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PMI(PM) - 2024 Q4 - Annual Results
PMPMI(PM)2025-02-06 12:03

Financial Performance - PMI reported adjusted net revenues of 30.5billionforthefullyear2024,reflectinga5.230.5 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 9,047millionin2023[21].−Totalnetrevenuesfor2024reached9,047 million in 2023[21]. - Total net revenues for 2024 reached 37,878 million, a 7.4% increase from 35,174millionin2023[28].−ThecompanyreportedanetearningsattributabletoPMIof35,174 million in 2023[28]. - The company reported a net earnings attributable to PMI of (579) million for the fourth quarter of 2024, down from 2,196millioninthesamequarterof2023[16].−NetearningsfortheyearendedDecember31,2024,decreasedby9.32,196 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 8,268millionin2023[63].−BasicearningspershareforQ42024was8,268 million in 2023[63]. - Basic earnings per share for Q4 2024 was (0.38), a significant decline from 1.41inQ42023[63].RevenueBreakdown−Totalcombustibletobaccorevenuesincreasedby6.01.41 in Q4 2023[63]. Revenue Breakdown - Total combustible tobacco revenues increased by 6.0% to 5,819 million in 2024, compared to 5,489millionin2023[21].−Smoke−freeproductrevenues,excludingwellnessandhealthcare,roseby8.95,489 million in 2023[21]. - Smoke-free product revenues, excluding wellness and healthcare, rose by 8.9% to 3,800 million in 2024, up from 3,489millionin2023[21].−Wellnessandhealthcarerevenuesgrewby26.13,489 million in 2023[21]. - Wellness and healthcare revenues grew by 26.1% to 87 million in 2024, compared to 69millionin2023[21].−Totalsmoke−freerevenues,excludingwellnessandhealthcare,amountedto69 million in 2023[21]. - Total smoke-free revenues, excluding wellness and healthcare, amounted to 14,327 million, a 14.3% increase from 12,534millionin2023[26].−Smoke−freeproducts,includingwellnessandhealthcare,generated12,534 million in 2023[26]. - Smoke-free products, including wellness and healthcare, generated 14,660 million in revenues, a 14.2% increase from 12,840millionin2023[26].MarketandUserGrowth−ThetotalshipmentvolumeforPMIin2024was1.1millionunits,withheatedtobaccounits(HTUs)accountingfor3012,840 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 2,889millionin2023[37].−Adjustedoperatingincomefor2024was2,889 million in 2023[37]. - Adjusted operating income for 2024 was 3,519 million, reflecting a 15.3% growth compared to 3,052millionin2023[40].−AdjustedOperatingIncomeMarginfortotalPMIwas38.83,052 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 199million,primarilyduetoanimpairmentcharge[7].−Thecompanyrecordedapre−taxchargeof199 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 180millionin2024,upfrom180 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 27millionin2024from27 million in 2024 from 680 million in 2023, a 96.0% improvement[53]. - The South Korea Indirect Tax Charge accounted for 204millionin2024,markinga100.0204 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 9,204millionin2023[71].−TotalassetsasofDecember31,2024,were9,204 million in 2023[71]. - Total assets as of December 31, 2024, were 61,784 million, down from 65,304millionin2023[65].−Totaldebtdecreasedto65,304 million in 2023[65]. - Total debt decreased to 45,695 million in 2024 from 47,909millionin2023,resultinginaTotalDebttoAdjustedEBITDAratioof2.93[67].−Cashandcashequivalentsincreasedto47,909 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].