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Sep 30, 2022
Philip Morris Q3 2022 Earnings Report
Reported diluted EPS of $1.34, adjusted diluted EPS of $1.53 and pro forma (excluding Russia and Ukraine) adjusted diluted EPS of $1.33, representing currency-neutral growth of 8.3%.
Key Takeaways
Philip Morris International Inc. (PMI) announces its 2022 third-quarter results, with a strong performance driven by IQOS momentum and a robust combustible tobacco portfolio. The company is raising the low end of its full-year pro forma growth outlook for adjusted net revenues and continues to expect full-year pro forma adjusted diluted EPS growth of 10% to 12%, excluding currency.
Net revenues from smoke-free products accounted for 30.1% of total net revenues, or 29.2% on a pro forma basis.
Market share for heated tobacco units (HTUs) in IQOS markets up by 1.3 points to 7.7% on a pro forma basis
Pro forma total IQOS users at quarter-end estimated at approximately 19.5 million (up by 3.6 million or 22% versus September 30, 2021), of which approximately 13.5 million had switched to IQOS and stopped smoking
Increased regular quarterly dividend by 1.6% to $1.27 per share, or an annualized rate of $5.08 per share
Philip Morris
Philip Morris
Philip Morris Revenue by Segment
Philip Morris Revenue by Geographic Location
Revenue by Segment
Combustible 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 targets 2022 full-year reported diluted EPS of $5.47 to $5.62, adjusted diluted EPS of $5.81 to $5.96 and pro forma adjusted diluted EPS of $5.22 to $5.33, representing currency-neutral growth of 10% to 12%.
Positive Outlook
- The full contribution of the company's operations in Russia and Ukraine for the entire year.
- No asset impairment costs or further other charges related to the company's operations in Russia or Ukraine.
- No contribution from the operations of Swedish Match in 2022 following the assumed transaction close in the fourth quarter and no further costs associated with the Swedish Match offer.
- No impact on net earnings or operating cash flow related to PMI's agreement to obtain the full rights to IQOS in the U.S., as PMI is currently evaluating the impact of the agreement on the company's consolidated financial statements.
- A continued gradual improvement in PMI's duty-free business outside Asia.
Challenges Ahead
- The impact of delayed production capacity build-up for ILUMA HTUs due to 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 flat to +1%.
- Pro forma total cigarette and HTU shipment volume growth for PMI of approximately 2% to 3%, compared to approximately 1.5% to 2.5% previously.
- Pro forma HTU shipment volume of 89 to 91 billion units compared to 90 to 92 billion units previously (despite continued strong expected in-market sales volume growth), reflecting the impact of global supply chain disruptions, as well as production constraints for ILUMA HTU consumables in the face of better-than-anticipated performance for ILUMA.
- A pro forma adjusted operating income margin change of -50 basis points to flat on an organic basis (compared to flat to +50 basis points previously).