Philip Morris International Announces New Regional Structure and Senior Management Changes to Accelerate Growth Toward a Smoke-Free Future
25 November 2022 - 7:05PM
Business Wire
Philip Morris International Inc. (PMI) (NYSE: PM) today
announced a new regional structure and related senior management
changes to enable continued growth as a multicategory leader
internationally and advance its rapid transition toward a
smoke-free future.
“We are changing the company’s regional structure to further
support the growth of our smoke-free business, reinforce consumer
centricity, and increase the speed of innovation and deployment—all
in alignment with our ambition of becoming a majority smoke-free
business by net revenues by 2025,” said Jacek Olczak, PMI’s Chief
Executive Officer. “The new structure will also create new
opportunities to further grow our senior talent, deepening the
bench of leaders who will spearhead PMI’s progress toward a
smoke-free future for the years to come. I am confident of the
exceptional caliber and determination of our people and wish them
the best in their new roles.”
By the end of January 2023, PMI will rearrange its operations in
four regions, down from the current six, under the leadership of
the following members of senior management:
- Paul Riley, currently President, East Asia & Australia
Region, will be appointed President, East Asia, Australia, and PMI
Duty Free Region;
- Frederic de Wilde, currently President, European Union Region,
will be appointed President, South and Southeast Asia (SSEA),
Commonwealth of Independent States (CIS), Middle East and Africa
(MEA) Region;
- Massimo Andolina, currently Senior Vice President, Operations,
will be appointed President, Europe Region; and
- Deepak Mishra, who will continue as President, Americas
Region.
Drago Azinovic, currently President, Middle East and Africa and
PMI Duty Free Region, will leave the organization after a
transition period.
In addition, the following appointments will also take
effect:
- Marco Mariotti, currently President, Eastern Europe Region,
will be appointed President, CIS, Central Asia & Israel,
reporting into Frederic de Wilde;
- Stacey Kennedy, currently President, South and Southeast Asia
Region, will be appointed Chief Executive Officer of PMI’s U.S.
business, reporting to Deepak Mishra; and
- Scott Coutts, currently Vice President, Global Manufacturing,
will be appointed Senior Vice President, Operations, succeeding
Massimo Andolina and reporting into Jacek Olczak.
The new regional structure better aligns with the business
strategy in the approximately 180 markets where PMI’s products are
sold. It is designed to accelerate smoke-free product growth in
markets where IQOS already holds double-digit market shares, while
also driving the transition from cigarettes to smoke-free products
in untapped markets—including as of April 2024, the U.S., the
world’s largest smoke-free market as described in our recent press
release.
Furthermore, the new regional structure will further support
PMI’s efforts to broaden access to smoke-free products worldwide
for those adults who would otherwise continue to smoke, including
in low and middle income markets, which the company aspires to
account for at least half of the markets where its smoke-free
products will be available by 2025. Each region will comprise
individual markets, as well as clusters of markets, and will
provide opportunities to accelerate career development within PMI’s
diverse talent pipeline.
The company’s quarterly results’ reporting and related filings
will reflect the new regional structure as of Q1 2023.
Philip Morris International: Delivering a
Smoke-Free Future
Philip Morris International (PMI) is a leading international
tobacco company working to deliver 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,
including heat-not-burn, vapor and oral nicotine products, which
are sold in markets outside the U.S. Since 2008, PMI has invested
more than USD 9 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. The U.S. Food and Drug
Administration (FDA) has authorized the marketing of versions of
PMI’s IQOS Platform 1 devices and consumables as a Modified Risk
Tobacco Products (MRTPs), finding that an exposure modification
orders for these products are appropriate to promote the public
health. As of September 30, 2022, excluding Russia and Ukraine,
PMI's smoke-free products are available for sale in 70 markets, and
PMI estimates that approximately 13.5 million adults around the
world had already switched to IQOS and stopped smoking. With a
strong foundation and significant expertise in life sciences, in
February 2021, PMI announced its ambition to expand into wellness
and healthcare areas and deliver innovative products and solutions
that aim to address unmet consumer and patient needs. For more
information, please visit www.pmi.com and www.pmiscience.com
Forward-Looking and Cautionary
Statements
This press release contains 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; or if it is unable to attract and retain
the best global talent, including women or diverse candidates.
Future results are also subject to the lower predictability of our
reduced-risk product category's performance.
In addition, important factors that could cause actual results
to differ materially from those indicated by forward-looking
statements include risks and uncertainties related to: the
agreement with Altria and the benefits of the transaction; the
possibility that expected benefits related to recent or pending
acquisitions, including the transaction with Swedish Match, may not
materialize as expected; the proposed transaction with Swedish
Match not being timely completed; Swedish Match’s business
experiencing disruptions due to transaction-related uncertainty or
other factors making it more difficult to maintain relationships
with employees, customers, licensees, other business partners or
governmental entities; difficulty retaining key Swedish Match
employees; the outcome of any legal proceedings related to the
proposed transaction with Swedish Match; and the parties being
unable to successfully implement integration strategies or to
achieve expected synergies and operating efficiencies within the
expected time-frames or at all.
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, 2021
and the Form 10-Q for the quarter ended September 30, 2022. 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.
# # #
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Philip Morris International David Fraser T. +41 (0)58 242 4500
E. David.Fraser@pmi.com
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