Core Insights - Philip Morris reported revenue of $9.71 billion for the quarter ended December 2024, reflecting a 7.3% increase year-over-year and a surprise of +3.67% over the Zacks Consensus Estimate of $9.36 billion [1] - The earnings per share (EPS) was $1.55, up from $1.36 in the same quarter last year, with an EPS surprise of +2.65% compared to the consensus estimate of $1.51 [1] Financial Performance Metrics - Shipment Volume for PMI Cigarettes and Heated Tobacco Units (HTUs) was 35.72 billion, slightly below the average estimate of 36.16 billion [4] - In Europe, the shipment volume for cigarettes was 38.39 billion, exceeding the estimate of 38.21 billion [4] - Total net revenues by geography showed significant growth, with Europe at $4.06 billion (+12.2% year-over-year), Americas at $1.26 billion (+131.4% year-over-year), and SSEA, CIS & MEA at $2.87 billion (+6% year-over-year) [4] - Net revenues from smoke-free products excluding Wellness and Healthcare reached $410 million, a +9.6% increase year-over-year, while revenues from Wellness and Healthcare were $87 million, up +26.1% year-over-year [4] - Total combustible tobacco revenues were $5.82 billion, reflecting a +6% year-over-year change, while total smoke-free revenues excluding Wellness and Healthcare were $3.80 billion, showing an +8.9% year-over-year change [4] Stock Performance - Philip Morris shares have returned +7.5% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Philip Morris International (PM) shares reached an all-time high following better-than-expected results and guidance driven by strong demand for non-smoking alternatives [1][5] - The company reported fourth-quarter adjusted earnings per share (EPS) of $1.55, with revenue increasing 7% year-over-year to $9.7 billion, surpassing Visible Alpha forecasts [1][5] Sales Performance - Sales of smoke-free products rose 9% to $3.9 billion, while sales of combustibles increased 6% to $5.8 billion [2] - Shipment volume grew 2% to 193.1 billion, with oral smoke-free products up 22% to 4.6 billion, heated tobacco products rising 5% to 35.7 billion, and cigarette sales increasing 1% to 152.8 billion [2] Management Commentary - CEO Jacek Olczak stated that the company has "strong momentum across all categories" and expressed confidence in its smoke-free transformation and brand portfolio to deliver value for shareholders [3] - The company anticipates full-year adjusted EPS between $7.04 and $7.17, exceeding the Visible Alpha estimate of $7.01 [3] Stock Performance - Shares of Philip Morris International increased by 7% to $140.16, previously reaching a record high of $146.77, and have gained over 50% in value over the past year [4]

2024 Fourth-Quarter and Full-Year Results February 6, 2025 Introduction • A glossary of terms as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures for non-GAAP financial measures cited in this presentation are available in Exhibit 99.2 to the company's Form 8-K dated February 6, 2025 and on our Investor Relations website with additional non- GAAP reconciliations available at the end of this presentation 2 Forward-Looking and Cautionary Statements ...

Philip Morris International Inc. PM shares are trading higher on Thursday after fourth-quarter FY24 earnings result.The company reported revenue growth of 7.3% year-on-year to $9.71 billion, beating the analyst consensus estimate of $9.44 billion.The smoke-free business accounted for 40% of the company’s total net revenues, up by 0.7pp versus the fourth quarter last year.Cigarette and Heated Tobacco unit (HTU) shipment volume in fourth-quarter grew by 1.9% Y/Y, reflecting growth of 5.1% and 1.1% for HTUs an ...

Core Insights - Philip Morris reported quarterly earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $1.51 per share, and up from $1.36 per share a year ago, representing an earnings surprise of 2.65% [1] - The company achieved revenues of $9.71 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.67% and increasing from $9.05 billion year-over-year [2] - Philip Morris shares have increased approximately 8.8% year-to-date, outperforming the S&P 500's gain of 3.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.60 on revenues of $8.9 billion, and for the current fiscal year, it is $7.04 on revenues of $39.34 billion [7] - The estimate revisions trend for Philip Morris is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Tobacco industry is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Turning Point Brands, another company in the Tobacco industry, is expected to report quarterly earnings of $0.65 per share, reflecting a year-over-year decline of 17.7% [9]

Investment in Smoke-Free Products - Philip Morris International (PMI) has invested over $14 billion since 2008 to develop smoke-free products, aiming to end cigarette sales entirely[13]. - The acquisition of Swedish Match in November 2022 has positioned PMI as a leader in oral nicotine delivery, enhancing its smoke-free product portfolio with the ZYN brand[14]. - PMI's smoke-free products are available in 95 markets, with nicotine pouches expanding to 37 markets[21]. Market Performance - Total shipment volume, including cigarettes and heated tobacco units, increased by 2.5% in 2024 to 756.6 billion units, with heated tobacco units reaching 139.7 billion units, up from 125.3 billion units in 2023[26]. - Marlboro accounted for approximately 40% of PMI's total cigarette shipment volume in 2024, with a 3.7% increase in shipment volume[22][26]. - PMI's total international market share rose to 28.7% in 2024, up from 28.3% in 2023, with cigarette market share at 23.5% and heated tobacco unit market share at 5.2%[29]. - The company holds a market share of at least 15% in approximately 100 markets globally, including major markets like France, Germany, and Japan[29]. Strategic Partnerships and Relationships - The company plans to end its commercial relationship with Altria Group for IQOS in the U.S. by April 30, 2024, gaining full rights to commercialize IQOS[15]. - An agreement reached in 2022 with PM USA relates to IQOS commercialization rights in the U.S., including intellectual property rights[56]. Workforce and Employment - As of December 31, 2024, the company employed approximately 83,100 people worldwide, including full-time, temporary, and part-time staff[41]. - The company operates in approximately 170 markets with employees representing more than 130 nationalities, reflecting the demographics of the countries served[44]. - The company has maintained its global EQUAL-SALARY certification, which is a valuable component of its reputation as an employer[46]. Regulatory and Environmental Compliance - The company is subject to multiple laws and regulations in its heavily regulated industry, impacting its operational costs and market demand[47][50]. - The company has implemented environmental management programs in accordance with ISO 14001 and ISO 45001 standards, focusing on reducing its carbon footprint and compliance with environmental laws[49]. - The company closely monitors the evolving regulatory landscape related to sustainability and implements initiatives aligned with its sustainability strategy[48]. Consumer Health Strategy - PMI's Wellness and Healthcare strategy focuses on developing oral and inhaled consumer health products, although revenue from cannabinoids is expected to be negligible in the near term[16]. Seasonal Trends - The company experienced higher SFP adult user growth in the first half of each year compared to the second half due to seasonal influences[60]. Intellectual Property - The company has a large number of granted patents and pending patent applications worldwide, which are material to its business[54].

Financial Performance - PMI reported adjusted net revenues of $30.5 billion for the full year 2024, reflecting a 5.2% increase compared to the previous year[6]. - Net revenues for PMI in 2024 reached $9,706 million, reflecting a 7.3% increase from $9,047 million in 2023[21]. - Total net revenues for 2024 reached $37,878 million, a 7.4% increase from $35,174 million in 2023[28]. - The company reported a net earnings attributable to PMI of $(579) million for the fourth quarter of 2024, down from $2,196 million in the same quarter of 2023[16]. - Net earnings for the year ended December 31, 2024, decreased by 9.3% to $7,503 million from $8,268 million in 2023[63]. - Basic earnings per share for Q4 2024 was $(0.38), a significant decline from $1.41 in Q4 2023[63]. Revenue Breakdown - Total combustible tobacco revenues increased by 6.0% to $5,819 million in 2024, compared to $5,489 million in 2023[21]. - Smoke-free product revenues, excluding wellness and healthcare, rose by 8.9% to $3,800 million in 2024, up from $3,489 million in 2023[21]. - Wellness and healthcare revenues grew by 26.1% to $87 million in 2024, compared to $69 million in 2023[21]. - Total smoke-free revenues, excluding wellness and healthcare, amounted to $14,327 million, a 14.3% increase from $12,534 million in 2023[26]. - Smoke-free products, including wellness and healthcare, generated $14,660 million in revenues, a 14.2% increase from $12,840 million in 2023[26]. Market and User Growth - The total shipment volume for PMI in 2024 was 1.1 million units, with heated tobacco units (HTUs) accounting for 30% of total shipments, up from 25% in 2023[6]. - The number of total IQOS users reached 20 million globally, representing a 15% increase year-over-year[9]. - PMI's market share for heated tobacco units in Japan reached 35%, up from 32% in the previous year[9]. - PMI anticipates a continued expansion in the SSEA, CIS & MEA regions, targeting a 10% growth in market share by 2025[6]. Operating Income and Margins - PMI's adjusted operating income margin for 2024 was 40%, an increase from 38% in 2023[6]. - Total PMI operating income for 2024 reached $3,259 million, a 12.8% increase from $2,889 million in 2023[37]. - Adjusted operating income for 2024 was $3,519 million, reflecting a 15.3% growth compared to $3,052 million in 2023[40]. - Adjusted Operating Income Margin for total PMI was 38.8% in 2024, compared to 37.8% in 2023, indicating a 1.0 percentage point increase[59]. Research and Development - The company invested $1.2 billion in research and development for new smoke-free products in 2024, a 10% increase from 2023[6]. Charges and Impairments - PMI completed the sale of Vectura Group Ltd. for a pre-tax loss of $199 million, primarily due to an impairment charge[7]. - The company recorded a pre-tax charge of $140 million in Q3 2023 related to the termination of the agreement with the Foundation for a Smoke-Free World[7]. - The company incurred restructuring charges of $180 million in 2024, up from $109 million in 2023, representing a 65.1% unfavorable change[53]. - The impairment of goodwill and other intangibles decreased significantly to $27 million in 2024 from $680 million in 2023, a 96.0% improvement[53]. - The South Korea Indirect Tax Charge accounted for $204 million in 2024, marking a 100.0% unfavorable change from the previous year[56]. Cash Flow and Assets - Net cash provided by operating activities for the year ended December 31, 2024, increased by 32.7% to $12,217 million from $9,204 million in 2023[71]. - Total assets as of December 31, 2024, were $61,784 million, down from $65,304 million in 2023[65]. - Total debt decreased to $45,695 million in 2024 from $47,909 million in 2023, resulting in a Total Debt to Adjusted EBITDA ratio of 2.93[67]. - Cash and cash equivalents increased to $4,216 million in 2024 from $3,060 million in 2023[65].

Group 1 - Philip Morris International (NYSE: PM) is recognized as a strong dividend business despite facing industry challenges in recent years due to a gradual decline in smoking rates [1] - The author emphasizes the importance of dividend investing as a pathway to financial freedom, highlighting its accessibility for individuals seeking to build long-term wealth [1] - The author's professional background includes extensive experience in mergers and acquisitions (M&A), business valuation, and financial modeling across various sectors, which informs their investment strategy [1] Group 2 - The article aims to share insights and experiences related to dividend investing, with the goal of demystifying the process for others [1] - The focus on sectors such as technology, real estate, software, finance, and consumer staples indicates a diversified investment approach [1]

Core Insights - The earnings season is ongoing, influenced by tariff concerns and a strong US Dollar Index (DXY) which has increased approximately 8% since late September 2024 [1] Group 1: Economic Impact - The strong US Dollar has led to one of the more challenging year-over-year currency comparisons for companies [1]

Core Insights - Philip Morris International Inc. (PM) is expected to report growth in both revenue and earnings for the fourth quarter of 2024, with revenue estimates at $9.36 billion, reflecting a 3.5% increase year-over-year [1] - The earnings consensus has slightly decreased to $1.51 per share, indicating an 11% increase from the previous year's quarter [2] Revenue Growth Drivers - The company's ability to implement strong pricing strategies has significantly contributed to revenue and operating income growth, as smokers tend to accept price increases due to the addictive nature of cigarettes [3] - Smoke-free products have become a substantial revenue source, accounting for 38% of net revenues in Q3 2024, driven by the success of the IQOS device [4] - Smoke-free product revenues are projected to grow organically by double digits, nearing $15 billion in 2024 [4] Financial Performance Expectations - The Zacks Consensus Estimate for smoke-free product revenues in Q4 is $3,867 million, up from $3,489 million in the same quarter last year [5] - Cost-saving measures and strategic initiatives are positively impacting the company's margins [5] Currency and Regulatory Challenges - Currency fluctuations have posed challenges, particularly with the Egyptian Pound and Argentine Peso, leading to an anticipated unfavorable currency impact of 40 cents for the full year [6] - Strict government regulations, including mandatory precautionary labels and self-critical advertisements, are also affecting cigarette consumption [6] Earnings Prediction Insights - Current models do not predict a definitive earnings beat for Philip Morris, as it holds a Zacks Rank of 3 and an Earnings ESP of -0.61% [7]