2) See forecast assumptions for
details
Reported diluted EPS is forecast to be in a range of $5.70 to
$5.82, at prevailing exchange rates, versus reported diluted EPS of
$5.02 in 2023. Excluding a total 2024 adjustment of $0.49 per share
and an adverse currency impact of $0.36, at prevailing exchange
rates, this forecast represents a projected increase of 9.0% to
11.0% versus adjusted diluted EPS of $6.01 in 2023, as outlined in
the above table.
2024 Full-Year Forecast Assumptions
This forecast assumes:
- An estimated total international industry volume decline for
cigarettes and HTUs, excluding China and the U.S., of -2% to
flat;
- Total cigarette, HTU and oral smoke-free product shipment
volume growth for PMI of flat to +1% driven by smoke-free
products;
- 14% to 16% adjusted in-market sales volume growth for HTUs,
including an approximate 2 billion units adverse impact for the
full year from consumer adjustment to the EU characterizing flavor
ban, resulting in HTU shipment volumes of more than 140 billion
units;
- Nicotine pouch shipment volume in the U.S. of approximately 560
million cans;
- Net revenue growth of 7% to 8.5% on an organic basis;
- Organic operating income growth of 10% to 12%;
- An acceleration in organic smoke-free net revenue and gross
profit growth compared to 2023;
- Broadly unchanged net revenue and adjusted operating loss in
Wellness and Healthcare segment;
- No earnings impact from any potential favorable court ruling
related to the legality of a supplemental tax surcharge on HTUs in
Germany, which went into effect in 2022 (see PMI's first-quarter
2023 press release from April 20, 2023, for additional
detail).
- Full-year amortization of acquired intangibles of $0.43 per
share, which includes an estimate of amortization of IQOS
commercialization rights in the U.S. following the closing of the
agreement to end our commercial relationship with Altria Group,
Inc. covering IQOS in the U.S. effective May 1, 2024. We currently
estimate that the increase in amortization expense in 2024, as a
result of this transaction, will be approximately $370 million on a
pre-tax basis for the remaining 8 months of the year. For full year
2025 through 2028, we currently estimate an annual impact of
approximately $555 million on a pre-tax basis;
- Net financing costs of approximately $1.3 to $1.4 billion;
- An effective tax rate, excluding discrete tax events, of
approximately 21% to 22%;
- Operating cash flow of $10 to $11 billion at prevailing
exchange rates, subject to year-end working capital
requirements;
- Capital expenditures of approximately $1.2 billion, partly
reflecting investments in ZYN capacity in the U.S.;
- Net debt to adjusted EBITDA ratio improvement of 0.3x to 0.5x
at prevailing exchange rates as we continue to target a ratio of
around 2x by the end of 2026;
- No share repurchases in 2024; and
- A strong first-half performance, with second quarter adjusted
diluted EPS of $1.50 to $1.55, including an estimated adverse
currency impact of 14 cents at prevailing exchange rates.
Factors described in the Forward-Looking and Cautionary
Statements section of this release represent continuing risks to
these projections.
New Segment Structure
Following the combination and the progress in 2023 to integrate
the Swedish Match business into the existing PMI regional segment
structure, PMI updated its segment reporting to include Swedish
Match results in the four existing geographical regions. PMI's 2024
first-quarter financial results reflect the new segment structure.
Historical financial information for the 2021 to 2023 period
reflecting the above mentioned change was provided in a Form 8-K
dated February 27, 2024.
Impairment and Exit
Costs
On February 2, 2024, PMI announced that it reached a global
settlement with British American Tobacco p.l.c. The settlement led
to the rescission of International Trade Commission orders
prohibiting the importation of IQOS products to the U.S. As a
result, PMI has restructured the sourcing of IQOS products to be
commercialized in the U.S., and recorded pre-tax asset impairment
and exit costs of $121 million related to this restructuring during
the first quarter of 2024.
In the first quarter of 2024, PMI ceased its operations in
Venezuela and as a result, recorded pre-tax asset impairment and
exit costs of $47 million.
Conference Call
A conference call hosted by Emmanuel Babeau, Chief Financial
Officer and Jennifer Motles, Chief Sustainability Officer, will be
webcast at 9:00 a.m., Eastern Time, on April 23, 2024. Access the
webcast at www.pmi.com/2024Q1earnings.
Financial Review
TOTAL MARKET, CONSOLIDATED SHIPMENT VOLUME
& MARKET SHARE
Total Market Volume
First-quarter estimated international industry volume (excluding
China and the U.S.) for cigarettes and HTUs increased by 0.3%,
reflecting increases in the SSEA, CIS & MEA Region and the EA,
AU & PMI DF Region, partly offset by a decrease in the Americas
Region and the Europe Region, as described in the Regional
sections.
Consolidated Shipment Volume
PMI Cigarettes and HTUs
First-Quarter
(million units)
2024
2023
Change
Cigarettes
143,191
143,708
(0.4)%
Heated Tobacco Units
33,134
27,396
20.9%
Total Cigarettes and HTUs
176,325
171,104
3.1%
PMI Oral SFP(1)
First-Quarter
(million cans)
2024
2023
Change
Nicotine Pouches
145.7
81.3
79.3%
Snus
61.4
55.6
10.5%
Moist Snuff
34.4
35.2
(2.3)%
Other Oral SFP
1.0
1.3
(16.6)%
Total Oral SFP
242.6
173.3
40.0%
(1) Excluding snuff, snuff leaf and U.S.
chew
Note: Sum may not foot due to
roundings.
PMI's total cigarette and HTU shipment volume increased by 3.1%,
reflecting a 20.9% increase in HTU shipments across all regions,
partly offset by a 0.4% decline in cigarette shipments, with
declines across all regions except the SSEA, CIS & MEA Region.
Cigarette shipment volume for Marlboro increased by 1.7% to 56.9
billion units.
PMI’s total oral product shipment volume in cans increased by
40.0%, primarily reflecting growth in nicotine pouches (primarily
in the U.S.) and snus (mainly in Scandinavia).
Adjusted in-market sales for HTUs increased by 12.5%, including
growth in Japan of 13.3% and Europe of 9.4%. A net favorable impact
of estimated distributor inventory movements for HTUs shipments was
driven most significantly by additional shipments to Japan in light
of disruption to Red Sea shipping routes.
International Share of Market - Cigarettes and HTUs
First-Quarter
2024
2023
Change (pp)
Total International Market
Share(1)
28.0%
27.2%
0.8
Cigarettes
22.9%
22.7%
0.2
HTU
5.2%
4.5%
0.7
Cigarette over Cigarette Market
Share(2)
24.5%
24.2%
0.3
(1) Defined as PMI's cigarette and heated
tobacco unit in-market sales volume as a percentage of total
industry cigarette and heated tobacco unit sales volume, excluding
China and the U.S., including cigarillos in Japan
(2) Defined as PMI's cigarette in-market
sales volume as a percentage of total industry cigarette sales
volume, excluding China and the U.S., including cigarillos in
Japan
Note: Sum of share of market by product
categories might not foot to total due to roundings.
CONSOLIDATED FINANCIAL SUMMARY
Financial Summary
-
Quarters Ended
March 31,
Change
Fav./(Unfav.)
Variance
Fav./(Unfav.)
2024
2023
Total
Excl. Curr. &
Acquis.
Total
Cur- rency
Acqui- sitions
Price
Vol/ Mix
Cost/ Other
(in millions)
Net Revenues
$
8,793
$
8,019
9.7
%
12.1
%
774
(194
)
—
449
464
55
Termination of distribution arrangement in
the Middle East
—
(80
)
+100
%
+100
%
80
—
—
—
—
80
Adjusted Net Revenues
$
8,793
$
8,099
8.6
%
11.0
%
694
(194
)
—
449
464
(25
)
Net Revenues
$
8,793
$
8,019
9.7
%
12.1
%
774
(194
)
—
449
464
55
Cost of Sales(1)
(3,195
)
(3,038
)
(5.2
)%
(5.4
)%
(157
)
8
—
—
(169
)
4
Marketing, Administration and Research
Costs(2)
(2,553
)
(2,250
)
(13.5
)%
(7.2
)%
(303
)
(142
)
—
—
—
(161
)
Operating Income
$
3,045
$
2,731
11.5
%
23.5
%
314
(328
)
—
449
295
(102
)
Asset Impairment & Exit Costs
(168
)
(109
)
(54.1
)%
(54.1
)%
(59
)
—
—
—
—
(59
)
Termination of distribution arrangement in
the Middle East(3)
—
(80
)
+100
%
+100
%
80
—
—
—
—
80
Impairment of Other Intangibles
(27
)
—
—
%
—
%
(27
)
—
—
—
—
(27
)
Amortization of Intangibles
(120
)
(81
)
(48.1
)%
(48.1
)%
(39
)
—
—
—
—
(39
)
Swedish Match AB acquisition accounting
related items
—
(18
)
+100
%
+100
%
18
—
—
—
—
18
Adjusted Operating Income
$
3,360
$
3,019
11.3
%
22.2
%
341
(328
)
—
449
295
(75
)
Adjusted Operating Income
Margin
38.2
%
37.3
%
0.9
pp
3.7
pp
(1) Includes $16 million in 2024 and $40
million in 2023 related to the special items below.
(2) Includes $299 million in 2024 and $168
million in 2023 related to the special items below.
(3) Included in net revenues above.
Adjusted net revenues increased by 11.0% on an organic basis,
mainly reflecting: a favorable pricing variance, primarily driven
by higher combustible tobacco pricing; and favorable volume/mix,
mainly driven by higher HTU and ZYN volume, partially offset by
lower cigarette volume.
Adjusted operating income increased by 22.2% on an organic
basis, mainly reflecting: the favorable pricing variance; and
favorable volume/mix, mainly driven by higher HTU and ZYN volume,
partly offset by lower cigarette volume and unfavorable cigarette
mix; partially offset by higher marketing, administration and
research costs (primarily due to inflationary impacts, notably
related to wages) as well as higher manufacturing costs.
First-Quarter
2024
2023
% Change
Reported Diluted EPS
$
1.38
$
1.28
7.8
%
Asset impairment and exit costs
0.09
0.06
Termination of distribution arrangement in
the Middle East
—
0.04
Impairment of other intangibles
0.01
—
Amortization of intangibles
0.06
0.04
Swedish Match AB acquisition accounting
related items
—
0.01
Income tax impact associated with Swedish
Match AB financing
0.07
(0.05
)
Fair value adjustment for equity security
investments
(0.08
)
—
Tax items
(0.03
)
—
Adjusted Diluted EPS
$
1.50
$
1.38
8.7
%
Less: Currency
(0.20
)
Adjusted Diluted EPS, excluding
Currency
$
1.70
$
1.38
23.2
%
EUROPE REGION
Total Market, PMI Shipment & Market Share
Commentaries
The estimated total market for cigarettes and HTUs in the Region
decreased by 0.4% to 124.5 billion units, reflecting a 2.1% decline
for cigarettes, largely offset by an increase for HTUs. The
decrease in the estimated total market was predominantly due to
France (down by 16.1%) and the UK (down by 11.1%), largely offset
by Poland (up by 4.7%) and Bulgaria (up by 9.7%).
Europe Key Data
First-Quarter
Change
2024
2023
% / pp
PMI Shipment Volume (million
units)
Cigarettes
37,089
39,157
(5.3
)%
Heated Tobacco Units
11,340
10,099
12.3
%
Total Europe
48,429
49,256
(1.7
)%
PMI Market Share
Cigarettes
29.9
%
30.3
%
(0.4
)
Heated Tobacco Units
10.1
%
9.0
%
1.1
Total Europe
40.0
%
39.3
%
0.7
Note: Sum may not foot due to
roundings.
PMI's total cigarette and HTU shipment volume in the Region
decreased by 1.7% to 48.4 billion units. Total cigarette and HTU
shipment volume decreased notably in France (down by 31.7%) and
Italy (down by 10.4%) driven by cigarettes, and increased notably
in Poland (up by 10.0%) and Germany (up by 4.8%).
PMI's estimated HTU adjusted in-market sales volume in the
Region increased by 9.4% in the quarter, reflecting continued
growth momentum for IQOS, partly offset by the impact from the EU
characterizing flavor ban.
PMI's HTU share of the total cigarette and HTU market in the
Region increased by 1.1 points, or by 0.9 points on an adjusted
basis.
Europe Oral SFP
First-Quarter
Change
2024
2023
%
PMI Shipment Volume (million
cans)
Nicotine Pouches
12.3
7.9
55.9%
Snus
60.7
54.4
11.6%
Other Oral SFP(1)
1.0
1.3
(16.6)%
Total Europe
74.0
63.5
16.5%
(1) Includes chew bags and tobacco
bits
Note: Sum may not foot due to
roundings.
Oral SFP shipments increased by 16.5% with growth of snus (up by
11.6%) and nicotine pouches (up by 55.9%), benefiting from timing
of shipments and underlying category growth in the Nordics.
Financial Summary
Financial Summary
-
Quarters Ended
March 31,
Change
Fav./(Unfav.)
Variance
Fav./(Unfav.)
2024
2023
Total
Excl. Curr. &
Acquis.
Total
Cur- rency
Acqui- sitions
Price
Vol/ Mix
Cost/ Other
(in millions)
Net Revenues
$
3,365
$
3,068
9.7
%
7.1
%
297
78
—
163
56
—
Operating Income
$
1,456
$
1,215
19.8
%
18.7
%
241
14
—
163
64
—
Adjustments (1)
(41
)
(75
)
45.8
%
45.8
%
34
—
—
—
—
34
Adjusted Operating Income
$
1,496
$
1,290
16.0
%
14.9
%
206
14
—
163
64
(34
)
Adjusted Operating Income
Margin
44.5
%
42.0
%
2.5
pp
3.1
pp
(1) See Schedule 8 in Exhibit 99.2 to the
Form 8-K dated April 23, 2024, for additional detail.
Net revenues increased by 7.1% on an organic basis, reflecting:
a favorable pricing variance, mainly driven by higher combustible
tobacco pricing; and favorable volume/mix, primarily driven by
higher HTU volume, partly offset by lower cigarettes volume.
Adjusted operating income increased by 14.9% on an organic
basis, reflecting: a favorable pricing variance, mainly driven by
higher combustible tobacco pricing; and favorable volume/mix,
primarily driven by higher HTU volume and favorable HTU mix, partly
offset by lower cigarette volume, as well as unfavorable cigarette
mix; partly offset by higher manufacturing costs, including the
impact of the EU single-use plastics directive.
SSEA, CIS & MEA REGION
Total Market, PMI Shipment & Market Share
Commentaries
The estimated total market for cigarettes and HTUs in the Region
increased by approximately 1% to 371.0 billion units. The increase
in the estimated total market was mainly due to Indonesia (up by
6.4%) and Turkey (up by 14.8%), partly offset by Egypt (down by
14.2%) and Pakistan (down by 20.7%).
PMI Shipment Volume
First-Quarter
(million units)
2024
2023
Change
Cigarettes
80,191
76,531
4.8%
Heated Tobacco Units
6,078
5,447
11.6%
Total SSEA, CIS & MEA
86,269
81,978
5.2%
PMI's total cigarette and HTU shipment volume in the Region
increased by 5.2% to 86.3 billion units, mainly driven by Turkey
(up by 25.0%), partly offset by the Philippines (down by 18.1%).
PMI's estimated HTU adjusted in-market sales volume increased by
14.6%, with 11.6% HTU shipment volume growth.
Financial Summary
Financial Summary
-
Quarters Ended
March 31,
Change
Fav./(Unfav.)
Variance
Fav./(Unfav.)
2024
2023
Total
Excl. Curr. &
Acquis.
Total
Cur- rency
Acqui- sitions
Price
Vol/ Mix
Cost/ Other
(in millions)
Net Revenues
$
2,658
$
2,477
7.3
%
15.1
%
181
(194
)
—
155
144
76
Adjustment (1)
—
(80
)
+100
%
+100
%
80
—
—
—
—
80
Adjusted Net Revenues
$
2,658
$
2,557
3.9
%
11.5
%
101
(194
)
—
155
144
(4
)
Net Revenues
$
2,658
$
2,477
7.3
%
15.1
%
181
(194
)
—
155
144
76
Operating Income
$
772
$
734
5.2
%
38.0
%
38
(241
)
—
155
46
78
Adjustments (2)
(5
)
(117
)
95.7
%
95.7
%
112
—
—
—
—
112
Adjusted Operating Income
$
777
$
851
(8.7
)%
19.6
%
(74
)
(241
)
—
155
46
(34
)
Adjusted Operating Income
Margin
29.2
%
33.3
%
(4.1
)pp
2.4
pp
(1) Distribution arrangement termination
(Middle East).
(2) See Schedule 8 in Exhibit 99.2 to the
Form 8-K dated April 23, 2024, for additional detail.
Adjusted net revenues increased by 11.5% on an organic basis,
primarily reflecting: a favorable pricing variance, mainly driven
by higher combustible tobacco pricing; and favorable volume/mix,
driven by higher HTU and cigarettes volume as well as favorable HTU
and cigarettes mix.
Adjusted operating income increased by 19.6% on an organic
basis, primarily reflecting: a favorable pricing variance, mainly
driven by higher combustible tobacco pricing; and favorable
volume/mix, driven by higher HTU volume, favorable HTU mix and
higher cigarette volume, partly offset by unfavorable cigarette
mix; partly offset by higher manufacturing costs (primarily due to
inflationary impacts).
EA, AU AND PMI DF REGION
Total Market, PMI Shipment & Market Share
Commentaries
The estimated total market for cigarettes and HTUs in the
Region, excluding China, increased by around 1% to 75.9 billion
units, with growth for HTUs partly offset by a decline for
cigarettes. The increase in the estimated total market was mainly
driven by International Duty Free (up by 17.6%) and Taiwan (up by
15.0%).
PMI Shipment Volume
First-Quarter
(million units)
2024
2023
Change
Cigarettes
11,568
13,110
(11.8)%
Heated Tobacco Units
15,599
11,748
32.8%
Total EA, AU & PMI DF
27,167
24,858
9.3%
PMI's total cigarette and HTU shipment volume in the Region
increased by 9.3% to 27.2 billion units, driven by Japan (up by
21.1%).
PMI's estimated HTU adjusted in-market sales volume in the
Region increased by 14.6% in the quarter, including growth in Japan
of 13.3%.
Financial Summary
Financial Summary
-
Quarters Ended
March 31,
Change
Fav./(Unfav.)
Variance
Fav./(Unfav.)
2024
2023
Total
Excl. Curr. &
Acquis.
Total
Cur- rency
Acqui- sitions
Price
Vol/ Mix
Cost/ Other
(in millions)
Net Revenues
$
1,684
$
1,520
10.8
%
18.0
%
164
(109
)
—
130
143
—
Operating Income
$
763
$
637
19.8
%
39.4
%
126
(125
)
—
130
72
49
Adjustments (1)
(1
)
(20
)
96.2
%
96.2
%
19
—
—
—
—
19
Adjusted Operating Income
$
764
$
657
16.3
%
35.3
%
107
(125
)
—
130
72
30
Adjusted Operating Income
Margin
45.4
%
43.2
%
2.2
pp
6.4
pp
(1) See Schedule 8 in Exhibit 99.2 to the
Form 8-K dated April 23, 2024, for additional detail.
Net revenues increased by 18.0% on an organic basis, reflecting:
favorable pricing variance and favorable volume/mix, mainly driven
by higher HTU volume.
Adjusted operating income increased by 35.3% on an organic basis
driven by the same factors as for net revenues as well as lower
shipping costs.
AMERICAS REGION
Total Market, PMI Shipment & Market Share
Commentaries
The estimated total market for cigarettes and HTUs in the
Region, excluding the U.S., decreased by around 3% to 44.7 billion
units, primarily reflecting a decline for cigarettes. The decrease
in the estimated total market was mainly due to Argentina (down by
7.8%) and Canada (down by 13.1%), partly offset by Brazil (up by
3.5%) and Mexico (up by 1.8%).
PMI Shipment Volume
First-Quarter
(million units)
2024
2023
Change
Cigarettes
14,343
14,910
(3.8)%
Heated Tobacco Units
117
102
14.7%
Total Americas
14,460
15,012
(3.7)%
Note: Sum may not foot due to
roundings.
PMI's total cigarette and HTU shipment volume in the Region
decreased by 3.7% to 14.5 billion units, mainly due to Argentina
(down by 9.8%).
Cigar shipment volume declined by 23% versus a tough comparison
due to prior year trade inventory movements. Underlying (excluding
impact of accounting reclassifications performed in third quarter
of 2023) cigar revenue was broadly flat due to strong pricing.
Americas Oral SFP1
First-Quarter
Change
2024
2023
%
PMI Shipment Volume (million
cans)
Nicotine Pouches
131.6
73.2
79.7%
Moist Snuff
34.4
35.2
(2.3)%
Snus
0.7
1.2
(39.5)%
Total Americas
166.7
109.6
52.1%
(1) Excluding U.S. chew
Note: Sum may not foot due to
roundings.
Oral products shipments increased by 52.1%, driven by ZYN
nicotine pouches (up by 79.7%) in the U.S., partly offset by moist
snuff (down by 2.3%) driven by a declining category and
pricing.
Financial Summary
Financial Summary
-
Quarters Ended
March 31,
Change
Fav./(Unfav.)
Variance
Fav./(Unfav.)
2024
2023
Total
Excl. Curr. &
Acquis.
Total
Cur- rency
Acqui- sitions
Price
Vol/ Mix
Cost/ Other
(in millions)
Net Revenues
$
996
$
868
14.7
%
11.4
%
128
29
—
(1
)
121
(21
)
Operating Income
$
99
$
183
(45.9
)%
(57.9
)%
(84
)
22
—
(1
)
113
(218
)
Adjustments (1)
(227
)
(62
)
-(100
)%
-(100
)%
(165
)
—
—
—
—
(165
)
Adjusted Operating Income
$
326
$
245
33.1
%
24.1
%
81
22
—
(1
)
113
(53
)
Adjusted Operating Income
Margin
32.7
%
28.2
%
4.5
pp
3.2
pp
(1) See Schedule 8 in Exhibit 99.2 to the
Form 8-K dated April 23, 2024, for additional detail.
Net revenues increased by 11.4% on an organic basis, primarily
reflecting: favorable volume/mix, mainly due to growth of ZYN
nicotine pouches in the U.S., partly offset by lower cigarette
volume and unfavorable cigarette mix outside of the U.S.
Adjusted operating income increased by 24.1% on an organic
basis, mainly reflecting: favorable volume/mix, mainly due to the
same factors as for net revenues; partly offset by higher marketing
and administration costs, including incremental investment in the
U.S.
WELLNESS AND HEALTHCARE
The operating results of PMI’s Vectura Fertin Pharma business
are reported in the Wellness and Healthcare segment.
Financial Summary
Financial Summary
-
Quarters Ended
March 31,
Change
Fav./(Unfav.)
Variance
Fav./(Unfav.)
2024
2023
Total
Excl. Curr. &
Acquis.
Total
Cur- rency
Acqui- sitions
Price
Vol/ Mix
Cost/ Other
(in millions)
Net Revenues
$
90
$
86
4.7
%
2.3
%
4
2
—
2
—
—
Operating Income / (Loss)
$
(45
)
$
(38
)
(18.4
)%
(23.7
)%
(7
)
2
—
2
—
(11
)
Adjustments (1)
(41
)
(14
)
-(100
)%
-(100
)%
(27
)
—
—
—
—
(27
)
Adjusted Operating Income /
(Loss)
$
(3
)
$
(24
)
87.5
%
79.2
%
21
2
—
2
—
16
Adjusted Operating Income / (Loss)
Margin
(3.3
)%
(27.9
)%
24.6
pp
22.2
pp
(1) See Schedule 8 in Exhibit 99.2 to the
Form 8-K dated April 23, 2024, for additional detail.
Net revenues increased by 2.3% on an organic basis. The adjusted
operating loss of $3 million was primarily due to R&D and
administration costs.
Philip Morris International: Delivering a Smoke-Free
Future
Philip Morris International (PMI) is a leading international
tobacco company, actively delivering a smoke-free future and
evolving its portfolio for the long term to include products
outside of the tobacco and nicotine sector. The company’s current
product portfolio primarily consists of cigarettes and smoke-free
products. Since 2008, PMI has invested over $12.5 billion to
develop, scientifically substantiate and commercialize innovative
smoke-free products for adults who would otherwise continue to
smoke, with the goal of completely ending the sale of cigarettes.
This includes the building of world-class scientific assessment
capabilities, notably in the areas of pre-clinical systems
toxicology, clinical and behavioral research, as well as
post-market studies. In 2022, PMI acquired Swedish Match – a leader
in oral nicotine delivery – creating a global smoke-free champion
led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug
Administration has authorized versions of PMI’s IQOS devices and
consumables and Swedish Match’s General snus as Modified Risk
Tobacco Products. As of December 31, 2023, PMI's smoke-free
products were available for sale in 84 markets, and PMI estimates
that approximately 33 million adults around the world use PMI's
smoke-free products. Smoke-free business accounted for
approximately 37% of PMI’s total full-year 2023 net revenues. With
a strong foundation and significant expertise in life sciences, PMI
announced in February 2021 its ambition to expand into wellness and
healthcare areas and, through its Vectura Fertin Pharma business,
aims to enhance life through the delivery of seamless health
experiences. For more information, please visit www.pmi.com and
www.pmiscience.com.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and
goals and other forward-looking statements, including statements
regarding expected financial or operational performance; capital
allocation plans; investment strategies; regulatory outcomes;
market expectations; and business plans and strategies. Achievement
of future results is subject to risks, uncertainties and inaccurate
assumptions. In the event that risks or uncertainties materialize,
or underlying assumptions prove inaccurate, actual results could
vary materially from those contained in such forward-looking
statements. Pursuant to the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, PMI is identifying
important factors that, individually or in the aggregate, could
cause actual results and outcomes to differ materially from those
contained in any forward-looking statements made by PMI.
PMI's business risks include: excise tax increases and
discriminatory tax structures; increasing marketing and regulatory
restrictions that could reduce our competitiveness, eliminate our
ability to communicate with adult consumers, or ban certain of our
products in certain markets or countries; health concerns relating
to the use of tobacco and other nicotine-containing products and
exposure to environmental tobacco smoke; litigation related to
tobacco and/or nicotine use and intellectual property; intense
competition; the effects of global and individual country economic,
regulatory and political developments, natural disasters and
conflicts; the impact and consequences of Russia's invasion of
Ukraine; changes in adult smoker behavior; the impact of natural
disasters and pandemics on PMI's business; lost revenues as a
result of counterfeiting, contraband and cross-border purchases;
governmental investigations; unfavorable currency exchange rates
and currency devaluations, and limitations on the ability to
repatriate funds; adverse changes in applicable corporate tax laws;
adverse changes in the cost, availability, and quality of tobacco
and other agricultural products and raw materials, as well as
components and materials for our electronic devices; and the
integrity of its information systems and effectiveness of its data
privacy policies. PMI's future profitability may also be adversely
affected should it be unsuccessful in its attempts to introduce,
commercialize, and grow smoke-free products or if regulation or
taxation do not differentiate between such products and cigarettes;
if it is unable to successfully introduce new products, promote
brand equity, enter new markets or improve its margins through
increased prices and productivity gains; if it is unable to expand
its brand portfolio internally or through acquisitions and the
development of strategic business relationships; if it is unable to
attract and retain the best global talent, including women or
diverse candidates; or if it is unable to successfully integrate
and realize the expected benefits from recent transactions and
acquisitions. Future results are also subject to the lower
predictability of our smoke-free products performance.
PMI is further subject to other risks detailed from time to time
in its publicly filed documents, including PMI's Annual Report on
Form 10-K for the fourth quarter and year ended December 31, 2023,
and the Quarterly Report on Form 10-Q for the first quarter ended
March 31, 2024, which will be filed in the coming days. PMI
cautions that the foregoing list of important factors is not a
complete discussion of all potential risks and uncertainties. PMI
does not undertake to update any forward-looking statement that it
may make from time to time, except in the normal course of its
public disclosure obligations.
Non-GAAP Measures, Glossary and Explanatory Notes
Reconciliations of non-GAAP measures in this release to the most
directly comparable U.S. GAAP measures can be found in Exhibit 99.2
to the Form 8-K dated April 23, 2024, and at
www.pmi.com/2024Q1earnings. A glossary of key terms, definitions
and explanatory notes is available in the aforementioned Exhibit
99.2 and on the same webpage, where additional financial schedules,
as well as adjustments and other calculations have also been made
available.
Management reviews net revenues, gross profit, operating income,
operating income margin, operating cash flow and earnings per
share, or "EPS," on an adjusted basis, which may exclude the impact
of currency and other items such as acquisitions, asset impairment
and exit costs, tax items and other special items. Additionally,
starting in 2022 and on a comparative basis, for these measures
other than net revenues and operating cash flow, PMI includes
adjustments to add back amortization expense on acquisition related
intangible assets that are recorded as part of purchase accounting
and contribute to PMI’s revenue generation, as well as impairment
of intangible assets, if any. While amortization expense on
acquisition related intangible assets is excluded in these adjusted
measures, the net revenues generated from these acquired intangible
assets are included in the company's adjusted measures, unless
otherwise stated. Currency-neutral and organic growth rates reflect
the way management views underlying performance for these measures.
PMI believes that such measures provide useful insight into
underlying business trends and results. Management reviews these
measures because they exclude changes in currency exchange rates
and other factors that may distort underlying business trends,
thereby improving the comparability of PMI’s business performance
between reporting periods. Furthermore, PMI uses several of these
measures in its management compensation program to promote internal
fairness and a disciplined assessment of performance against
company targets. PMI discloses these measures to enable investors
to view the business through the eyes of management.
Non-GAAP measures used in this release should neither be
considered in isolation nor as a substitute for the financial
measures prepared in accordance with U.S. GAAP.
Appendix 1
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Key Market Data
Quarters Ended March
31,
Market
Total Market,
bio units
PMI Shipments, bio
units
PMI Market Share(2), %
Total
Cigarette
HTU
Total
HTU
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
2024
2023
pp Change
2024
2023
pp Change
Total(1)(2)
616.1
614.2
0.3
176.3
171.1
3.1
143.2
143.7
(0.4)
33.1
27.4
20.9
28.0
27.2
0.8
5.2
4.5
0.7
Europe
France
6.3
7.5
(16.1)
2.6
3.8
(31.7)
2.5
3.7
(31.7)
—
0.1
(29.3)
40.2
42.3
(2.1)
0.6
0.8
(0.2)
Germany(3)
16.1
15.9
1.3
6.3
6.0
4.8
5.3
5.5
(3.2)
1.0
0.5
85.9
39.9
39.4
0.5
6.3
5.4
0.9
Italy(3)
17.5
17.2
1.6
8.0
8.9
(10.4)
5.7
6.9
(17.3)
2.2
2.0
13.9
52.5
53.8
(1.3)
17.7
16.8
0.9
Poland(3)
14.1
13.4
4.7
6.1
5.5
10.0
4.8
4.3
11.6
1.3
1.2
4.2
42.9
40.9
2.0
9.0
9.4
(0.4)
Spain
9.7
9.9
(1.9)
2.8
2.9
(2.4)
2.6
2.7
(4.9)
0.2
0.2
34.8
28.9
29.1
(0.2)
2.7
2.1
0.6
SSEA, CIS & MEA
Egypt
19.3
22.5
(14.2)
5.3
5.8
(8.0)
5.0
5.6
(10.7)
0.3
0.2
89.8
27.1
25.6
1.5
1.9
1.2
0.7
Indonesia
73.6
69.2
6.4
20.2
19.8
2.3
20.0
19.7
1.6
0.2
0.1
+100
27.5
28.6
(1.1)
0.3
0.1
0.2
Philippines
10.2
11.5
(11.2)
5.5
6.7
(18.1)
5.4
6.6
(18.4)
0.1
0.1
23.9
53.2
57.7
(4.5)
0.7
0.5
0.2
Russia
46.7
44.9
4.2
15.5
14.7
5.4
11.5
10.9
4.9
4.0
3.8
6.8
32.4
31.2
1.2
9.5
8.3
1.2
Turkey
30.1
26.2
14.8
16.0
12.8
25.0
16.0
12.8
25.0
—
—
—
53.3
48.9
4.4
—
—
—
EA, AU & PMI DF
Australia
1.4
1.9
(29.6)
0.5
0.7
(26.1)
0.5
0.7
(26.1)
—
—
—
37.6
35.8
1.8
—
—
—
Japan(2)
35.7
35.3
1.0
17.9
14.8
21.1
4.3
4.7
(8.4)
13.6
10.1
34.8
41.1
39.5
1.6
29.4
26.3
3.1
South Korea
16.5
16.9
(2.4)
3.4
3.3
2.6
2.0
2.1
(5.3)
1.4
1.2
17.1
20.4
19.6
0.8
8.2
6.8
1.4
Americas
Argentina
7.1
7.7
(7.8)
4.4
4.9
(9.8)
4.4
4.9
(9.8)
—
—
—
61.5
62.9
(1.4)
—
—
—
Mexico
6.2
6.1
1.8
3.7
3.7
0.6
3.7
3.7
0.1
—
—
—
59.8
60.5
(0.7)
0.8
0.5
0.3
(1) Market share estimates are calculated
using IMS data, unless otherwise stated
(2) Total market and market share
estimates include cigarillos in Japan
(3) PMI market share reflects estimated
adjusted IMS volume share, with historical total/HTU results: Italy
Q2 53.6%/17.1%, Q3 53.4%/16.0%, Q4 53.7%/17.2%; Poland Q2
41.1%/8.6%, Q3 42.0%/8.4%, Q4 43.8%/9.9%
Note: % change for Total Market and PMI
shipments is computed based on millions of units. "-" indicates
volume below 50 million units and market share below 0.1%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240422831759/en/
Philip Morris International Investor Relations: Stamford,
CT: +1 (203) 905 2413 Lausanne, Switzerland: +41 582 424 666
InvestorRelations@pmi.com
Media: Lausanne: +41 (0)58 242 4500 David.Fraser@pmi.com
Philip Morris (NYSE:PM)
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過去 株価チャート
から 1 2024 まで 1 2025
