Philip Morris Q4 2020 Earnings Report
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
Philip Morris
Philip Morris
Philip Morris Revenue by Segment
Philip Morris 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.
- An effective tax rate, excluding discrete tax events, of around 22%.
- No share repurchases
- First-quarter reported diluted EPS of around $1.40, including a favorable currency impact, at prevailing exchange rates, of around $0.09 per share, notably reflecting:
Revenue & Expenses
Visualization of income flow from segment revenue to net income