NYSE$PM

Philip Morris International Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported excellent second-quarter and first-half results and raised full year guidance.

Philip Morris International's smoke-free business continued its momentum in Q2 2024, accounting for 38.1% of total net revenues. The company raised its full-year guidance despite currency headwinds, driven by strong underlying performance and proactive measures across all categories.

  • Smoke-free business accounted for 38.1% of total net revenues, up by 2.7pp versus second-quarter last year.
  • Total IQOS users at quarter-end were estimated at 30.8 million, up by 1.9 million versus December 2023.
  • ZYN nicotine pouch shipments in the U.S. reached 135.1 million cans, representing growth of 50.3% versus prior year.
  • Net revenues grew by 1.2% (organically by 4.8%) due to high single-digit pricing and resilient industry volumes.

Headline financials

Total Revenue

$9.47B

Previous: $8.97B+5.6%
EPS

$1.54

Previous: $1.60-3.8%
HTU Shipments

35.5B

No prior period
Cigarette Shipments

157.6B

No prior period
Adj. Operating Margin

38.6%

Previous: 39.4%-2.0%
Capital Expenditures

-$787M

Previous: -$639M-23.2%
Free Cash Flow

$1.62B

Previous: $929M+74.3%
Net Income

$2.41B

Previous: $1.57B+53.4%
Operating Income

$3.44B

Previous: $2.57B+34.2%
Gross Profit

$6.12B

Previous: $5.74B+6.7%
Cash & Equivalents

$4.81B

Previous: $3.49B+37.7%
Total Assets

$65.8B

Previous: $61.9B+6.3%

Revenue & EPS history

Philip Morris · Revenue · Quarterly

$9.47B

Q2 2024+5.6%vs Q2 2023
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

Philip Morris International raised its full-year guidance for 2024, with adjusted diluted EPS expected to be in the range of $6.33 to $6.45. This forecast includes assumptions for industry volume, shipment volume growth, net revenue growth, and operating cash flow.

Tailwinds

  • A broadly stable total international industry volume for cigarettes and HTUs, excluding China and the U.S.
  • Total cigarette, HTU and oral smoke-free product shipment volume growth for PMI of 1% to 2% driven by smoke-free products.
  • Net revenue growth of 7.5% to 9% on an organic basis.
  • Organic operating income growth of 11% to 13%.
  • Operating cash flow of approximately $11 billion at prevailing exchange rates, subject to year-end working capital requirements.

Headwinds

  • A second half acceleration in HTU adjusted IMS to deliver around 13% growth for the full year, and HTU shipment volumes of around 140 billion units. This assumes no volumes in Taiwan and a slightly greater impact from consumer adjustment to the EU characterizing flavor ban than previously assumed.
  • Nicotine pouch shipment volume in the U.S. of 560 to 580 million cans.
  • An effective tax rate, excluding discrete tax events, of approximately 21% to 22%.
  • Capital expenditures of approximately $1.3 to $1.4 billion, including further investments in ZYN capacity in the U.S.
  • No share repurchases in 2024.

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 2024

Historical avgQ2 2024

+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%

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