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Dec 31, 2024
Philip Morris Q4 2024 Earnings Report
Philip Morris International's Q4 2024 results were announced, showcasing growth in smoke-free products and combustibles, with smoke-free products exceeding 40 billion units for the first time.
Key Takeaways
Philip Morris International reported strong Q4 2024 results, driven by growth in smoke-free products and combustibles. The smoke-free business accounted for 40% of total net revenues and approximately 42% of gross profit. Total net revenues reached $9.7 billion, with a diluted EPS of $(0.38) and an adjusted diluted EPS of $1.55.
Quarterly shipments of HTU and oral smoke-free products exceeded 40 billion units.
Smoke-free business accounted for 40% of total net revenues and around 42% of gross profit.
IQOS continues to strengthen its position as the second largest nicotine ‘brand’ in markets where present.
ZYN nicotine pouch growth in the U.S. drove oral SFP growth, with shipments reaching nearly 165 million cans.
Philip Morris
Philip Morris
Forward Guidance
Philip Morris International forecasts a reported diluted EPS of $6.55 to $6.68 for the full year 2025.
Positive Outlook
- Estimated total international industry volume decline of around 1% for cigarettes and HTUs, excluding China and the U.S.
- Total cigarette and smoke-free product shipment volume growth for PMI of up to 2% driven by smoke-free products volume growth of 12% to 14%.
- Net revenue growth of around 6% to 8% on an organic basis.
- Organic operating income growth of 10.5% to 12.5%.
- Operating cash flow of around $11 billion at prevailing exchange rates, subject to year-end working capital requirements.
Challenges Ahead
- Full-year amortization of acquired intangibles of $0.49 per share, including the amortization of IQOS commercialization rights in the U.S.
- An effective tax rate, excluding discrete tax events, of approximately 22.5% to 23.5%.
- Capital expenditures of approximately $1.5 billion, including further investments in ZYN capacity in the U.S.
- No dividend income from Rothmans, Benson & Hedges Inc. (our deconsolidated Canadian affiliate).
- No share repurchases in 2025.