Delivers 2024 Reported Diluted EPS of $4.52,
or $6.01 before Canada non-cash impairment of $1.49, compared to
$5.02 in 2023 and Adjusted Diluted EPS of $6.57, Representing
Growth of 9.3%, and 15.6% on Currency-Neutral Basis
Regulatory News:
Philip Morris International Inc. (PMI) (NYSE: PM) today
announces its 2024 fourth-quarter and full-year results.1
"2024 was a remarkable year for PMI. We delivered very strong
full-year results driven by the continued growth of IQOS and ZYN in
addition to a robust combustibles performance," said Jacek Olczak,
Chief Executive Officer. "The long-awaited U.S. FDA authorization
of all ZYN nicotine pouches currently marketed in the U.S. is
further evidence of the compelling science supporting smoke-free
products. We hope our other pending FDA applications will be
accelerated. We also hope other countries follow the example of the
U.S. and embrace effective tobacco harm reduction measures. This is
especially important in places where smoke-free products are
banned, resulting in the perpetuation of combustible cigarette
consumption." "With strong momentum across all categories, we are
confident that our smoke-free transformation and unparalleled brand
portfolio will continue to deliver excellent performance and create
value for our shareholders in 2025 and for the long term."
Results Highlights
- Smoke-free business (SFB): Quarterly shipments of HTU
and oral smoke-free products exceeded 40 billion units for the
first time, driving our smoke-free business to a superior
performance, with full-year net revenues increasing by 14.2% (16.7%
organically) and gross profit increasing by 18.7% (22.7%
organically). In the fourth quarter, we delivered 9.2% net revenue
growth (9.0% organically) and 15.1% gross profit growth (both
reported and organically), despite a tough comparison due to
shipment phasing. The smoke-free business accounted for 40% of our
total net revenues and around 42% of gross profit (up by 0.7pp and
0.9pp respectively, versus fourth-quarter 2023), with 38.6 million
estimated adult users of our smoke-free products (up by 5.3 million
versus December 2023), which are now available in 95 markets.
- Inhalable smoke-free products (SFP): IQOS continues to
strengthen its overall position as the second largest nicotine
‘brand’ in markets where present (gaining 0.7pp of combined
cigarette and HTU industry volumes in the fourth quarter) and
driving the growth of the heat-not-burn category (over 75% of
global category volumes). HTU adjusted in-market sales (IMS)
volume, which excludes the net impact of estimated distributor and
wholesaler inventory movements, was up for the full year by an
estimated 12.6%, with an acceleration, as expected, in the second
half to close to 14%, with growth of around 13% in the fourth
quarter.
- In Japan, ILUMA i fueled the growth of IQOS, with adjusted IMS
up by around 13% for the full year and the fourth quarter, the 9th
consecutive quarter of double-digit growth. IQOS HTU adjusted
market share increased by 3.1pp to 30.6% in the fourth quarter. In
December, the overall HTU category exceeded 50% of total nicotine
offtake share in 10 major cities and 5 prefectures.
- In Europe, IQOS HTU adjusted market share increased by 0.9pp in
the fourth quarter to 10.6%. Adjusted IMS grew by an estimated 9.4%
for the full year with an acceleration in the second half to almost
11%. This includes close to 10% estimated growth in the fourth
quarter, with strong double-digit growth in many markets, including
Spain, Bulgaria, Romania, Greece, and Germany. IQOS HTU offtake
share reached a number of milestones in key cities, crossing 40% in
Budapest, 30% in Rome, 15% in Belgrade, and approaching 10% in
London and Vienna, with Madrid not far behind.
- Outside Europe and Japan, strong adjusted IMS growth continued
and offtake share increased in key cities across the globe,
including Riyadh, Kuala Lumpur, Jakarta, and Mexico City.
In the vaping category, VEEV is an
increasingly trusted choice among IQOS legal-age poly-users, and an
important part of our smoke-free multi-category strategy, which we
continue to deploy across our markets. VEEV is a top 3 pod brand in
13 European markets (holding the #1 position in 5 markets,
including Italy, Romania and Czech Republic).
- Oral SFP2: Full-year shipment volume increased by nearly
28% in cans (nearly 25% in pouches or pouch equivalents). Fourth
quarter shipment volume increased by 25% in cans (22% in pouches or
pouch equivalents), fueled by ZYN nicotine pouch growth in the
U.S., where shipments reached nearly 165 million cans, representing
growth of nearly 42% versus prior year. Outside the U.S., our
nicotine pouch quarterly shipment volume more than doubled, with
notable contributions from Pakistan, South Africa, the UK and
Mexico. The number of markets where our nicotine pouch products are
available increased to 37, including recent launches in Italy,
Romania and Thailand.
- Combustibles: Full-year net revenues grew by 4.0% (5.9%
organically) predominantly driven by strong pricing. Fourth quarter
net revenues grew by 6.0% (6.2% organically), driven by another
quarter of high single-digit pricing and growing industry volumes
in markets where smoke-free products are not allowed, including
Turkey, India, Brazil and Vietnam. Strong pricing and productivity
improvements resulted in gross profit growth of 10.7% (10.8%
organically). Our global brands portfolio and Marlboro both
achieved further market share gains.
- Dividend: Declared regular quarterly dividend of $1.35
per share, or an annualized $5.40 per share.
________________________ 1 Explanation of PMI's use of non-GAAP
measures cited in this document and reconciliations to the most
directly comparable U.S. GAAP measures can be found in the
“Non-GAAP Measures, Glossary and Explanatory Notes” section of this
release, in Exhibit 99.2 to the company's Form 8-K dated February
6, 2025, and at www.pmi.com/2024Q4earnings. 2 Oral smoke-free
products volume excludes snuff, snuff leaf and U.S. chew
Operating Review - Fourth
Quarter
Total
HTU
Oral SFP3
Cigarettes
Shipment Volume (units bn)
193.1
35.7
4.6
152.8
vs. Q4 2023
2.3%
5.1%
22.0%
1.1%
PMI
Smoke-Free
Business
Combustibles
Net Revenues ($ bn)
$9.7
$3.9
$5.8
reported vs. Q4 2023
7.3%
9.2%
6.0%
organic vs. Q4 2023
7.3%
9.0%
6.2%
Gross Profit ($ bn)
$6.3
$2.6
$3.7
reported vs. Q4 2023
12.5%
15.1%
10.7%
organic vs. Q4 2023
12.6%
15.1%
10.8%
Operating Income ($ bn)
$3.3
reported vs. Q4 2023
12.8%
organic vs. Q4 2023
11.8%
Reported
Diluted
EPS
Adjusting
Items*
Adjusted
Diluted
EPS
Currency
Impact
Adjusted
Diluted
EPS ex. Currency
EPS
$(0.38)
$(1.93)
$1.55
$0.06
$1.49
vs. Q4 2023
-(100)%
14.0%
9.6%
(*) For a list of adjusting items refer to
page 23
________________________ 3 In pouches or pouch equivalents
Operating Review - Full
Year
Total
HTU
Oral SFP4
Cigarettes
Shipment Volume (units bn)
774.0
139.7
17.4
616.8
vs. FY 2023
2.9%
11.6%
24.6%
0.6%
PMI
Smoke-Free
Business
Combustibles
Net Revenues ($ bn)
$37.9
$14.7
$23.2
reported vs. FY 2023
7.7%
14.2%
4.0%
organic vs. FY 2023
9.8%
16.7%
5.9%
Gross Profit ($ bn)
$24.5
$9.7
$14.8
reported vs. FY 2023
10.2%
18.7%
5.2%
organic vs. FY 2023
12.7%
22.7%
6.8%
Operating Income ($ bn)
$13.4
reported vs. FY 2023
16.0%
organic vs. FY 2023
14.9%
Reported
Diluted
EPS
Adjusting
Items*
Adjusted
Diluted
EPS
Currency
Impact
Adjusted
Diluted
EPS ex. Currency
EPS
$4.52
$(2.05)
$6.57
$(0.38)
$6.95
vs. FY 2023
(10.0)%
9.3%
15.6%
(*) For a list of adjusting items refer to
page 23
________________________ 4 In pouches or pouch equivalents
2025 Full-Year
Forecast
Full-Year
2025
Forecast
2024
Growth
Reported Diluted EPS
$6.55
-
$6.68
$4.52
Adjustments:
Restructuring charges
—
0.10
Impairment of goodwill and other
intangibles
—
0.01
Amortization of intangibles(1)
0.49
0.40
Loss on sale of Vectura Group
—
0.13
Egypt sales tax charge
—
0.03
Megapolis localization tax impact
—
0.05
Income tax impact associated with Swedish
Match AB financing
—
0.14
Impairment related to the RBH equity
investment
—
1.49
Fair value adjustment for equity security
investments
—
(0.27)
Tax items
—
(0.03)
Total Adjustments
0.49
2.05
Adjusted Diluted EPS
$7.04
-
$7.17
$6.57
7.2%
-
9.1%
Less: Currency
(0.22)
Adjusted Diluted EPS, excluding
currency
$7.26
-
$7.39
$6.57
10.5%
-
12.5%
(1) See forecast assumptions for
details
Reported diluted EPS is forecast to be in a range of $6.55 to
$6.68, at prevailing exchange rates, versus reported diluted EPS of
$4.52 in 2024. Excluding a total 2025 adjustment of $0.49 per
share, this forecast represents a projected increase of 7.2% to
9.1% versus adjusted diluted EPS of $6.57 in 2024. Also excluding
an adverse currency impact of $0.22, at prevailing exchange rates,
this forecast represents a projected increase of 10.5% to 12.5%
versus adjusted diluted EPS of $6.57 in 2024, as outlined in the
above table.
2025 Full-Year Forecast Assumptions
This forecast assumes:
- An estimated total international industry volume decline of
around 1% for cigarettes and HTUs, excluding China and the
U.S.;
- Total cigarette and smoke-free product shipment volume growth
for PMI of up to 2% driven by smoke-free products volume growth of
12% to 14%. This factors absolute growth in HTU adjusted IMS
volumes at a similar level to 2024, translating into 10% to 12%
growth, with the HTU shipment growth rate broadly in line subject
to shipment timing and trade inventory movements, and an
acceleration in U.S. nicotine pouch shipment volume to reach 780 to
820 million cans, representing growth of 34% to 41%;
- Net revenue growth of around 6% to 8% on an organic basis;
- Organic operating income growth of 10.5% to 12.5%;
- Full-year amortization of acquired intangibles of $0.49 per
share, including the amortization of IQOS commercialization rights
in the U.S. related to the agreement to end our commercial
relationship with Altria Group, Inc. covering IQOS in the
U.S.;
- An effective tax rate, excluding discrete tax events, of
approximately 22.5% to 23.5%;
- Operating cash flow of around $11 billion at prevailing
exchange rates, subject to year-end working capital requirements.
This takes into account non-recurring payments relating to the
German tax surcharge and the U.S. Tax Cuts and Jobs Act, which
amount to approximately $1 billion;
- Capital expenditures of approximately $1.5 billion, including
further investments in ZYN capacity in the U.S.;
- Further net debt to adjusted EBITDA ratio improvement as we
continue to target a ratio of around 2x by the end of 2026;
- No dividend income from Rothmans, Benson & Hedges Inc. (our
deconsolidated Canadian affiliate);
- No share repurchases in 2025; and
- First quarter adjusted diluted EPS of $1.58 to $1.63, including
an estimated adverse currency impact of 4 cents at prevailing
exchange rates.
Factors described in the Forward-Looking and Cautionary
Statements section of this release represent continuing risks to
these projections.
Update on CCAA Proceeding in
Canada
In October 2024, PMI was informed by its deconsolidated Canadian
affiliate, Rothmans, Benson & Hedges Inc. (RBH), that the
court-appointed mediator and monitor in RBH’s Companies’ Creditors
Arrangement Act (CCAA) proceeding filed a proposed plan of
compromise and arrangement outlining certain terms of a
comprehensive resolution of tobacco product-related claims and
litigation in Canada against RBH and its affiliates. See PMI's Form
8-K dated October 18, 2024 for additional details.
On January 24, 2025, RBH filed an objection to approval of the
proposed plan with the CCAA court. The positions taken by RBH in
this objection, the positions taken by other parties in related
filings, and other related developments narrowed the range of
possible outcomes with respect to the allocation of the aggregate
settlement amount of CAD 32.5 billion, which was determined to be
an indicator that PMI’s investment in RBH may be impaired. Although
there remains some uncertainty as to the final terms of the plan,
PMI concluded that, the estimated fair value of its investment in
RBH was lower than its carrying value and recorded a non-cash
impairment charge of $2.3 billion in the consolidated statement of
earnings for the year ended December 31, 2024 as a recognized
subsequent event, with an adverse impact on reported diluted EPS of
$1.49.
Additionally, PMI has determined that if the CCAA court approves
the plan as proposed and it is subsequently implemented, RBH would
likely remain deconsolidated under U.S. GAAP. Since the first
quarter of 2019, and to date, PMI’s reported and adjusted EPS, net
debt and other financial results have excluded RBH. However,
subject to the terms and requirements of the proposed plan, the
payment of certain dividends from RBH to PMI would be permitted
going forward, which would be incremental to PMI’s cash flow and
adjusted diluted EPS.
New Segment Structure
Following the sale of Vectura Group Ltd. on December 31, 2024,
we will update our segment reporting by including the remaining
units of Vectura Fertin Pharma in the Europe segment as of the
first quarter of 2025. We plan to disclose select historical
financial information for the 2022 to 2024 period reflecting this
change in the coming weeks.
Conference Call
A conference call hosted by Jacek Olczak, Chief Executive
Officer, and Emmanuel Babeau, Chief Financial Officer, will be
webcast at 9:00 a.m., Eastern Time, on February 6, 2025. Access the
webcast at www.pmi.com/2024Q4earnings.
Financial Review
TOTAL MARKET, CONSOLIDATED SHIPMENT VOLUME
& MARKET SHARE
Total Market Volume
Full-Year Estimated international industry volume
(excluding China and the U.S.) for cigarettes and HTUs increased by
1.5% to 2.6 trillion units.
Consolidated Shipment Volume
PMI Cigarettes and HTUs
Fourth-Quarter
Full-Year
(million units)
2024
2023
Change
2024
2023
Change
Cigarettes
152,780
151,094
1.1%
616,827
612,949
0.6%
Heated Tobacco Units
35,718
33,972
5.1%
139,743
125,263
11.6%
Total Cigarettes and HTUs
188,498
185,066
1.9%
756,570
738,212
2.5%
PMI Oral SFP(1)
Fourth-Quarter
Full-Year
(million cans)
2024
2023
Change
2024
2023
Change
Nicotine Pouches
183.8
125.7
46.2%
644.0
421.1
52.9%
Snus
58.2
61.8
(5.9)%
239.6
240.4
(0.3)%
Moist Snuff
32.0
31.2
2.4%
134.6
133.7
0.6%
Other Oral SFP(2)
0.6
0.8
(20.1)%
3.4
4.2
(18.3)%
Total Oral SFP
274.6
219.6
25.0%
1,021.6
799.3
27.8%
(1) Excluding snuff, snuff leaf and U.S.
chew
(2) Includes chew bags and tobacco
bits
Note: Sum may not foot due to
rounding.
Fourth-Quarter PMI's total cigarette and HTU shipment
volume increased by 1.9% (HTU shipments increased by 5.1%, and
cigarette shipments increased by 1.1%), driven by increases in the
SSEA, CIS & MEA Region and the EA, AU & PMI DF Region.
PMI’s total oral product shipment volume in cans increased by
25.0%, predominantly reflecting growth in nicotine pouches.
Full-Year PMI's total cigarette and HTU shipment volume
increased by 2.5% (HTU shipments increased by 11.6%, while
cigarette shipments increased by 0.6%) with increases across all
regions except the Americas.
PMI’s total oral product shipment volume in cans increased by
27.8%, primarily reflecting growth in nicotine pouches.
International Share of Market - Cigarettes and HTUs
Fourth-Quarter
Full-Year
2024
2023
Change (pp)
2024
2023
Change (pp)
Total International Market
Share(1)
28.9%
28.5%
0.4
28.7%
28.3%
0.4
Cigarettes
23.5%
23.6%
(0.1)
23.5%
23.7%
(0.2)
HTU
5.4%
4.9%
0.5
5.2%
4.7%
0.5
Cigarette over Cigarette Market
Share(2)
25.3%
25.3%
—
25.3%
25.2%
0.1
(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 rounding.
CONSOLIDATED FINANCIAL SUMMARY
Fourth-Quarter
Financial Summary
- Quarters Ended
December
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
$9,706
$9,047
7.3
%
7.3
%
659
—
—
482
179
(2
)
Cost of Sales(1)
(3,423
)
(3,462
)
1.1
%
1.7
%
39
(33
)
14
—
(31
)
89
Marketing, Administration and Research
Costs(2)
(3,024
)
(2,696
)
(12.2
)%
(16.9
)%
(328
)
128
(1
)
—
—
(455
)
Operating Income
$3,259
$2,889
12.8
%
9.1
%
370
95
13
482
148
(368
)
Restructuring charges
(12
)
—
—
%
—
%
(12
)
—
—
—
—
(12
)
Amortization of Intangibles
(247
)
(129
)
(91.5
)%
(91.5
)%
(118
)
—
—
—
—
(118
)
Loss on sale of Vectura Group
(1
)
—
—
%
—
%
(1
)
—
—
—
—
(1
)
Charges related to the war in Ukraine
—
(34
)
+100
%
+100
%
34
—
—
—
—
34
Adjusted Operating Income
$3,519
$3,052
15.3
%
11.8
%
467
95
13
482
148
(271
)
Adjusted Operating Income
Margin
36.3
%
33.7
%
2.6
pp
1.4
pp
(1) Includes $5 million in 2024 and $18
million in 2023 related to the special items below.
(2) Includes $255 million in 2024 and $145
million in 2023 related to the special items below.
Net revenues increased by 7.3% on an organic basis, mainly
reflecting: a favorable pricing variance, primarily due to higher
combustible tobacco pricing; and favorable volume/mix, mainly
driven by higher smoke-free products volume, notwithstanding
unfavorable cigarette mix.
Adjusted operating income increased by 11.8% on an organic
basis, mainly reflecting: the same factors as for net revenues;
partly offset by higher marketing, administration and research
costs, notwithstanding lower manufacturing costs due to improved
productivity.
Full-Year
Financial Summary
- Years Ended December 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
$37,878
$35,174
7.7
%
10.1
%
2,704
(841
)
—
2,203
1,268
74
Termination of distribution arrangement in
the Middle East
—
(80
)
+100
%
+100
%
80
—
—
—
—
80
Adjusted Net Revenues
$37,878
$35,254
7.4
%
9.8
%
2,624
(841
)
—
2,203
1,268
(6
)
Net Revenues
$37,878
$35,174
7.7
%
10.1
%
2,704
(841
)
—
2,203
1,268
74
Cost of Sales (1)
(13,329
)
(12,893
)
(3.4
)%
(4.5
)%
(436
)
101
47
—
(504
)
(80
)
Marketing, Administration and Research
Costs (2)
(11,147
)
(10,060
)
(10.8
)%
(11.4
)%
(1,087
)
58
(1
)
—
—
(1,144
)
Impairment of Goodwill
—
(665
)
+100
%
+100
%
665
—
—
—
—
665
Operating Income
$13,402
$11,556
16.0
%
21.5
%
1,846
(682
)
46
2,203
764
(485
)
Restructuring charges
(180
)
(109
)
(65.1
)%
(65.1
)%
(71
)
—
—
—
—
(71
)
Loss on sale of Vectura Group
(199
)
—
—
%
—
%
(199
)
—
—
—
—
(199
)
Egypt sales tax charge
(45
)
—
—
%
—
%
(45
)
—
—
—
—
(45
)
Termination of distribution arrangement in
the Middle East (3)
—
(80
)
+100
%
+100
%
80
—
—
—
—
80
Impairment of Goodwill and Other
Intangibles (4)
(27
)
(680
)
96.0
%
96.0
%
653
—
—
—
—
653
Amortization of Intangibles
(835
)
(497
)
(68.0
)%
(68.0
)%
(338
)
—
—
—
—
(338
)
Charges related to the war in Ukraine
—
(53
)
+100
%
+100
%
53
—
—
—
—
53
Swedish Match AB acquisition accounting
related items
—
(18
)
+100
%
+100
%
18
—
—
—
—
18
South Korea Indirect Tax Charge
—
(204
)
+100
%
+100
%
204
—
—
—
—
204
Termination of agreement with Foundation
for a Smoke-Free World
—
(140
)
+100
%
+100
%
140
—
—
—
—
140
Adjusted Operating Income
$14,688
$13,337
10.1
%
14.9
%
1,351
(682
)
46
2,203
764
(980
)
Adjusted Operating Income
Margin
38.8
%
37.8
%
1.0
pp
1.8
pp
(1) Includes $51 million in 2024 and $90
million in 2023 related to the special items below.
(2) Includes $1,235 million in 2024 and
$946 million in 2023 related to the special items below.
(3) Included in Net Revenues above.
(4) Includes $665 million impairment of
goodwill in 2023.
Adjusted net revenues increased by 9.8% on an organic basis,
mainly reflecting: a favorable pricing variance, primarily driven
by higher combustible tobacco pricing; and favorable volume/mix,
driven by higher smoke-free products volume, partly offset by
unfavorable cigarette mix.
Adjusted operating income increased by 14.9% on an organic
basis, mainly reflecting: the same factors as for net revenues;
partly offset by higher marketing, administration and research
costs (primarily due to inflationary impacts, notably related to
wages, and higher commercial investments), as well as higher
manufacturing costs, notably related to tobacco leaf and the impact
of the EU single-use plastics directive, partly offset by
productivity.
EUROPE REGION
Total Market, PMI Shipment & Market Share
Commentaries
Fourth-Quarter The estimated total market for cigarettes
and HTUs in the Region was broadly stable (130.8 billion units),
with a 1.3% decrease for cigarettes and continued HTU growth.
Notable decreases in the estimated total market in France (down by
11.7%), and the United Kingdom (down by 17.6%) were offset by
Ukraine (up by 8.7%), Poland (up by 3.8%), and Spain (up by
4.1%).
Full-Year The estimated total market for cigarettes and
HTUs in the Region was broadly stable (541.9 billion units),
reflecting a 1.4% decrease for cigarettes and continued HTU growth.
Similar to the quarter, notable decreases in the estimated total
market in France (down by 12.5%), and the United Kingdom (down by
12.6%) were largely offset by Ukraine (up by 4.3%), Bulgaria (up by
7.3%), and Poland (up by 2.3%).
Europe Key Data
Fourth-Quarter
Full-Year
Change
Change
2024
2023
% / pp
2024
2023
% / pp
PMI Shipment Volume (million
units)
Cigarettes
38,388
39,330
(2.4)%
162,679
165,593
(1.8)%
Heated Tobacco Units
15,195
14,310
6.2%
53,669
49,269
8.9%
Total Europe
53,583
53,640
(0.1)%
216,348
214,862
0.7%
PMI Market Share
Cigarettes
29.9%
30.2%
(0.3)
30.0%
30.3%
(0.3)
Heated Tobacco Units
10.8%
10.0%
0.8
10.0%
9.1%
0.9
Total Europe
40.7%
40.2%
0.5
40.0%
39.4%
0.6
Note: Sum may not foot due to
rounding.
Europe Oral SFP
Fourth-Quarter
Full-Year
2024
2023
Change
2024
2023
Change
PMI Shipment Volume (million
cans)
Nicotine Pouches
13.6
8.6
58.0%
48.8
34.8
40.2%
Snus
57.5
61.1
(5.9)%
236.7
236.4
0.1%
Other Oral SFP(1)
0.6
0.8
(20.1)%
3.4
4.2
(18.6)%
Total Europe
71.7
70.4
1.7%
288.9
275.4
4.9%
(1) Includes chew bags and tobacco
bits
Note: Sum may not foot due to
rounding.
Fourth-Quarter PMI's total cigarette and HTU shipment
volume in the Region was broadly flat (53.6 billion units). Total
cigarette and HTU shipment volume decreased notably in Italy (down
by 4.6%) and France (down by 13.5%), and increased notably in
Poland (up by 10.4%) as well as Ukraine (up by 11.6%).
PMI's estimated HTU adjusted in-market sales volume in the
Region increased by close to 10% in the quarter, reflecting
continued growth momentum for IQOS. HTU shipments increased by
6.2%.
PMI's HTU share of the total cigarette and HTU market in the
Region increased by 0.9pp on an adjusted basis.
Oral SFP shipments increased by 1.7%, driven by nicotine pouches
(up by 58.0%).
Full-Year PMI's total cigarette and HTU shipment volume
in the Region increased by 0.7% to 216.3 billion units. Total
cigarette and HTU shipment volume increased notably in Poland (up
by 7.9%) and Ukraine (up by 9.4%), and decreased notably in France
(down by 17.3%) as well as the Netherlands (down by 20.9%).
PMI's estimated HTU adjusted in-market sales volume in the
Region increased by 9.4%, reflecting continued growth momentum for
IQOS, partly offset by the impact from the EU characterizing flavor
ban. HTU shipments increased by 8.9%.
PMI's HTU share of the total cigarette and HTU market in the
Region increased by 0.9 pp on an adjusted basis.
Oral SFP shipments increased by 4.9%, driven by growth of
nicotine pouches (up by 40.2%).
Financial Summary
Fourth-Quarter
Financial Summary
- Quarters Ended
December
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
$
4,056
$
3,766
7.7
%
5.5
%
290
82
—
202
6
—
Operating Income
$
1,802
$
1,618
11.4
%
11.4
%
184
—
—
202
(23
)
5
Adjustments (1)
(40
)
(72
)
44.3
%
44.3
%
32
—
—
—
—
32
Adjusted Operating Income
$
1,843
$
1,690
9.1
%
9.1
%
153
—
—
202
(23
)
(28
)
Adjusted Operating Income
Margin
45.4
%
44.9
%
0.5
pp
1.5
pp
(1) See Schedule 10 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, for additional detail.
Net revenues increased by 5.5% on an organic basis, reflecting a
favorable pricing variance, mainly driven by higher combustible
tobacco pricing.
Adjusted operating income increased by 9.1% on an organic basis,
primarily reflecting the same factor as for net revenues.
Full-Year
Financial Summary
-
Years
Ended
December
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
$
15,357
$
14,231
7.9
%
7.1
%
1,126
116
—
798
212
—
Operating Income
$6,938
$6,169
12.5
%
12.4
%
769
6
—
798
90
(125
)
Adjustments (1)
(160
)
(323
)
50.3
%
50.3
%
163
—
—
—
—
163
Adjusted Operating Income
$7,099
$6,492
9.3
%
9.3
%
607
6
—
798
90
(288
)
Adjusted Operating Income
Margin
46.2
%
45.6
%
0.6
pp
0.9
pp
(1) See Schedule 11 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, 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 cigarette volume and
adverse cigarette mix.
Adjusted operating income increased by 9.3% on an organic basis,
primarily reflecting: the same factors as for net revenues; partly
offset by higher marketing, administration and research costs.
SSEA, CIS & MEA REGION
Total Market, PMI Shipment & Market Share
Commentaries
Fourth-Quarter The estimated total market for cigarettes
and HTUs in the Region increased by 3.3% to 402.0 billion units.
The increase in the estimated total market was mainly due to
Vietnam (up by 14.4%), Egypt (up by 16.1%), and Turkey (up by
6.6%), partly offset by Bangladesh (down by 7.8%).
Full-Year The estimated total market for cigarettes and
HTUs in the Region increased by 2.8% to 1,571.9 billion units. The
increase in the estimated total market was mainly due to Turkey (up
by 9.5%), and Egypt (up by 11.3%), partly offset by Bangladesh
(down by 5.0%), and Thailand (down by 13.7%).
Our Regional market share increased by 0.4 points to 23.8%.
PMI Shipment Volume
Fourth-Quarter
Full-Year
(million units)
2024
2023
Change
2024
2023
Change
Cigarettes
85,796
83,009
3.4%
344,834
333,353
3.4%
Heated Tobacco Units
8,428
7,502
12.3%
28,570
24,890
14.8%
Total SSEA, CIS & MEA
94,224
90,511
4.1%
373,404
358,243
4.2%
Fourth-Quarter PMI's total cigarette and HTU shipment
volume in the Region increased by 4.1% to 94.2 billion units, with
notable increases in Turkey (up by 9.3%) and India (up 51.2%),
partly offset by Egypt (down by 12.8%) and the Philippines (down by
8.7%) . PMI's estimated HTU adjusted in-market sales volume
increased by around 16%, with approximately 12% HTU shipment volume
growth.
Full-Year PMI's total cigarette and HTU shipment volume
in the Region increased by 4.2% to 373.4 billion units, mainly
driven by Turkey (up by 13.4%), partly offset by Indonesia (down by
3.7%). PMI's estimated HTU adjusted in-market sales volume
increased by approximately 15.6%, with about 15% HTU shipment
volume growth.
Financial Summary
Fourth-Quarter
Financial Summary
- Quarters Ended
December
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
$
2,868
$
2,707
5.9
%
6.6
%
161
(17
)
—
141
37
—
Operating Income
$806
$699
15.3
%
12.3
%
107
8
13
141
28
(83
)
Adjustments (1)
(4
)
(5
)
16.1
%
16.1
%
1
—
—
—
—
1
Adjusted Operating Income
$810
$704
15.1
%
12.1
%
106
8
13
141
28
(84
)
Adjusted Operating Income
Margin
28.2
%
26.0
%
2.2
pp
1.3
pp
(1) See Schedule 10 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, for additional detail.
Net revenues increased by 6.6% on an organic basis, primarily
reflecting: a favorable pricing variance, predominantly driven by
higher combustible tobacco pricing; and favorable volume/mix,
driven by higher cigarette and HTU volume, partly offset by
unfavorable mix.
Adjusted operating income increased by 12.1% on an organic
basis, primarily reflecting: the same factors as for net revenues;
partly offset by higher marketing, administration and research
costs.
Full-Year
Financial Summary
- Years Ended December 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
$
11,261
$
10,629
5.9
%
11.7
%
632
(610
)
—
821
343
78
Adjustment (1)
—
(80
)
+100
%
+100
%
80
—
—
—
—
80
Adjusted Net Revenues
$
11,261
$
10,709
5.2
%
10.9
%
552
(610
)
—
821
343
(2
)
Net Revenues
$
11,261
$
10,629
5.9
%
11.7
%
632
(610
)
—
821
343
78
Operating Income
$3,429
$3,136
9.3
%
26.8
%
293
(592
)
46
821
145
(127
)
Adjustments (2)
(63
)
(173
)
63.4
%
63.4
%
110
—
—
—
—
110
Adjusted Operating Income
$3,492
$3,309
5.5
%
22.0
%
183
(592
)
46
821
145
(236
)
Adjusted Operating Income
Margin
31.0
%
30.9
%
0.1
pp
3.1
pp
(1) Termination of distribution
arrangement in the Middle East.
(2) See Schedule 11 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, for additional detail.
Adjusted net revenues increased by 10.9% on an organic basis,
primarily reflecting: a favorable pricing variance, predominantly
driven by higher combustible tobacco pricing; and favorable
volume/mix, driven by higher cigarette and HTU volume coupled with
favorable mix.
Adjusted operating income increased by 22.0% on an organic
basis, primarily reflecting: a favorable pricing variance,
predominantly driven by higher combustible tobacco pricing; and
favorable volume/mix, driven by higher cigarette and HTU volume;
partly offset by higher manufacturing costs (primarily due to
higher cost of tobacco leaf) as well as higher marketing,
administration and research costs.
EA, AU AND PMI DF REGION
Total Market, PMI Shipment & Market Share
Commentaries
Fourth-Quarter The estimated total market for cigarettes
and HTUs in the Region, excluding China, increased by 0.8% to 81.1
billion units, with a decrease in cigarettes, offset by HTU growth.
The increase in the estimated total market was mainly driven by
International Duty Free (up by 14.4%) and Japan (up by 2.6%),
partly offset by Taiwan (down by 7.4%) and Australia (down by
26.5%).
Full-Year The estimated total market for cigarettes and
HTUs in the Region, excluding China, was broadly stable (318.9
billion units), with a decrease in cigarettes, largely offset by
HTU growth. The decrease in the estimated total market in Australia
(down by 28.5%) and Korea (down by 2.2%) was offset by
International Duty Free (up by 11.3%) and Japan (up by 1.4%).
Our Regional market share increased by 1.3 points to 31.3%.
PMI Shipment Volume
Fourth-Quarter
Full-Year
(million units)
2024
2023
Change
2024
2023
Change
Cigarettes
11,424
11,287
1.2%
47,670
50,689
(6.0)%
Heated Tobacco Units
11,945
11,958
(0.1)%
56,882
50,519
12.6%
Total EA, AU & PMI DF
23,369
23,245
0.5%
104,552
101,208
3.3%
Fourth-Quarter PMI's total cigarette and HTU shipment
volume in the Region increased by 0.5% to 23.4 billion units with
growth in International Duty Free (up by 21.5%), partly offset by
Japan (down by 1.9%).
PMI's estimated HTU adjusted in-market sales volume in the
Region increased by around 14% and ahead of shipments, which were
higher in the first half of the year.
Full-Year PMI's total cigarette and HTU shipment volume
in the Region increased by 3.3% to 104.6 billion units, driven by
Japan (up by 6.4%), partly offset by Australia (down by 28.5%).
PMI's estimated HTU adjusted in-market sales volume in the
Region increased by 14.5%. HTU shipments increased by 12.6%.
Financial Summary
Fourth-Quarter
Financial Summary
- Quarters Ended
December
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
$
1,434
$
1,430
0.3
%
2.2
%
4
(27
)
—
36
(5
)
—
Operating Income
$574
$576
(0.3
)%
6.8
%
(2
)
(41
)
—
36
6
(3
)
Adjustments (1)
(1
)
—
—
%
—
%
(1
)
—
—
—
—
(1
)
Adjusted Operating Income
$575
$576
(0.2
)%
6.9
%
(1
)
(41
)
—
36
6
(3
)
Adjusted Operating Income
Margin
40.1
%
40.3
%
(0.2
)pp
1.9
pp
(1) See Schedule 10 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, for additional detail.
Net revenues increased by 2.2% on an organic basis, primarily
reflecting a favorable pricing variance.
Adjusted operating income increased by 6.9% on an organic basis,
reflecting the same factor as for net revenues.
Full-Year
Financial Summary
- Years Ended
December
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
$
6,393
$
6,201
3.1
%
8.6
%
192
(341
)
—
325
208
—
Operating Income
$
2,878
$
2,539
13.4
%
25.1
%
339
(298
)
—
325
59
253
Adjustments (1)
(3
)
(250
)
98.8
%
98.8
%
247
—
—
—
—
247
Adjusted Operating Income
$
2,881
$
2,789
3.3
%
14.0
%
92
(298
)
—
325
59
5
Adjusted Operating Income
Margin
45.1
%
45.0
%
0.1
pp
2.2
pp
(1) See Schedule 11 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, for additional detail.
Net revenues increased by 8.6% on an organic basis, reflecting:
a favorable pricing variance and favorable volume/mix, mainly
driven by higher HTU volume, partly offset by lower cigarette
volume.
Adjusted operating income increased by 14.0% on an organic
basis, a favorable pricing variance and favorable volume/mix,
mainly driven by higher HTU volume, partly offset by lower
cigarette volume, while lower manufacturing costs were largely
offset by higher marketing, administration and research costs.
AMERICAS REGION
Total Market, PMI Shipment & Market Share
Commentaries
Fourth-Quarter The estimated total market for cigarettes
and HTUs in the Region, excluding the U.S., decreased by 1.4% to
49.1 billion units, primarily reflecting a decline in the cigarette
market. The decrease in the estimated total market was mainly due
to Colombia (down by 12.3%), and Canada (down by 7.7%), partly
offset by Brazil (up by 2.1%), and Argentina (up by 1.2%).
Full-Year The estimated total market for cigarettes and
HTUs in the Region, excluding the U.S., decreased by 1.9% to 185.1
billion units, primarily reflecting a decline for cigarettes. The
decrease in the estimated total market was mainly due to Argentina
(down by 8.4%) and Canada (down by 12.3%), partly offset by Brazil
(up by 6.8%).
Our Regional market share, excluding the U.S., was flat at
33.7%.
PMI Shipment Volume
Fourth-Quarter
Full-Year
(million units)
2024
2023
Change
2024
2023
Change
Cigarettes
17,172
17,468
(1.7)%
61,644
63,314
(2.6)%
Heated Tobacco Units
150
202
(25.7)%
622
585
6.3%
Total Americas
17,322
17,670
(2.0)%
62,266
63,899
(2.6)%
Note: Sum may not foot due to
rounding.
Americas Oral SFP1
Fourth-Quarter
Full-Year
2024
2023
Change
2024
2023
Change
PMI Shipment Volume (million
cans)
Nicotine Pouches
165.1
116.3
42.0%
581.4
384.8
51.1%
Moist Snuff
32.0
31.2
2.4%
134.6
133.7
0.6%
Snus
0.7
0.8
(9.0)%
2.9
4.0
(25.8)%
Total Americas
197.8
148.3
33.4%
718.9
522.5
37.6%
(1) Excluding U.S. chew;
Note: Volumes of other oral SFP introduced
in Q3'24 are not material. Sum may not foot due to rounding.
Fourth-Quarter PMI's total cigarette and HTU shipment
volume in the Region decreased by 2.0% to 17.3 billion units,
mainly due to Canada (down by 20.2%) and Mexico (down by 2.4%),
partly offset by Argentina (up by 2.5%).
Oral products shipments increased by 33.4%, predominantly driven
by ZYN nicotine pouches in the U.S.
Cigar shipment volume increased by 2.4%, while gross profit grew
high-single digits.
Full-Year PMI's total cigarette and HTU shipment volume
in the Region decreased by 2.6% to 62.3 billion units, mainly due
to Argentina (down by 8.1%), partly offset by Brazil (up by
8.5%).
Oral products shipments increased by 37.6%, predominantly driven
by ZYN nicotine pouches in the U.S.
Cigar shipment volume decreased by 11%, while gross profit grew
mid-single digits.
Financial Summary
Fourth-Quarter
Financial Summary
- Quarters Ended
December
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
$
1,261
$
1,075
17.3
%
21.0
%
186
(40
)
—
87
141
(2
)
Operating Income
$129
$58
+100
%
-(100
)%
71
129
—
87
137
(282
)
Adjustments (1)
(210
)
(71
)
-(100
)%
-(100
)%
(139
)
—
—
—
—
(139
)
Adjusted Operating Income
$339
$129
+100
%
62.8
%
210
129
—
87
137
(142
)
Adjusted Operating Income
Margin
26.9
%
12.0
%
14.9
pp
4.1
pp
(1) See Schedule 10 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, for additional detail.
Net revenues increased by 21.0% on an organic basis, primarily
reflecting: favorable volume/mix, predominantly driven by nicotine
pouches in the U.S., as well as a favorable pricing variance,
partly offset by lower cigarette volume and unfavorable cigarette
mix outside of the U.S.
Adjusted operating income increased by 62.8% on an organic
basis, mainly reflecting: favorable volume/mix and price variance,
mainly due to the same factors as for net revenues; partly offset
by higher marketing, administration and research costs, including
incremental investment in the U.S.
Full-Year
Financial Summary
-
Years
Ended
December
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
$
4,534
$
3,807
19.1
%
19.3
%
727
(9
)
—
233
505
(2
)
Operating Income
$548
$582
(5.8
)%
(41.1
)%
(34
)
205
—
233
470
(942
)
Adjustments (1)
(788
)
(297
)
-(100
)%
-(100
)%
(491
)
—
—
—
—
(491
)
Adjusted Operating Income
$
1,336
$879
52.0
%
28.7
%
457
205
—
233
470
(451
)
Adjusted Operating Income
Margin
29.5
%
23.1
%
6.4
pp
1.8
pp
(1) See Schedule 11 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, for additional detail.
Net revenues increased by 19.3% on an organic basis, primarily
reflecting: favorable volume/mix, mainly due to growth of ZYN
nicotine pouches in the U.S., partly offset by cigarette volume
declines outside of the U.S.; and favorable cigarette and ZYN
pricing.
Adjusted operating income increased by 28.7% on an organic
basis, mainly reflecting: favorable volume/mix and favorable price
variance, mainly due to the same factors as for net revenues,
partly offset by higher marketing, administration and research
costs, including incremental investment in the U.S.
WELLNESS AND HEALTHCARE
Fourth-Quarter
Financial Summary
- Quarters Ended
December
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
$87
$69
26.1
%
23.2
%
18
2
—
16
—
—
Operating Income / (Loss)
$(52
)
$(62
)
16.1
%
17.7
%
10
(1
)
—
16
—
(5
)
Adjustments (1)
(5
)
(15
)
67.7
%
67.7
%
10
—
—
—
—
10
Adjusted Operating Income /
(Loss)
$(48
)
$(47
)
(2.1
)%
—
%
(1
)
(1
)
—
16
—
(14
)
Adjusted Operating Income / (Loss)
Margin
(55.2
)%
(68.1
)%
12.9
pp
12.8
pp
(1) See Schedule 10 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, for additional detail.
Net revenues increased by 23.2% on an organic basis. The
adjusted operating loss of $48 million was primarily due to R&D
costs.
Full-Year
Financial Summary
- Years Ended
December
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
$333
$306
8.8
%
7.8
%
27
3
—
26
—
(2
)
Operating Income / (Loss)
$(391
)
$(870
)
55.1
%
55.4
%
479
(3
)
—
26
—
456
Adjustments (1)
(271
)
(738
)
63.2
%
63.2
%
467
—
—
—
—
467
Adjusted Operating Income /
(Loss)
$(120
)
$(132
)
9.1
%
11.4
%
12
(3
)
—
26
—
(10
)
Adjusted Operating Income / (Loss)
Margin
(36.0
)%
(43.1
)%
7.1
pp
7.6
pp
(1) See Schedule 11 in Exhibit 99.2 to the
Form 8-K dated February 6, 2025, for additional detail.
Net revenues increased by 7.8% on an organic basis. The adjusted
operating loss of $120 million was primarily due to R&D and
administration costs.
Philip Morris International: Delivering a Smoke-Free
Future
Philip Morris International 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 $14 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. Following a robust science-based review, the U.S.
Food and Drug Administration has authorized the marketing of
Swedish Match’s General snus and ZYN nicotine pouches and versions
of PMI’s IQOS devices and consumables - the first-ever such
authorizations in their respective categories. Versions of IQOS
devices and consumables and General snus also obtained the
first-ever Modified Risk Tobacco Product authorizations from the
FDA. As of December 31, 2024, PMI's smoke-free products were
available for sale in 95 markets, and PMI estimates that 38.6
million adults around the world use PMI's smoke-free products. The
smoke-free business accounted for approximately 39% of PMI’s total
full-year 2024 net revenues. With a strong foundation and
significant expertise in life sciences, PMI has a long-term
ambition to expand into wellness and healthcare areas and aims to
enhance life through the delivery of seamless health experiences.
References to “PMI”, “we”, “our” and “us” mean Philip Morris
International Inc., and its subsidiaries. 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; business plans and strategies; plans and
strategies related to the CCAA proceedings; the likelihood and
impact to PMI of the proposed CCAA plan; and the likelihood and
impact of RBH remaining deconsolidated. 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,
Quarterly Report on Form 10-Q for the third quarter ended September
30, 2024, and the Form 10-K for the fourth quarter and year ended
December 31, 2024, which will be filed later today. 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 February 6, 2025, and at
www.pmi.com/2024Q4earnings. 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, restructuring
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.
Diluted EPS
reconciliation
Fourth-Quarter
Full Year
2024
2023
2024
2023
$(0.38
)
$1.41
Reported Diluted EPS
$4.52
$5.02
0.01
—
Restructuring charges
0.10
0.06
—
—
Impairment of goodwill and other
intangibles
0.01
0.44
0.11
0.07
Amortization of intangibles
0.40
0.25
—
0.02
Charges related to the war in
Ukraine
—
0.03
0.05
—
Megapolis localization tax
impact
0.05
—
0.14
(0.14
)
Income tax impact associated with
Swedish Match AB financing
0.14
(0.11
)
—
—
Egypt sales tax charge
0.03
—
—
—
Loss on sale of Vectura Group
0.13
—
1.49
—
Impairment related to the RBH
equity investment
1.49
—
0.13
—
Fair value adjustment for equity
security investments
(0.27
)
(0.02
)
—
—
Tax items
(0.03
)
0.11
—
—
Other adjustments impacting 2023
only*
—
0.23
$1.55
$1.36
Adjusted Diluted EPS
$6.57
$6.01
0.06
Less: Currency
(0.38
)
$1.49
$1.36
Adjusted Diluted EPS,
excluding Currency
$6.95
$6.01
(*) Represents adjustments impacting 2023
only: South Korea indirect tax charge (11 cents), Termination of
agreement with Foundation for a Smoke-Free World (7 cents),
Termination of distribution arrangement in the Middle East (4
cents), Swedish Match AB acquisition accounting related items (1
cent)
Note: The Income tax impact associated
with Swedish Match AB financing was due to a deferred tax impact
for unrealized foreign currency gains and losses on intercompany
loans related to the Swedish Match acquisition financing reflected
in the consolidated statements of earnings, while the underlying
pre-tax foreign currency movements fully offset in the consolidated
statements of earnings and were reflected as currency translation
adjustments in the consolidated statements of stockholders'
(deficit) equity.
Appendix 1
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Key Market Data
Quarters Ended December
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)
663.0
650.2
2.0
188.5
185.1
1.9
152.8
151.1
1.1
35.7
34.0
5.1
28.9
28.5
0.4
5.4
4.9
0.5
Europe
France
6.3
7.1
(11.7)
2.4
2.8
(13.5)
2.4
2.7
(13.5)
—
—
—
41.8
43.1
(1.3)
0.6
0.7
(0.1)
Germany(3)
16.2
16.0
1.5
6.6
6.6
(0.5)
5.4
5.7
(3.8)
1.1
1.0
19.0
38.4
38.9
(0.5)
6.6
5.6
1.0
Italy(3)
17.9
18.2
(1.8)
10.1
10.6
(4.6)
6.4
6.5
(2.5)
3.7
4.1
(7.9)
53.1
53.7
(0.6)
16.5
17.2
(0.7)
Poland(3)
13.6
13.1
3.8
6.2
5.6
10.4
4.8
4.3
9.6
1.4
1.3
13.4
45.2
43.8
1.4
9.5
9.9
(0.4)
Spain
11.0
10.6
4.1
2.8
2.9
(3.4)
2.5
2.6
(6.9)
0.4
0.3
27.6
29.9
28.8
1.1
3.5
2.4
1.1
SSEA, CIS & MEA
Egypt
22.5
19.3
16.1
5.4
6.2
(12.8)
4.9
5.6
(12.0)
0.5
0.6
(20.1)
24.5
31.3
(6.8)
1.7
1.9
(0.2)
Indonesia(4)
74.1
72.7
1.9
20.3
20.5
(1.1)
19.9
20.3
(1.9)
0.4
0.2
90.0
27.4
28.2
(0.8)
0.5
0.3
0.2
Philippines
10.6
10.7
(1.4)
5.3
5.8
(8.7)
5.2
5.7
(9.1)
0.1
0.1
18.9
49.7
53.7
(4.0)
0.7
0.6
0.1
Russia
54.8
52.4
4.5
18.0
16.5
9.1
12.5
11.4
9.8
5.5
5.1
7.7
32.9
31.3
1.6
8.7
8.3
0.4
Turkey
38.6
36.2
6.6
20.4
18.7
9.3
20.4
18.7
9.3
—
—
—
52.9
51.5
1.4
—
—
—
EA, AU & PMI DF
Australia
1.1
1.6
(26.5)
0.4
0.5
(29.6)
0.4
0.5
(29.6)
—
—
—
31.3
32.7
(1.4)
—
—
—
Japan(2)
38.8
37.9
2.6
13.7
13.9
(1.9)
3.9
3.9
(0.2)
9.8
10.0
(2.6)
41.8
39.9
1.9
30.5
27.6
2.9
South Korea
17.6
17.8
(1.3)
3.4
3.4
(0.2)
2.0
2.1
(6.4)
1.4
1.3
9.6
19.5
19.3
0.2
8.2
7.5
0.7
Americas
Argentina
7.2
7.1
1.2
4.5
4.4
2.5
4.5
4.4
2.5
—
—
—
62.5
61.7
0.8
—
—
—
Mexico
8.6
8.8
(2.2)
5.6
5.7
(2.4)
5.5
5.7
(2.7)
0.1
—
—
65.0
65.1
(0.1)
0.7
0.5
0.2
(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 (see Glossary for definition); Total
Market is based on reported IMS
(4) 2024 includes 0.6 billion units of
cigarettes shipment volume under an arrangement where PMI acts as
brand management and fulfillment services agent
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%
Appendix 2
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Key Market Data
Years Ended December
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)
2,617.9
2,579.4
1.5
756.6
738.2
2.5
616.8
612.9
0.6
139.7
125.3
11.6
28.7
28.3
0.4
5.2
4.7
0.5
Europe
France
26.1
29.8
(12.5)
10.7
13.0
(17.3)
10.5
12.8
(17.3)
0.2
0.2
(19.9)
41.2
42.5
(1.3)
0.6
0.7
(0.1)
Germany(3)
69.2
69.0
0.4
26.7
26.5
0.9
22.4
23.3
(4.0)
4.3
3.1
36.9
38.7
39.0
(0.3)
6.2
5.3
0.9
Italy(3)
73.6
73.3
0.5
39.1
39.7
(1.4)
27.3
27.3
—
11.8
12.4
(4.6)
53.6
53.6
—
16.9
16.8
0.1
Poland(3)
58.0
56.7
2.3
25.6
23.7
7.9
20.1
18.7
8.0
5.4
5.0
7.6
43.9
41.9
2.0
9.1
9.0
0.1
Spain
44.3
43.6
1.6
12.7
12.9
(1.2)
11.4
11.8
(3.0)
1.3
1.1
18.7
29.4
29.3
0.1
2.9
2.3
0.6
SSEA, CIS & MEA
Egypt
82.5
74.2
11.3
23.9
24.3
(1.7)
22.3
23.0
(3.0)
1.6
1.3
21.8
28.9
32.8
(3.9)
1.8
1.7
0.1
Indonesia(4)
295.5
292.2
1.1
80.8
84.0
(3.7)
79.6
83.4
(4.5)
1.2
0.6
+100
27.4
28.7
(1.3)
0.4
0.2
0.2
Philippines
41.0
42.9
(4.3)
21.1
23.8
(11.4)
20.8
23.5
(11.8)
0.3
0.2
29.1
51.3
55.4
(4.1)
0.7
0.5
0.2
Russia
216.5
203.4
6.4
69.9
64.8
7.9
51.4
47.9
7.4
18.5
16.9
9.5
32.3
31.8
0.5
8.6
8.0
0.6
Turkey
150.5
137.4
9.5
78.2
69.0
13.4
78.2
69.0
13.4
—
—
—
52.0
50.2
1.8
—
—
—
EA, AU & PMI DF
Australia
5.1
7.2
(28.5)
1.8
2.5
(28.5)
1.8
2.5
(28.5)
—
—
—
34.8
34.8
—
—
—
—
Japan(2)
151.1
149.0
1.4
64.8
60.9
6.4
16.5
17.9
(7.5)
48.3
43.0
12.2
41.3
39.6
1.7
29.8
26.7
3.1
South Korea
70.5
72.0
(2.2)
14.0
14.0
(0.1)
8.3
8.9
(6.7)
5.7
5.1
11.4
19.9
19.5
0.4
8.1
7.1
1.0
Americas
Argentina
26.4
28.8
(8.4)
16.4
17.8
(8.1)
16.4
17.8
(8.1)
—
—
—
62.1
61.9
0.2
—
—
—
Mexico
29.5
30.0
(1.7)
18.5
18.9
(2.2)
18.3
18.8
(2.6)
0.2
0.1
54.1
62.6
63.0
(0.4)
0.7
0.5
0.2
(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 (see Glossary for definition); Total
Market is based on reported IMS
(4) 2024 includes 0.6 billion units of
cigarettes shipment volume under an arrangement where PMI acts as
brand management and fulfillment services agent
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/20250205873542/en/
Philip Morris International Investor Relations: Stamford,
CT: +1 (203) 905 2413 Lausanne, Switzerland: +41 582 424 666 Email:
InvestorRelations@pmi.com
Media: Lausanne: +41 582 424 500 Email: David.Fraser@pmi.com
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