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Sep 30, 2020
Philip Morris Q3 2020 Earnings Report
Reported diluted EPS increased and full-year reported diluted EPS forecast raised.
Key Takeaways
Philip Morris International Inc. reported stronger-than-anticipated results in the third quarter, with adjusted diluted EPS growth of 5.6% on an organic basis. The sustained momentum of IQOS was excellent, with an estimated 16.4 million total users at the end of September and smoke-free products accounting for nearly one-fourth of total net revenues in the quarter.
Reported diluted EPS of $1.48, up by 21.3%; up by 28.7%, excluding currency.
Adjusted diluted EPS of $1.42, down by 0.7%; up by 5.6% on an organic basis.
Cigarette and heated tobacco unit shipment volume down by 7.6% (reflecting cigarette shipment volume down by 9.8%, and heated tobacco unit shipment volume up by 18.7% to 19.0 billion units).
Total IQOS users at quarter-end estimated at approximately 16.4 million, of which approximately 11.7 million have stopped smoking and switched to IQOS.
Philip Morris
Philip Morris
Philip Morris Revenue by Geographic Location
Revenue 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
PMI raises its full-year 2020 reported diluted EPS forecast to a range of $5.03 to $5.08, at prevailing exchange rates.
Positive Outlook
- No recurrence of national lockdowns in PMI's key international markets during the remainder of 2020.
- Lack of near-term recovery in PMI's duty-free business given the uncertain outlook for global travel, with current dynamics persisting at least through year end.
- Full enforcement of minimum retail selling price requirements in Indonesia by the end of 2020, at the earliest.
- An estimated total international industry volume decline, excluding China and the U.S., of approximately 7% to 8%.
- A total cigarette and heated tobacco unit shipment volume decline for PMI of approximately 8% to 9% on a like-for-like basis.
Challenges Ahead
- An effective tax rate, excluding discrete tax events, of 22% to 23%, compared to approximately 22% assumed previously.
- Capital expenditures of approximately $0.6 billion, compared to approximately $0.7 billion assumed previously.
- Broadly stable underlying consumption trends compared to the third quarter of 2020
- The impact of certain costs that were initially planned for the third quarter of 2020 but are now expected in the fourth quarter.
- No share repurchases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income