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Dec 31, 2023
Philip Morris Q4 2023 Earnings Report
Philip Morris International reported strong Q4 2023 results, with smoke-free products reaching nearly 40% of total net revenues.
Key Takeaways
Philip Morris International (PMI) reported a strong finish to 2023, with smoke-free products accounting for 39.3% of total net revenues. Adjusted diluted EPS was $1.36, representing a 12.2% increase excluding currency impacts.
Smoke-free products accounted for 39.3% of total net revenues.
Adjusted in-market sales volume for HTUs increased by an estimated 13.9%.
Total IQOS users at quarter-end increased by 1.2 million versus September 2023.
ZYN nicotine pouch shipment volume in the U.S. was 116.3 million cans, representing growth of 78.2% versus fourth-quarter 2022 Swedish Match shipments of 65.3 million cans.
Forward Guidance
PMI expects another year of excellent performance in 2024, underpinned by an acceleration in organic smoke-free net revenue and profit growth.
Positive Outlook
- An estimated total international industry volume decline for cigarettes and HTUs, excluding China and the U.S., of -2% to flat.
- Total cigarette, HTU and oral smoke-free product shipment volume growth for PMI of flat to +1% driven by smoke-free products.
- 14% to 16% adjusted in-market sales volume growth for HTUs, including an approximate 2 billion units adverse impact from consumer adjustment to the EU characterizing flavor ban, and essentially no growth in Russia, resulting in HTU shipment volumes of more than 140 billion units.
- Nicotine pouch shipment volume in the U.S. of approximately 520 million cans.
- Net revenue growth of 6.5% to 8% on an organic basis.
Challenges Ahead
- Organic operating income growth of 8% to 9.5%.
- Broadly unchanged net revenue and adjusted operating loss in Wellness and Healthcare segment.
Historical Earnings Impact
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