NYSE$PM
Philip Morris International Inc. · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Philip Morris's Q2 performance exceeded initial expectations with strong IQOS momentum and favorable cigarette category trends, leading to an increased full-year outlook.
Philip Morris International Inc. reported a strong underlying performance in the second quarter of 2022, with both top- and bottom-line growth exceeding initial expectations. The company's success was driven by excellent IQOS momentum, including accelerating growth in pro forma total IQOS users and heated tobacco unit in-market sales volume, as well as favorable cigarette category trends. As a result, PMI raised its outlook for the full year and now expects to deliver pro forma adjusted growth in net revenues and diluted EPS.
- Net revenues from smoke-free products accounted for 29.9% of total net revenues, or 29.1% on a pro forma basis.
- Market share for heated tobacco units in IQOS markets up by 1.2 points to 7.5% on a pro forma basis.
- Pro forma total IQOS users at quarter-end estimated at approximately 19.0 million, up by 3.2 million versus June 30, 2021.
- Announced recommended public offer for Swedish Match AB of SEK 106 in cash per share and suspension of PMI's three-year share repurchase program.
Headline financials
Revenue & EPS history
Philip Morris · Revenue · Quarterly
$7.83B
Revenue by segment
Philip Morris · $7.76B total across 2 segments · Q2 2022
- Combustible Products$5.49B+3.2%70.8%
- Reduced-Risk Products$2.27B-0.4%29.2%
Forward guidance
PMI is raising its outlook for the full year and now expects to deliver pro forma adjusted growth in net revenues of 6% to 8%, on an organic basis, and diluted EPS of 10% to 12%, excluding currency, underpinned by pro forma heated tobacco unit shipment volume of 90 to 92 billion units.
Tailwinds
- The full contribution of the company's operations in Russia and Ukraine for the entire year.
- No asset impairment costs or further other charges related to the company's operations in Russia or Ukraine.
- No contribution from the operations of Swedish Match in 2022 following the assumed transaction close in the fourth quarter and no further costs associated with the Swedish Match offer.
- A continued gradual improvement in PMI's duty-free business outside Asia.
- An improving IQOS device supply situation, with some remaining uncertainty on the timing of full IQOS availability.
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 heated tobacco unit production capacity build-up due to 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 flat to +1%.
- Increased inflation in raw material and energy prices, and additional supply chain costs due to war-related disruptions.
- Wellness and Healthcare segment net revenues of around $300 million (including smoking cessation products), with an operating loss of around $150 million, primarily due to amortization of intangibles related to acquisitions; investments in research and development; and expenses related to employee retention and recruitment programs.
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 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
| Quarter | Report date | Reaction (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% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro