Loading...
•
Mar 31, 2024
Philip Morris Q1 2024 Earnings Report
Philip Morris' first quarter performance in 2024 showed strong top-line growth and significant margin expansion, leading to an increase in their full-year currency-neutral guidance.
Key Takeaways
Philip Morris International reported a strong first quarter in 2024, with reported diluted EPS growing by 7.8% to $1.38 and adjusted diluted EPS growing by 8.7% to $1.50 (23.2% excluding currency effects). The company's smoke-free business continues to drive growth, accounting for 39% of total net revenues, with significant increases in net revenue and gross profit. Strong pricing across markets also fueled growth in the combustibles category.
Smoke-free business accounted for 39% of total net revenues, with net revenues increasing by 21.1% and gross profit by 31.8%.
IQOS continues to strengthen its market position, exceeding 10% market share in Europe and increasing by over 3 percentage points to over 29% in Japan.
Oral smoke-free product shipment volume increased by 40.0%, driven by ZYN nicotine pouch growth in the U.S., where shipment volume reached 131.6 million cans, representing growth of 79.7%.
Combustibles net revenues grew by 3.5%, driven by strong pricing across markets, with Marlboro gaining 0.4 percentage points in category share.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Philip Morris International provided full-year 2024 forecasts, including a reported diluted EPS of $5.70 to $5.82. The forecast assumes international industry volume decline for cigarettes and HTUs, excluding China and the U.S., of -2% to flat, and net revenue growth of 7% to 8.5% on an organic basis.
Positive Outlook
- 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.
- Organic operating income growth of 10% to 12%.
- 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.
Challenges Ahead
- An estimated total international industry volume decline for cigarettes and HTUs, excluding China and the U.S., of -2% to flat.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...