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Mar 31, 2022
Philip Morris Q1 2022 Earnings Report
Delivered reported diluted EPS of $1.50 and adjusted diluted EPS of $1.56, representing currency-neutral growth of 14.0%.
Key Takeaways
Philip Morris International Inc. (PMI) reported a strong first quarter performance in 2022, with organic net revenue and currency-neutral adjusted diluted EPS growth exceeding expectations, driven by the re-acceleration of the IQOS business and the robust performance of the combustible business.
Net revenues from smoke-free products accounted for 31.2% of total net revenues, or 30.4% on a pro forma basis.
Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.1 points to 7.5% on a pro forma basis.
Pro forma total IQOS users at quarter-end estimated at approximately 17.9 million (up by more than one million versus December 31, 2021), of which 12.7 million had switched to IQOS and stopped smoking.
Repurchased approximately 2.0 million shares of common stock for $199 million, at an average price of $100.95 per share, representing total repurchases of approximately $1 billion since the start of the current three-year program in July 2021.
Philip Morris
Philip Morris
Philip Morris Revenue by Segment
Philip Morris Revenue by Geographic Location
Revenue by Segment
Combustible Products Revenue
CapyFin.comSmoke-Free Products Revenue
CapyFin.comRevenue by Geographic Location
European Union Revenue
CapyFin.comSouth & SE Asia, CIS, MEA Revenue
CapyFin.comEast Asia & Australia Revenue
CapyFin.com Forward Guidance
PMI expects to deliver robust top- and bottom-line growth this year on a pro forma adjusted basis, including full-year adjusted diluted EPS growth of 9% to 11%, excluding currency.
Positive Outlook
- The company's operations in Russia and Ukraine for the first quarter of 2022 only, with no further contribution as of April 1, 2022
- No asset impairment costs or further charges related to the company's operations in Russia or Ukraine
- A continued gradual improvement in PMI's duty-free business outside Asia, with no meaningful recovery in Asia
- An improving IQOS device supply situation, with some remaining uncertainty on the timing of full IQOS availability
- A pro forma adjusted operating income margin change of flat to +100 basis points on an organic basis
Challenges Ahead
- Continuing uncertainty over the pace of the ongoing recovery from pandemic-related effects on the operating environment, notably in select geographies in PMI's South & Southeast Asia Region
- The impact on TEREA production capacity build-up of the decision to cancel manufacturing plans in Russia
- A pro forma estimated total international industry volume change, excluding China and the U.S., of approximately -1% to flat
- Increased inflation in raw material and energy prices, and additional supply chain costs due to war-related disruptions
- An effective tax rate, excluding discrete tax events, of 21% to 22%
Revenue & Expenses
Visualization of income flow from segment revenue to net income