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Sep 30, 2024
Philip Morris Q3 2024 Earnings Report
Reported exceptionally strong performance with record quarterly net revenues and earnings per share.
Key Takeaways
Philip Morris International reported strong Q3 2024 results, with record quarterly net revenues and EPS. The company raised its full-year growth outlook for adjusted diluted EPS to a range of 14% to 15%, excluding currency.
Smoke-free business accounted for 38% of total net revenues and 40% of gross profit.
IQOS continues strengthening its overall position as the second largest nicotine ‘brand’ in markets where present.
Oral SFP shipment volume increased by 24.7% in cans, fueled by ZYN nicotine pouch growth in the U.S.
Combustibles net revenues grew by 5.2%, driven by another quarter of high single-digit pricing and resilient industry volumes.
Philip Morris
Philip Morris
Forward Guidance
Philip Morris International raised its full-year growth outlook for adjusted diluted EPS to a range of 14% to 15%, excluding currency.
Positive Outlook
- Total cigarette, HTU and oral smoke-free product shipment volume growth for PMI of 2% to 3% driven by smoke-free products.
- HTU adjusted IMS to deliver around 13% growth for the full year, and HTU shipment volumes of around 140 billion units.
- Nicotine pouch shipment volume in the U.S. of 570 to 580 million cans.
- Net revenue growth of around 9.5% on an organic basis.
- Organic operating income growth of 14% to 14.5%.
Challenges Ahead
- Factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.
- No earnings impact from potential impairments of equity holdings, including potential impairment of PMI’s Canadian affiliate, Rothmans, Benson & Hedges Inc.
- Full-year amortization of acquired intangibles of $0.42 per share, which includes an estimate of amortization of IQOS commercialization rights in the U.S. following the closing of the agreement to end our commercial relationship with Altria Group, Inc. covering IQOS in the U.S. effective May 1, 2024.
- Net financing costs of approximately $1.1 to $1.2 billion.
- An effective tax rate, excluding discrete tax events, of approximately 21% to 22%.