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Mar 31, 2025
Philip Morris Q1 2025 Earnings Report
Philip Morris reported strong Q1 2025 results with robust growth in smoke-free products and margin expansion.
Key Takeaways
Philip Morris delivered a solid Q1 2025 with notable gains in adjusted EPS and revenue, driven by its smoke-free portfolio, which now represents a substantial share of total revenues and gross profit.
Adjusted EPS rose to $1.69, with reported EPS at $1.72.
Revenue increased to $9.3B, supported by smoke-free products' 20.4% organic growth.
Operating income surged to $3.544B, up 16.4% year-over-year.
Heated tobacco unit shipment volume grew 11.9% to 37.1B units.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
PMI expects double-digit growth in adjusted diluted EPS for FY2025, driven by smoke-free products and global expansion.
Positive Outlook
- Adjusted EPS for 2025 expected at $7.36 - $7.49.
- Smoke-free product volumes expected to grow 12% to 14%.
- Nicotine pouch shipments in the U.S. forecast to grow 38% to 45%.
- Operating cash flow expected to exceed $11 billion.
- Targeting improved net debt to EBITDA ratio by end of 2026.
Challenges Ahead
- Forecast excludes restructuring charges for Germany plant optimization.
- Ongoing currency volatility could impact results.
- No share repurchases planned for 2025.
- Higher marketing and R&D expenses expected.
- Potential impact from tax-related payments in 2025 (~$1B).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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