NYSE$PM

Philip Morris International Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported excellent performance driven by strong underlying momentum and reacceleration of business in the fourth quarter.

Philip Morris International Inc. reported a strong performance in Q4 2021, marked by a reacceleration of business momentum. The company saw growth in total volume, high single-digit organic net revenue growth, and double-digit adjusted diluted EPS growth. There was also a step-up in sequential IQOS user growth and outstanding initial performance of IQOS ILUMA.

  • Reported diluted EPS increased by 5.5%, and adjusted diluted EPS grew by 7.1%.
  • Cigarette and heated tobacco unit shipment volume increased by 4.2%, with heated tobacco unit volume up by 17.0% to 25.4 billion units.
  • Net revenues increased by 8.9%, with net revenues from smoke-free products accounting for 30.7% of total net revenues.
  • Operating income increased by 1.4%, and adjusted operating income grew by 8.3% on an organic basis.

Headline financials

Total Revenue

$8.1B

Previous: $7.44B+8.9%
EPS (adj)

$1.35

Previous: $1.26+7.1%
Capital Expenditures

$289M

Previous: $140M+106.4%
Free Cash Flow

$3.74B

Previous: $3.02B+23.9%
Net Income

$2.09B

Previous: $1.98B+5.9%
Operating Income

$2.95B

Previous: $2.91B+1.4%
Gross Profit

$5.3B

Previous: $4.87B+8.7%
Cash & Equivalents

$4.5B

Previous: $7.28B-38.2%
Total Assets

$41.3B

Previous: $44.8B-7.9%

Revenue & EPS history

Philip Morris · Revenue · Quarterly

$8.1B

Q4 2021+8.9%vs Q4 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Philip Morris · $8B total across 2 segments · Q4 2021

  • Combustible Products
    $5.61B+1.9%
  • Reduced-Risk Products
    $2.39B+23.4%

Forward guidance

Philip Morris International forecasts organic top-line growth of 4% to 6% and currency-neutral adjusted diluted EPS growth of 8% to 11% for the full year 2022.

Tailwinds

  • Continuing uncertainty over the pace of the ongoing recovery from pandemic-related effects on the operating environment
  • An improving IQOS device supply situation, with a gradual return to an unconstrained IQOS user quarterly growth progression, albeit with a lack of full visibility over the year
  • A continued gradual improvement in PMI's duty-free business outside Asia, with no meaningful recovery in Asia
  • Adjusted net revenue growth of approximately 4% to 6% on an organic basis
  • An increase in adjusted operating income margin of 50 to 150 basis points on an organic basis, mainly driven by the continued favorable product mix shift from cigarettes to smoke-free products, coupled with the benefit of further operating leverage and accelerated operating efficiencies

Headwinds

  • The expectation of a moderately lower gross margin primarily due to temporary factors, such as the higher initial cost of IQOS ILUMA devices and initial weight and cost of TEREA consumables
  • Higher logistics costs, including costs related to the use of air freight to support the strong up-take of IQOS ILUMA and TEREA consumables in Japan
  • Investments to grow capacity across PMI's smoke-free platforms
  • Some inflation for certain supply chain elements
  • Continued commercial reinvestment to support our growing portfolio of smoke-free alternatives

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 Q4 2021

Historical avgQ4 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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