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Jun 30, 2024
Philip Morris Q2 2024 Earnings Report
Reported excellent second-quarter and first-half results and raised full year guidance.
Key Takeaways
Philip Morris International's smoke-free business continued its momentum in Q2 2024, accounting for 38.1% of total net revenues. The company raised its full-year guidance despite currency headwinds, driven by strong underlying performance and proactive measures across all categories.
Smoke-free business accounted for 38.1% of total net revenues, up by 2.7pp versus second-quarter last year.
Total IQOS users at quarter-end were estimated at 30.8 million, up by 1.9 million versus December 2023.
ZYN nicotine pouch shipments in the U.S. reached 135.1 million cans, representing growth of 50.3% versus prior year.
Net revenues grew by 1.2% (organically by 4.8%) due to high single-digit pricing and resilient industry volumes.
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.comAmericas Revenue
CapyFin.com Forward Guidance
Philip Morris International raised its full-year guidance for 2024, with adjusted diluted EPS expected to be in the range of $6.33 to $6.45. This forecast includes assumptions for industry volume, shipment volume growth, net revenue growth, and operating cash flow.
Positive Outlook
- A broadly stable total international industry volume for cigarettes and HTUs, excluding China and the U.S.
- Total cigarette, HTU and oral smoke-free product shipment volume growth for PMI of 1% to 2% driven by smoke-free products.
- Net revenue growth of 7.5% to 9% on an organic basis.
- Organic operating income growth of 11% to 13%.
- Operating cash flow of approximately $11 billion at prevailing exchange rates, subject to year-end working capital requirements.
Challenges Ahead
- A second half acceleration in HTU adjusted IMS to deliver around 13% growth for the full year, and HTU shipment volumes of around 140 billion units. This assumes no volumes in Taiwan and a slightly greater impact from consumer adjustment to the EU characterizing flavor ban than previously assumed.
- Nicotine pouch shipment volume in the U.S. of 560 to 580 million cans.
- An effective tax rate, excluding discrete tax events, of approximately 21% to 22%.
- Capital expenditures of approximately $1.3 to $1.4 billion, including further investments in ZYN capacity in the U.S.
- No share repurchases in 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income