NYSE$PM

Philip Morris International Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported diluted EPS of $1.28 and adjusted diluted EPS of $1.38, exceeding expectations.

Philip Morris International's Q1 2023 results show a strong performance with adjusted diluted EPS of $1.38, exceeding expectations. Net revenues increased by 3.5% on a reported basis and 3.2% organically. The integration of Swedish Match contributed positively, and the company is reaffirming its full-year 2023 forecast for organic net revenue growth and currency-neutral adjusted diluted EPS growth.

  • Reported net revenues up by 9.6%, excluding currency.
  • Combustible tobacco net revenue decline of 1.5%; growth of 3.0% on an organic basis, driven by pricing of 7.4%.
  • Market share for HTUs in IQOS markets up by 0.9 points to 9.0%.
  • ZYN nicotine pouch (NP) shipment volume in the U.S. of 73.2 million cans, representing growth of 46.7% versus first-quarter 2022 Swedish Match shipments of 49.9 million cans

Headline financials

Total Revenue

$8.02B

Previous: $7.75B+3.5%
EPS (adj)

$1.38

Previous: $1.56-11.5%
Capital Expenditures

-$279M

Previous: -$229M-21.8%
Free Cash Flow

$1.72B

Previous: $2.1B-18.4%
Net Income

$2B

Previous: $2.33B-14.4%
Operating Income

$2.73B

Previous: $3.3B-17.2%
Gross Profit

$4.98B

Previous: $5.14B-3.1%
Cash & Equivalents

$2.43B

Previous: $4.62B-47.5%
Total Assets

$62.1B

Previous: $41.7B+48.7%

Revenue & EPS history

Philip Morris · Revenue · Quarterly

$8.02B

Q1 2023+3.5%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Philip Morris · $5.61B total across 1 segment · Q3 2022

  • Combustible Products
    $5.61B-3.2%

Forward guidance

The company is reaffirming its full-year 2023 forecast for organic net revenue growth of 7% to 8.5% and currency-neutral adjusted diluted EPS growth of 7% to 9%.

Tailwinds

  • An estimated total international industry volume decline for cigarettes and HTUs, excluding China and the U.S., of 1% to 2%.
  • A total cigarette and HTU shipment volume change for PMI of approximately flat to +1%.
  • HTU shipment volume of 125 to 130 billion units, broadly in line with anticipated adjusted in-market sales volume and reflecting an acceleration in growth versus 2022.
  • Net revenue growth of approximately 7% to 8.5% on an organic basis.
  • Strong full-year performance for Swedish Match’s existing operations, underpinned by strong shipment volume growth for ZYN in the U.S.

Headwinds

  • A cigarette shipment volume decline of approximately 2.5% to 3.5%.
  • An adjusted operating income margin decline of 50 to 150 basis points on an organic basis, primarily reflecting continued global inflationary pressures.
  • Wellness and Healthcare segment net revenues of around $300 million (including smoking cessation products), with an adjusted operating loss of around $150 million, primarily due to investments in research and development.
  • Incremental net interest costs of around $200 million versus 2022 on PMI borrowings excluding Swedish Match-related financing, notably reflecting higher borrowing costs on refinanced debt.
  • No share repurchases in 2023.

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 2023

Historical avgQ1 2023

+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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