NYSE$PM

Philip Morris International Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Philip Morris International reported strong financial performance driven by IQOS growth and strategic acquisitions.

Philip Morris International's Q2 2021 earnings showed strong growth, with adjusted diluted EPS up by 17.8% on an organic basis. The company is increasing its full-year adjusted outlook, reflecting improved total industry volume and strategic acquisitions aimed at long-term growth.

  • Adjusted diluted EPS of $1.57, up by 17.8% on an organic basis.
  • Cigarette and heated tobacco unit shipment volume increased by 6.1%.
  • Market share for heated tobacco units in IQOS markets, excluding the U.S., rose by 1.4 points to 7.3%.
  • Total IQOS users reached approximately 20.1 million, with about 14.7 million having switched to IQOS and stopped smoking.

Headline financials

Total Revenue

$7.59B

Previous: $6.65B+14.2%
EPS (adj)

$1.57

Previous: $1.29+21.7%
Adj. Operating Margin

44.1%

No prior period
Capital Expenditures

-$307M

Previous: -$310M+1.0%
Free Cash Flow

$1.87B

Previous: $1.64B+13.9%
Net Income

$2.17B

Previous: $1.95B+11.6%
Operating Income

$3.13B

Previous: $2.73B+14.6%
Gross Profit

$5.24B

Previous: $4.47B+17.2%
Cash & Equivalents

$4.92B

Previous: $4.2B+17.0%
Total Assets

$40.7B

Previous: $39.2B+3.9%

Revenue & EPS history

Philip Morris · Revenue · Quarterly

$7.59B

Q2 2021+14.2%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Philip Morris · $7.59B total across 2 segments · Q2 2021

  • Combustible Products
    $5.32B
  • Reduced-Risk Products
    $2.28B

Forward guidance

PMI is increasing its full-year adjusted outlook, with organic net revenue growth of 6% to 7% and adjusted diluted EPS growth of 12% to 14% on the same basis, mainly reflecting improved total industry volume.

Tailwinds

  • A gradual improvement in the general operating environment.
  • Total cigarette and heated tobacco unit shipment volume progression for PMI of approximately flat to +2%.
  • Adjusted net revenue growth of approximately 6% to 7% on an organic basis.
  • An increase in adjusted operating income margin of around 200 basis points on an organic basis.
  • Continued robust organic net revenue growth.

Headwinds

  • Lack of near-term recovery in PMI's duty-free business.
  • A limited impact from the current global shortage of semiconductors on the supply of our electronic devices to consumers.
  • Potential volatility around the duration and effects of pandemic-related mobility restrictions across PMI's key markets.
  • Incremental commercial investments, compared to the first half of 2021, of approximately $300 to $400 million.
  • Risk of prolonged pandemic-related restrictions.

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 Q2 2021

Historical avgQ2 2021

+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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