NYSE$PM

Philip Morris International Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Delivered reported diluted EPS of $1.50 and adjusted diluted EPS of $1.56, representing currency-neutral growth of 14.0%.

Philip Morris International Inc. (PMI) reported a strong first quarter performance in 2022, with organic net revenue and currency-neutral adjusted diluted EPS growth exceeding expectations, driven by the re-acceleration of the IQOS business and the robust performance of the combustible business.

  • Net revenues from smoke-free products accounted for 31.2% of total net revenues, or 30.4% on a pro forma basis.
  • Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.1 points to 7.5% on a pro forma basis.
  • Pro forma total IQOS users at quarter-end estimated at approximately 17.9 million (up by more than one million versus December 31, 2021), of which 12.7 million had switched to IQOS and stopped smoking.
  • Repurchased approximately 2.0 million shares of common stock for $199 million, at an average price of $100.95 per share, representing total repurchases of approximately $1 billion since the start of the current three-year program in July 2021.

Headline financials

Total Revenue

$7.75B

Previous: $7.59B+2.1%
EPS (adj)

$1.56

Previous: $1.57-0.6%
Capital Expenditures

-$229M

Previous: -$179M-27.9%
Free Cash Flow

$2.1B

Previous: $2.24B-6.1%
Net Income

$2.33B

Previous: $2.42B-3.6%
Operating Income

$3.3B

Previous: $3.44B-4.2%
Gross Profit

$5.14B

Previous: $5.31B-3.3%
Cash & Equivalents

$4.62B

Previous: $3.9B+18.5%
Total Assets

$41.7B

Previous: $39.8B+4.8%

Revenue & EPS history

Philip Morris · Revenue · Quarterly

$7.75B

Q1 2022+2.1%vs Q1 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Philip Morris · $7.68B total across 2 segments · Q1 2022

  • Combustible Products
    $5.33B
  • Reduced-Risk Products
    $2.35B

Forward guidance

PMI expects to deliver robust top- and bottom-line growth this year on a pro forma adjusted basis, including full-year adjusted diluted EPS growth of 9% to 11%, excluding currency.

Tailwinds

  • The company's operations in Russia and Ukraine for the first quarter of 2022 only, with no further contribution as of April 1, 2022
  • No asset impairment costs or further charges related to the company's operations in Russia or Ukraine
  • A continued gradual improvement in PMI's duty-free business outside Asia, with no meaningful recovery in Asia
  • An improving IQOS device supply situation, with some remaining uncertainty on the timing of full IQOS availability
  • A pro forma adjusted operating income margin change of flat to +100 basis points on an organic basis

Headwinds

  • Continuing uncertainty over the pace of the ongoing recovery from pandemic-related effects on the operating environment, notably in select geographies in PMI's South & Southeast Asia Region
  • The impact on TEREA production capacity build-up of the decision to cancel manufacturing plans in Russia
  • A pro forma estimated total international industry volume change, excluding China and the U.S., of approximately -1% to flat
  • Increased inflation in raw material and energy prices, and additional supply chain costs due to war-related disruptions
  • An effective tax rate, excluding discrete tax events, of 21% to 22%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.8%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.2%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+10.9%

Q4 2024

Best reaction

-16.9%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.5%+5.0%+23.5%
Q4 2025+0.4%+2.3%-6.6%
Q3 2025-4.0%-0.3%-1.5%
Q2 2025-0.4%+1.7%+0.1%
Q1 2025+2.3%+3.1%+8.6%
Q4 2024+10.9%+13.0%+15.2%
Q3 2024+10.5%+9.2%+10.3%
Q2 2024+3.9%+5.7%+12.0%
Q1 2024+5.3%+1.0%+5.9%
Q4 2023-2.5%-2.5%+1.4%
Q3 2023-0.7%-2.6%-1.4%
Q2 2023-1.3%-1.6%-4.5%
Q1 2023-3.7%-2.8%-8.2%
Q4 2022+1.1%+0.4%-2.9%
Q3 2022+0.0%+2.3%+11.3%
Q2 2022+6.8%+7.5%+11.5%
Q1 2022-0.3%-0.3%-1.8%
Q4 2021+3.7%+5.4%-14.6%
Q3 2021-0.4%-0.6%-6.1%
Q2 2021-1.4%+0.5%+3.6%
Q1 2021+2.7%+3.2%+6.3%
Q4 2020+5.0%+6.7%+7.4%
Q3 2020-5.2%-4.4%-0.4%
Q2 2020+4.3%+5.4%+7.3%
Q1 2020-4.9%-4.2%-8.3%
Q4 2019+4.2%+6.6%+4.0%
Q3 2019+1.8%+2.6%+7.2%
Q2 2019+9.5%+7.0%+4.8%
Q1 2019-1.4%-0.7%+1.6%
Q4 2018+5.9%+6.7%+15.8%
Q3 2018+5.0%+4.7%+2.1%
Q2 2018+2.6%+1.7%+3.5%
Q1 2018-16.9%-18.7%-20.4%
Q4 2017+1.1%+4.2%+9.5%
Q3 2017-2.7%-3.5%-8.8%
Q2 2017-1.7%-3.1%-5.2%
Q1 2017-3.8%-0.7%+0.7%
Q4 2016+5.4%+5.9%+14.9%
Q3 2016+0.5%+0.8%-6.5%
Q2 2016-3.3%-3.1%-2.6%
Q1 2016-2.5%
Q4 2015-0.3%
Q3 2015+3.9%
Q2 2015+3.8%
Q1 2015+9.1%
Q4 2014-1.0%
Q3 2014+2.9%
Q2 2014+1.6%
Q1 2014-1.5%
Q4 2013+4.4%
Q3 2013+1.0%
Q2 2013-1.2%
Q1 2013-2.2%
Q4 2012+3.1%
Q3 2012-4.1%
Q2 2012-0.6%
Q1 2012+0.1%
Q4 2011+1.1%
Q3 2011+0.5%
Q2 2011-1.7%
Q1 2011-1.2%
Q4 2010+0.8%
Q4 2007+0.8%
Q3 2010-1.0%
Q2 2010+0.7%
Q1 2009+0.7%
Q1 2010-0.0%
Q4 2009-1.4%
Q3 2008+2.5%
Q3 2009+2.5%
Q2 2009-2.1%
Q2 2008-2.1%
Q4 2008-2.1%

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