PMI(PM)2025-02-06 12:16Investment 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].