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Dec 31, 2020
Philip Morris Q4 2020 Earnings Report
Delivered a robust business performance despite unprecedented headwinds, supported by stronger-than-anticipated fourth quarter results.
Key Takeaways
Philip Morris International Inc. reported a decrease in net revenues by 3.5% on an organic basis, but an increase in operating income by 17.8% excluding currency. Adjusted operating income increased by 1.7% on an organic basis. Reported diluted EPS was $1.27, up 22.1%.
Reported diluted EPS of $1.27, up by 22.1%; up by 26.9%, excluding currency
Adjusted diluted EPS of $1.26, up by 3.3%; up by 7.4% on an organic basis
Net revenues down by 3.5%; down by 3.5% on an organic basis
Adjusted operating income margin of 38.5%, up by 2.0 points on an organic basis
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the full year 2021, the company is expecting a significant recovery, with mid-single-digit organic net revenue growth—driven by the growing contribution of IQOS—and further efforts on cost efficiencies driving an acceleration in forecasted adjusted diluted EPS growth to a range of 9% to 11% on the same basis.
Positive Outlook
- A gradual improvement in the general operating environment, with potential volatility around the duration and effects of pandemic-related mobility restrictions across PMI's key markets.
- A total cigarette and heated tobacco unit shipment volume progression for PMI of approximately -2% to +1%.
- Heated tobacco unit shipment volume of 90 to 100 billion units.
- Net revenue growth of approximately 4% to 7% on an organic basis.
- An increase in adjusted operating income margin of at least 150 basis points on an organic basis.
Challenges Ahead
- Lack of near-term recovery in PMI's duty-free business given the uncertain outlook for global travel, with current dynamics persisting through year end.
- An estimated total international industry volume progression, excluding China and the U.S., of approximately -3% to flat.
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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