Philip Morris International Presents at 2024 CAGNY Conference; Reaffirms 2024 Full-Year Forecast for Reported Diluted EPS of $5.90 to $6.02 and Adjusted Diluted EPS of $6.32 to $6.44, Representing Currency-Neutral Growth of 7% to 9%
February 21 2024 - 7:00AM
Business Wire
Regulatory News:
Philip Morris International Inc.’s (PMI)
(NYSE: PM) Chief Executive Officer, Jacek Olczak and Chief
Financial Officer, Emmanuel Babeau, will address investors today at
the 2024 Consumer Analyst Group of New York (CAGNY) Conference.
The event will be webcast live in listen-only mode, beginning at
approximately 10:00 a.m. ET, at www.pmi.com/2024cagny and on the
PMI Investor Relations Mobile Application (www.pmi.com/irapp).
Presentation slides will also be available on the same site and the
App. An archived copy of the webcast will be available until
Friday, March 22, 2024.
The presentation will cover:
- PMI’s progress to date on becoming a substantially smoke-free
business by 2030;
- the science demonstrating why smoke-free products are a much
better alternative;
- PMI’s responsible marketing practices;
- the success of company’s strong multi-category portfolio with
leading premium brands in heat-not-burn and oral nicotine;
- the first anniversary of our successful combination with
Swedish Match, including progress on integration and a planned
strategic review of the U.S. cigar business;
- the financial model underlying the company’s smoke-free
transformation; and the company’s strong financial and
non-financial performance.
2024 Full-Year Forecast
PMI reaffirms its 2024 full-year reported diluted EPS forecast,
announced on February 8th, of $5.90 to $6.02. Excluding a total
2024 adjustment of $0.42 per share and an unfavorable currency
impact, at currently prevailing exchange rates, of $0.11 per share,
this forecast represents a projected currency-neutral increase of
7% to 9% versus adjusted diluted EPS of $6.01 in 2023, as outlined
in the below table.
Full-Year
2024 Forecast
2023
Growth
Reported Diluted EPS
$5.90
-
$6.02
$ 5.02
Adjustments:
Asset impairment and exit costs
—
0.06
Termination of distribution arrangement in
the Middle East
—
0.04
Income tax impact associated with Swedish
Match AB financing
—
(0.11)
Amortization of intangibles
0.42
0.25
Impairment of goodwill and other
intangibles
—
0.44
Charges related to the war in Ukraine
—
0.03
Swedish Match AB acquisition accounting
related item
—
0.01
Termination of agreement with Foundation
for a Smoke-Free World
—
0.07
South Korea indirect tax charge
—
0.11
Fair value adj. for equity security
investments
—
(0.02)
Tax items (1)
—
0.11
Total Adjustments
0.42
0.99
Adjusted Diluted EPS
$6.32
-
$6.44
$ 6.01
Less: Currency
(0.11)
Adjusted Diluted EPS, excluding
currency
$6.43
-
$6.55
$ 6.01
7.0%
-
9.0%
(1) 2023 Tax items relate to the
unilateral suspension of certain Russian double tax treaties by the
Russian government
The assumptions underlying this forecast remain unchanged versus
those communicated by PMI in its earnings release of February 8,
2024.
Factors described in the Forward-Looking and Cautionary
Statements section of this release represent continuing risks to
these projections.
Forward-Looking & Cautionary Statements
The presentation, related discussion and this press release
contain projections of future results and goals and other
forward-looking statements, including statements regarding business
plans and strategies. Achievement of future results is subject to
risks, uncertainties and inaccurate assumptions. In the event that
risks or uncertainties materialize, or underlying assumptions prove
inaccurate, actual results could vary materially from those
contained in such forward-looking statements. Pursuant to the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995, PMI is identifying important factors that, individually or
in the aggregate, could cause actual results and outcomes to differ
materially from those contained in any forward-looking statements
made by PMI.
PMI's business risks include: excise tax increases and
discriminatory tax structures; increasing marketing and regulatory
restrictions that could reduce our competitiveness, eliminate our
ability to communicate with adult consumers, or ban certain of our
products in certain markets or countries; health concerns relating
to the use of tobacco and other nicotine-containing products and
exposure to environmental tobacco smoke; litigation related to
tobacco use and intellectual property; intense competition; the
effects of global and individual country economic, regulatory and
political developments, natural disasters and conflicts; the impact
and consequences of Russia's invasion of Ukraine; changes in adult
smoker behavior; the impact of COVID-19 on PMI's business; lost
revenues as a result of counterfeiting, contraband and cross-border
purchases; governmental investigations; unfavorable currency
exchange rates and currency devaluations, and limitations on the
ability to repatriate funds; adverse changes in applicable
corporate tax laws; adverse changes in the cost, availability, and
quality of tobacco and other agricultural products and raw
materials, as well as components and materials for our electronic
devices; and the integrity of its information systems and
effectiveness of its data privacy policies. PMI's future
profitability may also be adversely affected should it be
unsuccessful in its attempts to produce and commercialize
reduced-risk products or if regulation or taxation do not
differentiate between such products and cigarettes; if it is unable
to successfully introduce new products, promote brand equity, enter
new markets or improve its margins through increased prices and
productivity gains; if it is unable to expand its brand portfolio
internally or through acquisitions and the development of strategic
business relationships; if it is unable to attract and retain the
best global talent, including women or diverse candidates; or if it
is unable to successfully integrate and realize the expected
benefits from recent transactions and acquisitions. Future results
are also subject to the lower predictability of our reduced-risk
product category's performance.
PMI is further subject to other risks detailed from time to time
in its publicly filed documents, including PMI's Annual Report on
Form 10-K for the fourth quarter and year ended December 31, 2023.
PMI cautions that the foregoing list of important factors is not a
complete discussion of all potential risks and uncertainties. PMI
does not undertake to update any forward-looking statement that it
may make from time to time, except in the normal course of its
public disclosure obligations.
Philip Morris International: Delivering a Smoke-Free
Future
Philip Morris International (PMI) is a leading international
tobacco company, actively delivering a smoke-free future and
evolving its portfolio for the long term to include products
outside of the tobacco and nicotine sector. The company’s current
product portfolio primarily consists of cigarettes and smoke-free
products. Since 2008, PMI has invested $12.5 billion to develop,
scientifically substantiate and commercialize innovative smoke-free
products for adults who would otherwise continue to smoke, with the
goal of completely ending the sale of cigarettes. This includes the
building of world-class scientific assessment capabilities, notably
in the areas of pre-clinical systems toxicology, clinical and
behavioral research, as well as post-market studies. In 2022, PMI
acquired Swedish Match – a leader in oral nicotine delivery –
creating a global smoke-free champion led by the companies’ IQOS
and ZYN brands. The U.S. Food and Drug Administration has
authorized versions of PMI’s IQOS Platform 1 devices and
consumables and Swedish Match’s General snus as Modified Risk
Tobacco Products. As of December 31, 2023, PMI's smoke-free
products were available for sale in 84 markets, and PMI estimates
that approximately 20.8 million adults around the world had already
switched to IQOS and stopped smoking. Smoke-free products accounted
for approximately 37% of PMI’s total full-year 2023 net revenues.
With a strong foundation and significant expertise in life
sciences, PMI announced in February 2021 its ambition to expand
into wellness and healthcare areas and, through its Vectura Fertin
Pharma business, aims to enhance life through the delivery of
seamless health experiences. For more information, please visit
www.pmi.com and www.pmiscience.com.
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Investor Relations: Stamford, CT: +1 (203) 904 2413 Lausanne:
+41 (0)58 242 4666 Email: InvestorRelations@pmi.com
Media: David Fraser Lausanne: +41 (0)58 242 4500 Email:
David.Fraser@pmi.com
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