Business News | Philip Morris Q3 Net Revenues Rise 5.5 Pc to USD 11.4 Billion on Smoke-free, Combustible Growth
Get latest articles and stories on Business at LatestLY. Tobacco major Philip Morris International (PMI) reported a 5.5 per cent YoY rise in net revenues to USD 11.4 billion in Q3, driven by growth in both smoke-free and combustible products, as per a company statement.
New Delhi [India], October 22 (ANI): Tobacco major Philip Morris International (PMI) reported a 5.5 per cent YoY rise in net revenues to USD 11.4 billion in Q3, driven by growth in both smoke-free and combustible products, as per a company statement.
As per the release, PMI’s total shipments rose 0.6 per cent during the quarter, supported by a 2.7 per cent increase in smoke-free product (SFP) shipments across all categories.
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This was backed by high single-digit growth in adjusted in-market sales of smoke-free products. The combustible products segment also remained resilient, particularly in markets where smoke-free products are banned or have limited availability.
"We delivered another excellent quarter, with growing total volumes, double-digit organic operating income growth and robust margin expansion," said Jacek Olczak, Group CEO PMI.
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Revenues from smoke-free products increased 4.1 per cent, while the combustible products segment recorded 6.4 per cent growth. Smoke-free products, which are now available in 110 markets, contributed over approximately 42 per cent in the year-to-date period.
On the other hand, the company’s gross profit increased 6.7 per cent, supported by higher combustible product pricing and benefits from scale and product mix. Operating income rose 14.1 per cent during the quarter.
Meanwhile, reported diluted EPS of USD 2.12 declined by 4.9 per cent, mainly due to the non-cash fair value adjustment for equity security investments.
Adjusted diluted EPS grew by 5.4 per cent, or by 5.8 per cent excluding a one cent unfavorable currency impact to reach USD 2.36, marking “another quarterly all-time high,” the company said in the release.
In the international smoke-free segment, net revenues increased 0.7 per cent, with organic growth of 3.4 per cent, driven by a 2.7 per cent rise in volumes.
Adjusted in-market sales growth accelerated to 8 per cent, despite a challenging comparison for heated tobacco units (HTUs) due to differences in shipment timing, particularly in Japan. In this segment, gross profit rose 0.8 per cent, reflecting organic growth of 3.3 per cent.
The company also raised its regular quarterly dividend by 8.8 per cent to USD 1.60 per share, equivalent to an annualised dividend of USD 6.40 per share. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)