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Dec 31, 2022
Philip Morris Q4 2022 Earnings Report
Philip Morris International's financial performance was marked by growth in smoke-free products and strategic acquisitions.
Key Takeaways
Philip Morris International (PMI) reported its Q4 and Full Year 2022 results, demonstrating growth in key areas despite a challenging operating environment. The company's focus on smoke-free products is paying off, with this category now accounting for a significant portion of total net revenues. Strategic acquisitions, such as Swedish Match, are expected to further drive the company's transformation.
Total shipment volume increased by 1.2%, driven by a 26.1% increase in HTU shipments.
Net revenues from smoke-free products accounted for 36.0% of total net revenues.
Total IQOS users at quarter-end estimated at approximately 24.9 million.
PMI announced a long-term collaboration with KT&G to commercialize KT&G’s innovative smoke-free devices and consumables on an exclusive, worldwide basis (excluding South Korea).
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.com Forward Guidance
PMI forecasts for the full year 2023, including an expected organic top-line growth and currency-neutral adjusted diluted EPS growth, despite inflationary pressures and transitory impacts related to ILUMA deployment.
Positive Outlook
- Organic top-line growth of 7% to 8.5%.
- Currency-neutral adjusted diluted EPS growth of 7% to 9%.
- Continued strong growth from Swedish Match’s existing operations, underpinned by strong shipment volume growth for ZYN in the U.S.
- HTU shipment volume of 125 to 130 billion units, reflecting an acceleration in growth versus 2022 on a total PMI basis.
- Wellness and Healthcare segment net revenues of around $300 million.
Challenges Ahead
- Continued global inflationary pressures, primarily impacting cost of sales for the combustible tobacco business.
- The continued transitory impacts associated with the ILUMA roll-out, including the margin impact of accelerated device replacements and higher initial costs of devices and consumables.
- Incremental investments to drive future growth, including the commercialization of ILUMA and around $150 million with a broadly even split between the U.S. and the wellness and healthcare segment.
- Adjusted operating income margin decline of 50 to 150 basis points on an organic basis.
- Wellness and Healthcare segment with an adjusted operating loss of around $150 million, primarily due to investments in research and development.
Revenue & Expenses
Visualization of income flow from segment revenue to net income