Regulatory News:
2015 Second-Quarter
- Reported diluted earnings per share of
$1.21, up by $0.04 or 3.4% versus $1.17 in 2014
- Excluding unfavorable currency of
$0.33, reported diluted earnings per share up by $0.37 or 31.6%
versus $1.17 in 2014 as detailed in the attached Schedule 13
- Adjusted diluted earnings per share of
$1.21, down by $0.20 or 14.2% versus $1.41 in 2014
- Excluding unfavorable currency of
$0.33, adjusted diluted earnings per share up by $0.13 or 9.2%
versus $1.41 in 2014 as detailed in the attached Schedule 12
- Cigarette shipment volume of 219.8
billion units, down by 1.4% excluding acquisitions
- Reported net revenues, excluding excise
taxes, of $6.9 billion, down by 12.0%
- Excluding unfavorable currency of $1.3
billion and the impact of acquisitions, reported net revenues,
excluding excise taxes, up by 4.5% as detailed in the attached
Schedule 10
- Reported operating companies income of
$3.0 billion, up by 0.6%
- Excluding unfavorable currency of $680
million and the impact of acquisitions, reported operating
companies income up by 23.6%
- Adjusted operating companies income,
reflecting the items detailed in the attached Schedule 11, of $3.0
billion, down by 13.7%
- Excluding unfavorable currency and the
impact of acquisitions, adjusted operating companies income up by
6.1%
- Reported operating income of $2.9
billion, up by 0.6%
2015 Six Months
Year-to-Date
- Reported diluted earnings per share of
$2.37, up by $0.02 or 0.9% versus $2.35 in 2014
- Excluding unfavorable currency of
$0.64, reported diluted earnings per share up by $0.66 or 28.1%
versus $2.35 in 2014 as detailed in the attached Schedule 17
- Adjusted diluted earnings per share of
$2.37, down by $0.23 or 8.8% versus $2.60 in 2014
- Excluding unfavorable currency of
$0.64, adjusted diluted earnings per share up by $0.41 or 15.8%
versus $2.60 in 2014 as detailed in the attached Schedule 16
- Cigarette shipment volume of 418.6
billion units, down by 0.1% excluding acquisitions
- Reported net revenues, excluding excise
taxes, of $13.5 billion, down by 8.4%
- Excluding unfavorable currency of $2.2
billion and the impact of acquisitions, reported net revenues,
excluding excise taxes, up by 6.6% as detailed in the attached
Schedule 14
- Reported operating companies income of
$5.9 billion, down by 0.8%
- Excluding unfavorable currency of $1.3
billion and the impact of acquisitions, reported operating
companies income up by 20.3%
- Adjusted operating companies income,
reflecting the items detailed in the attached Schedule 15, of $5.9
billion, down by 8.6%
- Excluding unfavorable currency and the
impact of acquisitions, adjusted operating companies income up by
10.9%
- Reported operating income of $5.8
billion, down by 1.1%
2015 Full-Year
Forecast
- PMI reaffirms its 2015 full-year
reported diluted earnings per share (“EPS”) forecast to be in a
range of $4.32 to $4.42, at prevailing exchange rates, versus $4.76
in 2014.
- On an adjusted basis, diluted EPS are
projected to increase in the range of 9% to 11% versus adjusted
diluted EPS of $5.02 in 2014, as detailed in the attached Schedule
20, excluding an unfavorable currency impact, at prevailing
exchange rates, of approximately $1.15 per share for the full-year
2015
- PMI anticipates that its
currency-neutral 2015 full-year adjusted diluted EPS growth rate
will be towards the upper end of its projected range of 9% to
11%
- This forecast includes incremental
spending versus 2014 for the deployment of PMI's Reduced-Risk
Product, iQOS. The spending, which is skewed towards the second
half of the year, will support plans for national expansion in
Japan and Italy, as well as pilot or national launches in
additional markets
- This forecast does not include any
share repurchases in 2015
- This forecast excludes the impact of
any future acquisitions, unanticipated asset impairment and exit
cost charges, future changes in currency exchange rates, any
potential impact of Canadian tobacco litigation described in the
section entitled "Litigation" in this press release and any unusual
events. Factors described in the Forward-Looking and Cautionary
Statements section of this release represent continuing risks to
these projections
Philip Morris International Inc. (NYSE / Euronext Paris: PM)
today announced its 2015 second-quarter results.
"Our second-quarter results were very solid, further reinforcing
our great start to the year," said André Calantzopoulos, Chief
Executive Officer.
"Our organic volume trends, market share growth and robust
pricing, exemplified by our flagship brand Marlboro, are driving
excellent operational performance within an improving macroeconomic
environment for our business."
"Based on this strong business momentum, we now anticipate we
will be towards the upper end of our projected full-year, constant
currency adjusted diluted EPS growth rate range of 9% to 11%."
"While currency headwinds remain stubbornly high, we are ever
focused on the prudent management of cash flow. We are committed to
returning around 100% of our free cash flow to shareholders."
Conference Call
A conference call, hosted by Jacek Olczak, Chief Financial
Officer, with members of the investor community and news media,
will be webcast at 9:00 a.m., Eastern Time, on July 16, 2015.
Access is at www.pmi.com/webcasts.
The audio webcast may also be accessed on iOS or Android devices
by downloading PMI’s free Investor Relations Mobile Application at
www.pmi.com/irapp.
Dividends and Share Repurchase
Program
During the quarter, PMI declared a regular quarterly dividend of
$1.00, representing an annualized rate of $4.00 per common share.
Since its spin-off in March 2008, PMI has increased its regular
quarterly dividend by 117.4% from the initial annualized rate of
$1.84 per common share. PMI did not make any share repurchases in
the first six months of 2015.
Business Development
Dissolution of Joint Venture Agreement
with Swedish Match AB
PMI announces today the dissolution of its exclusive joint
venture agreement with Swedish Match AB (“SWMA”) to commercialize
Swedish snus and other smoke-free tobacco products worldwide,
outside of Scandinavia and the United States. The dissolution,
mutually agreed with SWMA, means that both companies will now focus
on independent strategies for the commercialization of these
products and the trademarks and intellectual property licensed
to the joint venture by the companies will revert to their original
owners.
The two companies have concurrently entered into transitional
agreements under which SWMA will contract manufacture snus products
for PMI for certain markets, including Canada and Russia, and PMI
will distribute Swedish Match’s brand General in Canada and
Russia.
The dissolution of this agreement will not have a material
impact on PMI’s consolidated results of operations, cash flows or
financial position.
Extension of Strategic Framework with
Altria Group, Inc.
PMI announces today the extension of its strategic framework
with Altria Group, Inc. (“Altria”), signed in December 2013, to
include a Joint Research, Development and Technology Sharing
Agreement. The additional Agreement provides the framework under
which PMI and Altria will collaborate to develop the next
generation of e-vapor products for commercialization in the United
States by Altria and in markets outside the United States by PMI.
The collaboration between PMI and Altria in this endeavor is
enabled by exclusive technology cross licenses and technical
information sharing. The Joint Research, Development and Technology
Sharing Agreement also provides for cooperation between PMI and
Altria on scientific assessment, regulatory engagement and approval
related to e-vapor products.
Under the existing strategic framework Agreements, Altria is
making available its e-vapor products exclusively to PMI for
commercialization outside the United States and PMI will make
available two of its candidate reduced-risk tobacco products
exclusively to Altria for commercialization in the United States.
It is envisaged that PMI’s candidate products would be regulated in
the United States as Modified Risk Tobacco Products (“MRTPs”) and
any commercialization would be subject to U.S. Food and Drug
Administration (“FDA”) authorization. As previously announced, PMI
expects to apply to the FDA during the course of 2016 for one of
these two candidate reduced-risk products, its heat-not-burn iQOS
product, to be approved as an MRTP.
Litigation
As of the date of this press release, the Québec Court of Appeal
has yet to issue its decision regarding a motion, heard by the
court on July 9, 2015, to cancel the order of the Superior Court of
the District of Montréal, issued on May 27, 2015, that PMI’s
Canadian affiliate, Rothmans, Benson & Hedges Inc. (“RBH”), pay
an initial deposit of approximately CAD 246 million into a trust
account pending the merits appeal of the Québec class actions
judgment.
The trial court had ordered, as part of its judgment, that RBH
and the other defendants make initial deposits of a portion of the
damages award within 60 days.
Should the Court of Appeal deny the motion for cancellation of
the order, PMI expects to incur a pre-tax charge of approximately
CAD 246 million (approximately $199 million), or an after-tax
charge of $0.09 per share. Depending on developments, this charge
would likely be recorded as tobacco litigation-related expenses in
the second quarter of 2015. Given that the Court of Appeal's
decision has yet to be issued, the Schedules to this press release
do not reflect any such charge. In the event of a denial of the
motion for cancellation by the court, revised Schedules and any
other relevant information will be furnished promptly in a filing
with the U.S. Securities and Exchange Commission, to the extent
relevant.
The cases are Cécilia Létourneau v. JTI-Macdonald Corp.,
Imperial Tobacco Canada Ltd., Rothmans, Benson & Hedges
Inc., and Conseil Québécois sur le Tabac et la Santé and Jean-Yves
Blais v. JTI-Macdonald Corp., Imperial Tobacco Canada Ltd.,
Rothmans, Benson & Hedges Inc. (Superior Court of the
District of Montréal, Province of Québec).
Productivity and Cost Savings
Program
In 2015, PMI's productivity and cost savings initiatives will
include, but are not limited to, the continued enhancement of
production processes, the harmonization of tobacco blends, the
streamlining of product specifications and number of brand
variants, supply chain improvements and overall spending efficiency
across the company. PMI anticipates that these initiatives,
combined with savings associated with the manufacturing footprint
restructuring implemented in 2014, notably in Australia and the
Netherlands, should result in a total company cost base increase,
excluding RRPs and currency, of approximately 1%.
2015 SECOND-QUARTER
CONSOLIDATED RESULTS
In this press release, “PMI” refers to Philip Morris
International Inc. and its subsidiaries. References to total
international cigarette market, defined as worldwide cigarette
volume excluding the United States, total cigarette market, total
market and market shares are PMI tax-paid estimates based on the
latest available data from a number of internal and external
sources and may, in defined instances, exclude the People's
Republic of China and/or PMI's duty free business. North Africa is
defined as Algeria, Egypt, Libya, Morocco and Tunisia. "OTP"
is defined as other tobacco products. "EEMA" is defined as
Eastern Europe, Middle East and Africa and includes PMI's
international duty free business. The term “net revenues”
refers to operating revenues from the sale of our products,
excluding excise taxes and net of sales and promotion incentives.
Operating companies income, or “OCI,” is defined as
operating income, excluding general corporate expenses and the
amortization of intangibles, plus equity (income)/loss in
unconsolidated subsidiaries, net. PMI's management evaluates
business segment performance and allocates resources based on OCI.
“Adjusted EBITDA” is defined as earnings before interest,
taxes, depreciation and amortization, excluding asset impairment
and exit costs, discrete tax items and unusual items. Management
also reviews OCI, OCI margins and earnings per share, or “EPS,” on
an adjusted basis (which may exclude the impact of currency and
other items such as acquisitions, asset impairment and exit costs,
discrete tax items and unusual items), as well as free cash
flow, defined as net cash provided by operating activities less
capital expenditures, and net debt. PMI believes it is appropriate
to disclose these measures as they improve comparability and help
investors analyze business performance and trends. Non-GAAP
measures used in this release should be neither considered in
isolation nor as a substitute for the financial measures prepared
in accordance with U.S. GAAP. Comparisons are to the same
prior-year period unless otherwise stated. For a reconciliation of
non-GAAP measures to corresponding GAAP measures, see the relevant
schedules provided with this press release. Reduced-Risk
Products (“RRPs”) is the term the company uses to refer to
products with the potential to reduce individual risk and
population harm in comparison to smoking combustible cigarettes.
PMI’s RRPs are in various stages of development and
commercialization, and we are conducting extensive and rigorous
scientific studies to determine whether we can support claims for
such products of reduced exposure to harmful and potentially
harmful constituents in smoke, and ultimately claims of reduced
disease risk, when compared to smoking combustible cigarettes.
Before making any such claims, we will rigorously evaluate the full
set of data from the relevant scientific studies to determine
whether they substantiate reduced exposure or risk. Any such claims
may also be subject to government review and approval, as is the
case in the United States today. Trademarks and service marks in
this press release that are the registered property of, or licensed
by, the subsidiaries of PMI, are italicized.
NET
REVENUES
PMI Net
Revenues
Second-Quarter
Six Months
Year-to-Date
(in millions) Excl.
Excl.
2015
2014
Change
Curr.
2015
2014
Change
Curr.
European Union $ 1,988 $ 2,393 (16.9 )% 3.5 % $ 3,880 $
4,406 (11.9 )% 5.4 %
EEMA 1,919 2,283 (15.9 )% 4.4 % 3,762
4,292 (12.3 )% 8.8 %
Asia 2,145 2,311 (7.2 )% 2.7 % 4,300
4,493 (4.3 )% 3.7 %
Latin America & Canada 807 810 (0.4
)% 13.5 % 1,533 1,523 0.7 % 13.8 %
Total PMI $
6,859 $ 7,797 (12.0 )%
4.6 % $ 13,475 $ 14,714
(8.4 )% 6.7 %
In the quarter, net revenues of $6.9 billion were down by 12.0%.
Excluding unfavorable currency of $1.3 billion, net revenues
increased by 4.6%, or by 4.5% excluding currency and the impact of
acquisitions, driven by favorable pricing of $514 million from
across all Regions, led: in the EU, by Germany and Italy; in EEMA,
by Russia and Ukraine; in Asia, by Australia, Indonesia and Korea,
principally driven by a gain from inventories built ahead of the
announced excise tax increase effective January 2015; and in Latin
America & Canada, by Argentina, Brazil, Canada and Mexico. The
favorable pricing was partly offset by unfavorable volume/mix of
$167 million from across all Regions.
OPERATING COMPANIES
INCOME
PMI
OCI
Second-Quarter
Six Months
Year-to-Date
(in millions) Excl.
Excl.
2015
2014
Change
Curr.
2015
2014
Change
Curr.
European Union $ 977 $ 711 37.4 % 76.7 % $ 1,890 $ 1,689
11.9 % 39.7 %
EEMA 881 1,087 (19.0 )% 4.3 % 1,761 2,014
(12.6 )% 13.5 %
Asia 797 900 (11.4 )% (0.7 )% 1,731 1,815
(4.6 )% 5.1 %
Latin America & Canada 325 265 22.6 % 41.9
% 555 467 18.8 % 39.2 %
Total PMI $ 2,980
$ 2,963 0.6 % 23.5 %
$ 5,937 $ 5,985 (0.8 )%
20.3 %
In the quarter, reported operating companies income of $3.0
billion was up by 0.6%. Excluding unfavorable currency of $680
million and the impact of acquisitions, operating companies income
increased by 23.6%, reflecting: favorable pricing and a favorable
asset impairment and exit cost comparison with the second quarter
of 2014 of $489 million related to the discontinuation of cigarette
production in the Netherlands and the factory closure in Australia;
partly offset by unfavorable volume/mix of $171 million, and higher
costs in EEMA, and Asia, mainly associated with the realignment of
production from hand-rolled to machine-made kretek cigarettes in
Indonesia.
Adjusted operating companies income is shown in the table below
and detailed in Schedule 11. Adjusted operating companies income
margin, excluding currency and acquisitions, increased by 0.7
points to 45.0%, as detailed in Schedule 11, reflecting the factors
mentioned above.
PMI
OCI
Second-Quarter
Six Months
Year-to-Date
(
in millions) Excl.
Excl.
2015
2014
Change
Curr.
2015
2014
Change
Curr.
Reported OCI $ 2,980 $ 2,963 0.6 % 23.5 % $ 5,937 $ 5,985
(0.8
)%
20.3 % Asset impairment & exit costs — (489 ) —
(512 )
Adjusted OCI $ 2,980 $
3,452 (13.7 )% 6.0 % $
5,937 $ 6,497 (8.6
)%
10.9 % Adjusted OCI Margin* 43.4 % 44.3 % (0.9
) 0.6 44.1 % 44.2 % (0.1 ) 1.7
*Margins are calculated as adjusted OCI,
divided by net revenues, excluding excise taxes.
SHIPMENT VOLUME &
MARKET SHARE
PMI cigarette shipment volume by Region is shown in the table
below.
PMI Cigarette
Shipment Volume by Region
Second-Quarter
Six Months
Year-to-Date
(million units)
2015
2014
Change
2015
2014
Change
European Union 48,159 49,913 (3.5 )% 90,880 91,618 (0.8 )%
EEMA 73,829 74,170 (0.5 )% 138,550 136,176 1.7 %
Asia
75,256 75,653 (0.5 )% 145,381 146,454 (0.7 )%
Latin America
& Canada 22,589 23,065 (2.1 )% 43,779 44,514 (1.7 )%
Total PMI 219,833 222,801 (1.3
)% 418,590 418,762 — %
2015 Second-Quarter and Six Months
Year-to-Date
In the quarter, PMI's cigarette shipment volume decreased by
1.3%, or by 1.4% excluding acquisitions. The decline was
principally due to the EU, mainly Italy. Estimated net inventory
movements in the quarter were favorable, driven mainly by Japan,
reflecting a positive comparison with the second quarter of 2014
that was impacted by retail trade inventory reductions following
the consumption tax-driven retail price increases of April 1, 2014.
Excluding these inventory movements, PMI's total cigarette shipment
volume decreased by 1.6%.
PMI cigarette shipment volume by brand is shown in the table
below.
PMI Cigarette
Shipment Volume by Brand
Second-Quarter
Six Months
Year-to-Date
(million units)
2015
2014
Change
2015
2014
Change
Marlboro 72,322 73,151 (1.1 )% 139,569 139,032 0.4 %
L&M 24,546 24,201 1.4 % 47,224 45,154 4.6 %
Parliament 11,514 12,394 (7.1 )% 21,084 22,307 (5.5 )%
Bond Street 11,777 11,137 5.8 % 20,957 20,415 2.7 %
Chesterfield 10,611 11,797 (10.1 )% 20,151 20,583 (2.1 )%
Philip Morris 8,831 7,779 13.5 % 16,593 15,808 5.0 %
Lark 8,270 6,879 20.2 % 14,714 13,706 7.4 %
Others
71,962 75,463 (4.6 )% 138,298 141,757 (2.4 )%
Total
PMI 219,833 222,801 (1.3 )%
418,590 418,762 — %
In the quarter, the decrease in cigarette shipment volume of
Marlboro reflected declines in: the EU, notably Italy and the
United Kingdom, partly offset by France and Spain; EEMA, notably
North Africa and Ukraine, partly offset by Saudi Arabia and Turkey;
and Latin America & Canada, mainly Argentina, Brazil and
Mexico. Cigarette shipment volume of Marlboro increased in Asia,
driven by the Philippines and Vietnam, partly offset by Indonesia
and Japan.
The increase in cigarette shipment volume of L&M was driven
by growth in EEMA, notably Egypt, Turkey and Ukraine, partly offset
by a decline in the EU, mainly Spain, and in Asia, mainly Thailand.
The decrease in cigarette shipment volume of Parliament was
primarily due to Japan, Korea and Ukraine. The increase in
cigarette shipment volume of Bond Street was predominantly driven
by Australia and Russia, partly offset by Kazakhstan and Ukraine.
The decrease in cigarette shipment volume of Chesterfield was
primarily due to the EU, mainly Italy and Spain, and EEMA, mainly
Russia, Turkey and Ukraine. The increase in cigarette shipment
volume of Philip Morris primarily reflects the morphing from Diana
in Italy. The increase in cigarette shipment volume of Lark was
predominantly driven by Japan, benefiting from trade inventory
movements, partly offset by Korea and Turkey.
Total shipment volume of OTP, in cigarette equivalent units,
increased by 3.3%. Total shipment volume for cigarettes and OTP, in
cigarette equivalent units, decreased by 1.2%, excluding
acquisitions.
PMI's cigarette market share increased in a number of key
markets, including Algeria, Argentina, Austria, Belgium, Brazil,
Egypt, France, Germany, Hong Kong, Indonesia, Korea, Russia, Saudi
Arabia, Singapore, Spain and Switzerland.
Year-to-date, PMI's cigarette shipment volume was flat, or down
by 0.1% excluding acquisitions, with growth in EEMA, driven
principally by Russia and Saudi Arabia, offset by declines in: the
EU, mainly Italy; Asia, largely due to Korea and the Philippines,
partly offset by Indonesia; and Latin America & Canada, mainly
due to Argentina. Estimated net inventory movements year-to-date
were favorable, driven mainly by Japan. Excluding these inventory
movements, PMI's total cigarette shipment volume decreased by
1.0%.
Year-to-date, the increase in cigarette shipment volume of
Marlboro reflected growth in: the EU, notably France and Spain,
partly offset by Italy; and EEMA, notably Turkey and Saudi Arabia,
partly offset by Egypt and Ukraine. Cigarette shipment volume of
Marlboro decreased in: Asia, mainly due to Japan and Korea, partly
offset by the Philippines; and Latin America & Canada, mainly
due to Argentina.
The increase in cigarette shipment volume of L&M was driven
by growth in EEMA, notably Egypt, Turkey and Ukraine, partly offset
by a decline in the EU, mainly Spain. The decrease in cigarette
shipment volume of Parliament was primarily due to Japan, Korea and
Ukraine, partly offset by Turkey. The increase in cigarette
shipment volume of Bond Street was predominantly driven by
Australia and Russia, partly offset by Kazakhstan and Ukraine. The
decrease in cigarette shipment volume of Chesterfield was primarily
due to EEMA, mainly Russia, Turkey and Ukraine, partly offset by
the EU, mainly Italy. The increase in cigarette shipment volume of
Philip Morris primarily reflects the morphing from Diana in Italy,
partly offset by the morphing to Lark in Japan. The increase in
cigarette shipment volume of Lark was predominantly driven by
Japan, benefiting from trade inventory movements, partly offset by
Korea and Turkey.
Total shipment volume of OTP, in cigarette equivalent units,
increased by 2.7%. Total shipment volume for cigarettes and OTP, in
cigarette equivalent units, was flat, excluding acquisitions.
PMI's cigarette market share increased in a number of key
markets, including Algeria, Argentina, Austria, Belgium, Brazil,
Egypt, France, Germany, Hong Kong, Indonesia, Korea, Poland,
Russia, Saudi Arabia, Singapore, Spain and Switzerland.
EUROPEAN UNION REGION
(EU)
2015 Second-Quarter
Reported net revenues of $2.0 billion decreased by 16.9%.
Excluding unfavorable currency of $488 million, net revenues
increased by 3.5%, or by 3.3% excluding currency and the impact of
acquisitions, reflecting favorable pricing of $139 million across
the Region, notably in Germany and Italy, partly offset by
unfavorable volume/mix of $60 million, mainly due to unfavorable
inventory movements and lower market share in Italy and a lower
total market and market share in the United Kingdom.
Reported operating companies income of $977 million increased by
37.4%. Excluding unfavorable currency of $279 million and the
impact of acquisitions, operating companies income increased by
76.9%, reflecting higher pricing and a favorable asset impairment
and exit cost comparison with the second quarter of 2014 of $488
million related to the discontinuation of cigarette production in
the Netherlands, partly offset by unfavorable volume/mix of $53
million.
Adjusted operating companies income is shown in the table below
and detailed on Schedule 11. Adjusted operating companies income
margin, excluding unfavorable currency and the impact of
acquisitions, increased by 0.8 points to 50.9%, as detailed in
Schedule 11, reflecting the factors mentioned above.
EU
OCI
Second-Quarter
Six Months
Year-to-Date
(in millions) Excl.
Excl.
2015
2014
Change
Curr.
2015
2014
Change
Curr.
Reported OCI $ 977 $ 711 37.4 % 76.7 % $ 1,890 $ 1,689 11.9
% 39.7 % Asset impairment & exit costs — (488 ) —
(488 )
Adjusted OCI $ 977 $
1,199 (18.5 )% 4.8 % $
1,890 $ 2,177 (13.2 )%
8.4 % Adjusted OCI Margin* 49.1 % 50.1 % (1.0
) 0.6 48.7 % 49.4 % (0.7 ) 1.4
*Margins are calculated as adjusted OCI,
divided by net revenues, excluding excise taxes.
2015 Second-Quarter and Six Months
Year-to-Date
The total cigarette market in the EU of 117.1 billion units
decreased by 3.0% in the quarter and by 2.3% to 221.8 billion units
year-to-date. Excluding the impact of estimated trade inventory
movements, the total cigarette market declined by 2.3% in the
quarter and by 2.5% year-to-date, reflecting, in certain key
geographies, improving economies, a moderation in the level of
illicit trade, lower out-switching to the fine cut category and a
lower prevalence of e-vapor products. In 2015, the total cigarette
market in the EU is now forecast to decrease by approximately 3.0%
to 3.5%.
The total OTP market in the EU in the quarter of 41.5 billion
cigarette equivalent units decreased by 0.5%, reflecting a lower
total fine cut market, down by 0.1% to 36.2 billion cigarette
equivalent units. Year-to-date, the total OTP market in the EU of
79.2 billion cigarette equivalent units decreased by 1.1%,
reflecting a lower total fine cut market, down by 1.0% to 69.2
billion cigarette equivalent units.
Cigarette shipment volume and market share performance by brand
are shown in the tables below.
EU Cigarette
Shipment Volume by Brand
Second-Quarter
Six Months
Year-to-Date
(in millions)
2015
2014
Change
2015
2014
Change
Marlboro 23,554 23,913 (1.5 )% 44,346 44,144 0.5 %
L&M 8,528 8,717 (2.2 )% 15,926 16,122 (1.2 )%
Chesterfield 6,905 7,501 (7.9 )% 13,210 12,908 2.3 %
Philip Morris 3,634 2,590 40.3 % 6,016 4,941 21.8 %
Others 5,538 7,192 (23.0 )% 11,382 13,503 (15.7 )%
Total
EU 48,159 49,913 (3.5 )%
90,880 91,618 (0.8 )%
EU Cigarette
Market Shares by Brand
Second-Quarter
Six Months
Year-to-Date
Change
Change
2015
2014
p.p.
2015
2014
p.p.
Marlboro 19.6 % 19.4 % 0.2 19.4 % 19.3 % 0.1
L&M
7.3 % 7.2 % 0.1 7.2 % 7.1 % 0.1
Chesterfield 5.8 % 5.7 % 0.1
5.8 % 5.4 % 0.4
Philip Morris 2.5 % 2.2 % 0.3 2.4 % 2.1 %
0.3
Others 5.2 % 5.9 % (0.7 ) 5.2 % 5.9 % (0.7 )
Total
EU 40.4 % 40.4 % —
40.0 % 39.8 % 0.2
In the quarter, PMI's cigarette shipment volume of 48.2 billion
units decreased by 3.5%, or by 2.9% excluding inventory movements,
mainly due to Italy and Spain, partly offset by France. Market
share was flat at 40.4%, with gains, mainly in France, Germany and
Spain, mainly offset by Italy.
In the quarter, PMI's shipments of OTP of 6.1 billion cigarette
equivalent units increased by 3.6%, driven principally by higher
market share. PMI's total OTP market share increased by 0.2 points
to 14.5%, reflecting a gain in the fine cut category.
Year-to-date, PMI's cigarette shipment volume of 90.9 billion
units decreased by 0.8%, or by 1.4% excluding inventory movements,
notably due to Italy, partly offset by France and Spain. Market
share increased by 0.2 points to 40.0%, driven notably by France,
Germany and Spain, partly offset by the United Kingdom.
Year-to-date, PMI's shipments of OTP of 11.6 billion cigarette
equivalent units increased by 3.7%, driven principally by higher
market share. PMI's total OTP market share increased by 0.2 points
to 14.4%, reflecting a slight gain in the fine cut category.
EU Key Market
Commentaries
In France, industry size, PMI cigarette shipment volume
and market share performance are shown in the table below.
France Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 11.8 11.8 0.1 % 22.4
22.3 0.3 %
PMI Shipments (million units) 5,126 4,816
6.4 % 9,704 9,378 3.5 %
PMI Cigarette Market Share
Marlboro 25.9 % 25.5 % 0.4 25.7 % 25.3 % 0.4 Philip Morris 9.6 %
9.4 % 0.2 9.6 % 9.4 % 0.2 Chesterfield 3.3 % 3.4 % (0.1 ) 3.3 % 3.4
% (0.1 ) Others 3.0 % 3.1 % (0.1 ) 2.9 % 3.1 % (0.2 )
Total
41.8 % 41.4 % 0.4 41.5
% 41.2 % 0.3
In the quarter, the total cigarette market was essentially flat,
reflecting its general recovery since the second half of 2014 and a
lower prevalence of e-vapor products. Excluding the net impact of
inventory movements, PMI's cigarette shipment volume increased by
0.9%, reflecting market share growth, notably of premium brands
Marlboro and Philip Morris. The total industry fine cut category of
3.7 billion cigarette equivalent units increased by 7.2%. PMI's
market share of the category decreased by 1.6 points to 25.0%.
Year-to-date, the increase in the total cigarette market
reflected the same dynamics as in the quarter. Excluding the net
impact of inventory movements, PMI's cigarette shipment volume
increased by 1.2%, reflecting market share growth, notably of
premium brands Marlboro and Philip Morris. The total industry fine
cut category of 7.0 billion cigarette equivalent units increased by
6.2%. PMI's market share of the category decreased by 1.3 points to
25.0%.
In Germany, industry size, PMI cigarette shipment volume
and market share performance are shown in the table below.
Germany Key
Market Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 19.9 20.9 (5.0 )%
38.0 39.1 (2.7 )%
PMI Shipments (million units) 7,756
7,732 0.3 % 14,501 14,440 0.4 %
PMI Cigarette Market
Share Marlboro 23.0 % 21.8 % 1.2 22.5 % 21.9 % 0.6 L&M 12.7
% 11.9 % 0.8 12.5 % 11.8 % 0.7 Chesterfield 1.8 % 1.7 % 0.1 1.7 %
1.7 % — Others 1.5 % 1.5 % — 1.4 % 1.5 % (0.1 )
Total
39.0 % 36.9 % 2.1 38.1
% 36.9 % 1.2
In the quarter, the decline of the total cigarette market was
mainly due to unfavorable trade inventory movements. Excluding
these inventory movements, the total cigarette market declined by
2.2%, mainly due to the annualized impact of price increases in the
third quarter of 2014, partly offset by a lower prevalence of
illicit trade. The increase in PMI's market share was driven by
Marlboro, mainly reflecting the positive impact of the new 2.0
Architecture, and L&M, benefiting from a rounded retail price
point of €5.00 per pack. While the total industry fine cut category
of 10.2 billion cigarette equivalent units decreased by 2.2%, PMI's
market share of the category increased by 0.4 points to 13.4%.
Year-to-date, the decline of the total cigarette market was
partly due to unfavorable trade inventory movements. Excluding
these inventory movements, the total cigarette market declined by
2.1%, reflecting the same dynamics as in the quarter. The increase
in PMI's market share was driven by the same factors as in the
quarter. While the total industry fine cut category of 19.7 billion
cigarette equivalent units decreased by 2.9%, PMI's market share of
the category was flat at 13.0%.
In Italy, industry size, PMI cigarette shipment volume
and market share performance are shown in the table below.
Italy Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 18.9 19.2 (1.6 )%
35.4 36.0 (1.7 )%
PMI Shipments (million units)
10,564 11,402 (7.3 )% 20,214 20,469 (1.2 )%
PMI Cigarette
Market Share Marlboro 24.1 % 25.0 % (0.9 ) 24.2 % 25.3 % (1.1 )
Chesterfield 10.8 % 10.0 % 0.8 10.7 % 7.7 % 3.0 Diana 6.2 % 8.5 %
(2.3 ) 6.9 % 9.2 % (2.3 ) Others 12.7 % 11.8 % 0.9 12.1 %
12.0 % 0.1
Total 53.8 % 55.3
% (1.5 ) 53.9 % 54.2
% (0.3 )
In the quarter and year-to-date, the decline in the total
cigarette market was mainly due to the tax-driven price increases
in January 2015 and out-switching to less expensive other tobacco
product categories, particularly fine cut, partly offset by a lower
prevalence of illicit trade and e-vapor products. Excluding the net
impact of inventory movements, PMI's cigarette shipment volume
decreased by 4.0% in the quarter and by 2.2% year-to-date,
reflecting market share loss, notably of Marlboro, largely due to
its price increase in the first quarter of 2015 to €5.20 per pack
from its round retail price point of €5.00 per pack, and low-price
Diana, which is currently being morphed into Philip Morris, and
which had been impacted by the growth of the super-low price
segment, partly offset by Chesterfield, reflecting the annualized
impact of the brand's repositioning into the super-low price
segment. In the quarter, the total industry fine cut category of
1.6 billion cigarette equivalent units increased by 6.2%. PMI's
market share of the category decreased by 0.9 points to 41.3%.
Year-to-date, the total industry fine cut category of 3.1 billion
cigarette equivalent units increased by 5.2%. PMI's market share of
the category decreased by 0.3 points to 41.4%.
In Poland, industry size, PMI cigarette shipment volume
and market share performance are shown in the table below.
Poland Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 10.6 11.1 (4.7 )%
20.3 21.6 (5.7 )%
PMI Shipments (million units) 4,266
4,489 (5.0 )% 8,023 8,159 (1.7 )%
PMI Cigarette Market
Share Marlboro 11.4 % 10.9 % 0.5 11.0 % 10.6 % 0.4 L&M 17.9
% 17.8 % 0.1 17.7 % 17.1 % 0.6 Chesterfield 8.6 % 7.9 % 0.7 8.3 %
7.5 % 0.8 Others 2.4 % 3.8 % (1.4 ) 2.4 % 3.6 % (1.2 )
Total
40.3 % 40.4 % (0.1 )
39.4 % 38.8 % 0.6
In the quarter and year-to-date, the decline in the total
cigarette market was mainly due the prevalence of e-vapor products,
illicit trade and non-duty paid OTP products. While PMI's cigarette
shipment volume in the quarter and year-to-date decreased,
reflecting a lower total market, market share was essentially flat
in the quarter, and up by 0.6 points year-to-date, with declines
from super-low price brands Red & White and RGD offset by
Marlboro, partly reflecting the positive impact of the new 2.0
Architecture, L&M, driven by new product launches, and
Chesterfield, partly driven by its round corner box super-slims
variants. In the quarter, the total industry fine cut category of
1.0 billion cigarette equivalent units increased by 12.7%. PMI's
market share of the category decreased by 2.2 points to 33.1%.
Year-to-date, the total industry fine cut category of 2.0 billion
cigarette equivalent units increased by 5.1%. PMI's market share of
the category decreased by 1.7 points to 33.4%.
In Spain, industry size, PMI cigarette shipment volume
and market share performance are shown in the table below.
Spain Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 11.8 12.3 (4.1 )%
22.3 22.8 (2.4 )%
PMI Shipments (million units) 4,121
4,337 (5.0 )% 7,688 7,524 2.2 %
PMI Cigarette Market
Share Marlboro 16.8 % 15.8 % 1.0 16.4 % 15.5 % 0.9 Chesterfield
9.1 % 9.2 % (0.1 ) 9.3 % 9.3 % — L&M 5.9 % 6.1 % (0.2 ) 5.9 %
6.2 % (0.3 ) Others 1.4 % 0.9 % 0.5 1.4 % 0.7 % 0.7
Total 33.2 % 32.0 % 1.2
33.0 % 31.7 % 1.3
In the quarter and year-to-date, the decline of the total
cigarette market was mainly due to unfavorable trade inventory
movements. Excluding these inventory movements, the total cigarette
market declined by 0.5% in the quarter and by 1.0% year-to-date,
mainly due to the impact of price increases in the second half of
2014 and the first quarter of 2015, partly offset by an improving
economy, a lower prevalence of illicit trade and e-vapor products,
and in-switching from fine cut. Excluding inventory movements,
PMI's cigarette shipment volume decreased by 0.4% in the quarter
and increased by 1.6% year-to-date. The increase in PMI's market
share in the quarter and year-to-date was driven mainly by
Marlboro, benefiting from a round price point in the vending
channel, the new 2.0 Architecture, and an improving economy. In the
quarter, the total industry fine cut category of 2.5 billion
cigarette equivalent units decreased by 2.2%. PMI's market share of
the fine cut category decreased by 1.2 points to 13.5%.
Year-to-date, the total industry fine cut category of 4.7 billion
cigarette equivalent units decreased by 1.5%. PMI's market share of
the fine cut category decreased by 1.3 points to 13.9%.
EASTERN EUROPE, MIDDLE
EAST & AFRICA REGION (EEMA)
2015 Second-Quarter
Reported net revenues of $1.9 billion decreased by 15.9%.
Excluding unfavorable currency of $464 million and the impact of
acquisitions, net revenues increased by 4.3%, reflecting favorable
pricing of $142 million, driven principally by Russia and Ukraine,
partly offset by unfavorable volume/mix of $43 million, mainly due
to Kazakhstan and Ukraine.
Reported operating companies income of $881 million decreased by
19.0%. Excluding unfavorable currency of $253 million and the
impact of acquisitions, operating companies income increased by
4.4%, driven primarily by higher pricing, partly offset by
unfavorable volume/mix of $39 million.
Adjusted operating companies income is shown in the table below
and detailed on Schedule 11. Adjusted operating companies income
margin, excluding unfavorable currency and the impact of
acquisitions, was flat at 47.6%, as detailed on Schedule 11,
reflecting the factors mentioned above.
EEMA
OCI
Second-Quarter
Six Months
Year-to-Date
(in millions) Excl.
Excl.
2015
2014
Change
Curr.
2015
2014
Change
Curr.
Reported OCI $ 881 $ 1,087 (19.0 )% 4.3 % $ 1,761 $ 2,014
(12.6 )% 13.5 % Asset impairment & exit costs — —
— —
Adjusted OCI $ 881 $
1,087 (19.0 )% 4.3 % $
1,761 $ 2,014 (12.6 )%
13.5 % Adjusted OCI Margin* 45.9 % 47.6 % (1.7
) — 46.8 % 46.9 % (0.1 ) 2.0
*Margins are calculated as adjusted OCI,
divided by net revenues, excluding excise taxes.
2015 Second-Quarter and Six Months
Year-to-Date
In the quarter, PMI's cigarette shipment volume of 73.8 billion
units decreased by 0.5%, or by 0.6% excluding acquisitions. The
decline was principally due to Kazakhstan, reflecting a lower total
market and share, and Ukraine, partly offset by Russia and the
Middle East, notably Saudi Arabia. PMI's cigarette shipment volume
of premium brands decreased by 2.5%, mainly due to: Marlboro, down
by 3.1% to 21.1 billion units, principally due to Egypt and
Ukraine, partly offset by Saudi Arabia, and Turkey; and Parliament,
down by 2.1% to 8.8 billion units, mainly due to Ukraine. PMI's
cigarette shipment volume of L&M increased by 5.4% to 13.2
billion units, driven by Egypt, Turkey and Ukraine, partially
offset by Russia.
Year-to-date, PMI's cigarette shipment volume of 138.6 billion
units increased by 1.7%, or by 1.6% excluding acquisitions, mainly
driven by Russia and the Middle East, notably Saudi Arabia, partly
offset by Kazakhstan and Ukraine. PMI's cigarette shipment volume
of premium brands increased by 1.8%, mainly driven by: Marlboro, up
by 2.8% to 41.4 billion units, driven notably by Saudi Arabia and
Turkey, partly offset by Egypt and Ukraine; and Parliament, up by
0.2% to 16.2 billion units, driven principally by Turkey, partly
offset by Ukraine. PMI's cigarette shipment volume of L&M
increased by 9.6% to 25.5 billion units, driven by Egypt, Turkey
and Ukraine.
EEMA Key Market
Commentaries
In North Africa, estimated industry size, PMI cigarette
shipment volume and market share performance are shown in the table
below.
North Africa Key
Market Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 34.8 36.1 (3.8 )%
67.1 70.6 (4.9 )%
PMI Shipments (million units) 8,806
9,204 (4.3 )% 18,008 17,760 1.4 %
PMI Cigarette Market
Share Marlboro 13.9 % 14.2 % (0.3 ) 14.3 % 14.7 % (0.4 )
L&M 10.6 % 8.4 % 2.2 10.7 % 8.2 % 2.5 Others 1.8 % 1.8 % —
1.9 % 1.8 % 0.1
Total 26.3 %
24.4 % 1.9 26.9 % 24.7
% 2.2
In the quarter, the decline of the estimated total market was
principally due to Algeria, Egypt, mainly reflecting the impact of
excise tax-driven price increases in July 2014 and February 2015,
partly offset by Libya and Tunisia. Year-to-date, the estimated
total market decreased by 4.9%, due to Algeria, Egypt, Libya and
Morocco, partly offset by Tunisia. The decline in PMI's cigarette
shipment volume in the quarter mainly reflected the lower total
market, notably in Egypt, partly offset by higher market share.
PMI's cigarette shipment volume year-to-date increased by 1.4%.
PMI's market share growth in the quarter and year-to-date was
driven mainly by L&M in Egypt, reflecting improved territorial
coverage, brand building activities and the growth of round corner
box versions, partly offset by Marlboro mainly in Egypt.
In Russia, estimated industry size, PMI cigarette
shipment volume and May quarter-to-date and year-to-date market
share performance, as measured by Nielsen, are shown in the table
below.
Russia Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 77.2 80.6 (4.2 )%
138.6 148.3 (6.5 )%
PMI Shipments (million units)
23,075 21,906 5.3 % 42,084 40,495 3.9 %
PMI Cigarette
Market Share Marlboro 1.4 % 1.6 % (0.2 ) 1.4 % 1.6 % (0.2 )
Parliament 3.8 % 3.6 % 0.2 3.9 % 3.5 % 0.4 Bond Street 8.1 % 7.4 %
0.7 8.0 % 7.2 % 0.8 Others 14.3 % 14.2 % 0.1 14.3 % 14.5 %
(0.2 )
Total 27.6 % 26.8 %
0.8 27.6 % 26.8 % 0.8
In the quarter and year-to-date, the decline of the estimated
total cigarette market was mainly due to the unfavorable impact of
tax-driven prices increases and lower consumer purchasing power as
a result of a weak economy. The increase in PMI's cigarette
shipment volume in the quarter and year-to-date largely reflected
market share growth. The increase in PMI's market share in the
quarter and year-to-date was driven by above premium price
Parliament and low-price Bond Street.
In Turkey, estimated industry size, PMI cigarette
shipment volume and May quarter-to-date and year-to-date market
share performance, as measured by Nielsen, are shown in the table
below.
Turkey Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 25.8 24.1 7.2 % 45.8
42.2 8.5 %
PMI Shipments (million units) 12,012
12,248 (1.9 )% 21,283 21,205 0.4 %
PMI Cigarette Market
Share Marlboro 9.3 % 8.6 % 0.7 9.1 % 8.6 % 0.5 Parliament 11.6
% 10.8 % 0.8 11.5 % 10.6 % 0.9 Lark 7.4 % 9.9 % (2.5 ) 7.3 % 10.1 %
(2.8 ) Others 15.0 % 15.6 % (0.6 ) 15.4 % 15.3 % 0.1
Total 43.3 % 44.9 % (1.6
) 43.3 % 44.6 % (1.3
)
In the quarter, the increase in the estimated total cigarette
market mainly reflected an increase in the adult population and a
lower prevalence of illicit trade. Year-to-date, the increase in
the total cigarette market reflected the same dynamics as in the
quarter, as well as the favorable net impact of estimated trade
inventory movements. Excluding these inventory movements, the total
cigarette market increased by 6.8%. The decrease in PMI's cigarette
shipment volume in the quarter was mainly due to market share loss
in the low price segment. PMI's cigarette shipment volume
year-to-date increased by 0.4%. In the quarter and year-to-date,
the decrease in PMI's market share was primarily due to low-price
Lark, reflecting the impact of price repositioning by PMI's
principal competitor in May 2014. The decline was partly offset by
PMI's premium brands, notably Parliament, reflecting its
strengthening brand equity, and by up-trading from the mid-price
segment.
In Ukraine, estimated industry size, PMI cigarette
shipment volume and May quarter-to-date and year-to-date market
share performance, as measured by Nielsen, are shown in the table
below.
Ukraine Key
Market Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 18.9 20.4 (7.5 )%
33.6 34.7 (3.1 )%
PMI Shipments (million units) 5,070
6,176 (17.9 )% 9,678 11,287 (14.3 )%
PMI Cigarette Market
Share Marlboro 3.9 % 4.9 % (1.0 ) 4.3 % 5.0 % (0.7 ) Parliament
2.8 % 2.9 % (0.1 ) 2.9 % 3.0 % (0.1 ) Bond Street 7.9 % 9.2 % (1.3
) 7.9 % 9.3 % (1.4 ) Others 15.8 % 15.6 % 0.2 16.2 % 15.6 %
0.6
Total 30.4 % 32.6 %
(2.2 ) 31.3 % 32.9 %
(1.6 )
In the quarter and year-to-date, the decline of the estimated
total cigarette market was mainly due to lower consumer purchasing
power as a result of a weak economy, and continued business
disruption due to the political instability in the east of the
country, partly offset by a lower prevalence of illicit trade. The
decrease in PMI's cigarette shipment volume in the quarter and
year-to-date largely reflected a lower total market and market
share loss. The decrease in PMI's market share in the quarter and
year-to-date was due to Marlboro, reflecting the impact of lower
consumer purchasing power, and Bond Street, mainly resulting from
competitive price pressure in the low price segment. The
year-to-date share growth of "Others" was mainly driven by growth
of low-price L&M and super low-price President, partly offset
by mid-price Chesterfield and super low-price Optima.
ASIA
REGION
2015 Second-Quarter
Reported net revenues of $2.1 billion decreased by 7.2%.
Excluding unfavorable currency of $229 million, net revenues
increased by 2.7%, driven by favorable pricing of $105 million,
mainly in Australia, Indonesia and Korea, principally driven by a
gain from inventories built ahead of the announced excise tax
increase effective January 2015. The favorable pricing was
partially offset by unfavorable volume/mix of $42 million, mainly
due to a lower total market and market share in Australia and a
lower total market in Indonesia and Korea, partly offset by a
higher total market and favorable inventory movements in Japan and
a higher estimated total tax-paid market and improved mix in the
Philippines.
Reported operating companies income of $797 million decreased by
11.4%. Excluding unfavorable currency of $97 million, operating
companies income decreased by 0.7%, reflecting unfavorable
volume/mix of $55 million and higher costs, mainly related to:
distribution expenses and the realignment of production from
hand-rolled to machine-made kretek cigarettes in Indonesia; and the
commercialization of the company's Reduced-Risk Product, iQOS, in
Japan; partly offset by favorable pricing.
Adjusted operating companies income is shown in the table below
and detailed on Schedule 11. Adjusted operating companies income
margin, excluding unfavorable currency and the impact of
acquisitions, decreased by 1.3 points to 37.7%, as detailed on
Schedule 11, reflecting the factors mentioned above.
Asia
OCI
Second-Quarter
Six Months
Year-to-Date
(in millions) Excl.
Excl.
2015
2014
Change
Curr.
2015
2014
Change
Curr.
Reported OCI $ 797 $ 900 (11.4 )% (0.7 )% $ 1,731 $ 1,815
(4.6 )% 5.1 % Asset impairment & exit costs — (1 ) —
(24 )
Adjusted OCI $ 797 $
901 (11.5 )% (0.8 )% $
1,731 $ 1,839 (5.9 )% 3.7
% Adjusted OCI Margin* 37.2 % 39.0 % (1.8 ) (1.3 )
40.3 % 40.9 % (0.6 ) —
*Margins are calculated as adjusted OCI,
divided by net revenues, excluding excise taxes.
2015 Second-Quarter and Six Months
Year-to-Date
In the quarter, PMI's cigarette shipment volume of 75.3 billion
units decreased by 0.5%, largely due to Australia, mainly
reflecting the lower total market, Indonesia, Korea and the
Philippines. The decrease was partly offset by higher cigarette
shipment volume in Japan, mainly driven by a higher total market
and favorable net trade inventory movements. Excluding these
inventory movements, PMI's cigarette shipment volume decreased by
1.8%.
Cigarette shipment volume of Marlboro of 18.9 billion units
increased by 2.2%, predominantly driven by the Philippines and
Vietnam, partly offset by Indonesia and Japan. Cigarette shipment
volume of Parliament of 2.4 billion units decreased by 21.8%, due
to Japan and Korea. Cigarette shipment volume of Lark of 5.7
billion units increased by 53.3%, driven by Japan, benefiting from
trade inventory movements.
Year-to-date, PMI's cigarette shipment volume of 145.4 billion
units decreased by 0.7%, mainly due to Korea and the Philippines,
partly offset by Indonesia. Estimated net inventory movements
year-to-date were favorable, driven by Japan. Excluding these
inventory movements, PMI's cigarette volume decreased by 1.4%.
Cigarette shipment volume of Marlboro of 36.9 billion units
decreased by 1.6%, predominantly due to Japan and Korea, partly
offset by the Philippines. Cigarette shipment volume of Parliament
of 4.3 billion units decreased by 22.5%, due to Japan and Korea.
Cigarette shipment volume of Lark of 10.2 billion units increased
by 23.2%, driven by Japan, benefiting from trade inventory
movements.
Asia Key Market
Commentaries
In Indonesia, estimated industry size, PMI cigarette
shipment volume and market share performance are shown in the table
below.
Indonesia Key
Market Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 78.6 82.4 (4.6 )%
156.9 156.2 0.4 %
PMI Shipments (million units)
27,659 28,598 (3.3 )% 55,343 54,133 2.2 %
PMI Cigarette
Market Share Sampoerna A 15.0 % 14.1 % 0.9 15.0 % 14.2 % 0.8
Dji Sam Soe 7.0 % 6.2 % 0.8 7.0 % 5.9 % 1.1 U Mild 4.9 % 5.6 % (0.7
) 5.0 % 5.4 % (0.4 ) Others 8.3 % 8.8 % (0.5 ) 8.3 % 9.1 % (0.8 )
Total 35.2 % 34.7 % 0.5
35.3 % 34.6 % 0.7
In the quarter, the decline of the estimated total market was
mainly due to a soft economic environment. Year-to-date, the
estimated total market increased by 0.4%. The decline in PMI's
cigarette shipment volume in the quarter mainly reflected U Mild's
crossing a critical price point ahead of competition earlier in the
year, and the impact of the softer macro-economic environment. The
increase in PMI's cigarette shipment volume year-to-date mainly
reflected market share growth. PMI's market share growth in the
quarter and year-to-date was driven by a strong performance from
its machine-made kretek brands, notably Sampoerna A, Dji Sam Soe
Magnum and Dji Sam Soe Magnum Blue, partly offset by U Mild and a
decline in its hand-rolled kretek portfolio, notably due to
Sampoerna Hijau in "Others," down by 0.5 points to 2.9%, largely
reflecting the decline of the total segment. While Marlboro's
market share decreased slightly by 0.1 point to 5.1%, its share of
the “white” cigarettes segment, which represented 6.2% of the total
cigarette market, increased by 2.0 points to 81.3%. The
machine-made kretek segment, representing 75.0% of the total
cigarette market, increased by 1.6 points and PMI's share of the
segment increased by 1.1 points to 30.7%. The hand-rolled kretek
segment, representing 18.8% of the total cigarette market,
decreased by 1.3 points. PMI's share of the segment decreased by
1.1 points to 37.9%.
In Japan, industry size, PMI cigarette shipment volume
and market share performance are shown in the table below.
Japan Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 46.0 41.5 11.0 % 88.5
90.9 (2.5 )%
PMI Shipments (million units) 13,552
11,750 15.3 % 25,398 25,237 0.6 %
PMI Cigarette Market
Share Marlboro 11.3 % 11.5 % (0.2 ) 11.4 % 11.7 % (0.3 )
Parliament 2.3 % 2.4 % (0.1 ) 2.3 % 2.2 % 0.1 Lark 10.0 % 10.4 %
(0.4 ) 10.0 % 9.8 % 0.2 Others 1.8 % 2.1 % (0.3 ) 1.8 % 2.2 % (0.4
)
Total 25.4 % 26.4 %
(1.0 ) 25.5 % 25.9 %
(0.4 )
In the quarter, the increase of the total cigarette market
primarily reflected a favorable comparison with the second quarter
of 2014 in which the total market decreased by 14.4%, mainly driven
by unfavorable estimated retail trade inventory movements following
the consumption tax-driven retail price increases of April, 2014.
Excluding the impact of these inventory movements, the total
cigarette market declined by 1.7%, mainly reflecting the
unfavorable impact of price increases. Year-to-date, the total
market declined by 2.5% and by 2.6% excluding estimated retail
trade inventory movements. The increase of PMI's cigarette shipment
volume in the quarter mainly reflected the higher total market and
favorable trade inventory movements. PMI's cigarette shipment
volume year-to-date increased by 0.6%. Excluding the impact of
estimated retail trade inventory movements, PMI's market share in
the quarter and year-to-date declined by 0.4 and 0.3 points,
respectively.
In Korea, industry size, PMI cigarette shipment volume
and market share performance are shown in the table below.
Korea Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 18.1 22.4 (19.2 )%
30.7 41.8 (26.6 )%
PMI Shipments (million units)
3,732 4,404 (15.3 )% 6,190 8,230 (24.8 )%
PMI Cigarette
Market Share Marlboro 9.2 % 7.6 % 1.6 9.2 % 7.8 % 1.4
Parliament 7.1 % 7.2 % (0.1 ) 6.9 % 7.2 % (0.3 ) Virginia S. 3.8 %
4.0 % (0.2 ) 3.8 % 4.0 % (0.2 ) Others 0.6 % 0.8 % (0.2 ) 0.5 % 0.7
% (0.2 )
Total 20.7 % 19.6 %
1.1 20.4 % 19.7 % 0.7
In the quarter, the decline of total cigarette market reflected
the impact of the January 2015 excise tax increase and related
retail price increases. Year-to-date, the total market declined by
26.6%, or by 20.2% excluding the impact of estimated inventory
movements associated with the timing of the excise tax increase.
The decline in PMI's cigarette shipment volume in the quarter and
year-to-date was in line with the lower total market, partly offset
by share growth, driven by Marlboro, reflecting the positive impact
of line-pricing to PMI's principal domestic competitor's main
brands.
In the Philippines, estimated tax-paid industry size, PMI
cigarette shipment volume and market share performance are shown in
the table below.
Philippines Key
Market Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 21.2 20.0 6.0 % 39.8
38.8 2.7 %
PMI Shipments (million units) 16,725
17,243 (3.0 )% 32,629 33,408 (2.3 )%
PMI Cigarette Market
Share Marlboro 20.2 % 18.1 % 2.1 21.1 % 18.7 % 2.4 Fortune 32.1
% 36.0 % (3.9 ) 32.5 % 34.7 % (2.2 ) Jackpot 13.7 % 17.6 % (3.9 )
15.2 % 17.7 % (2.5 ) Others 12.9 % 14.5 % (1.6 ) 13.2 % 15.1 % (1.9
)
Total 78.9 % 86.2 %
(7.3 ) 82.0 % 86.2 %
(4.2 )
In the quarter and year-to-date, the increase in the estimated
total tax-paid industry cigarette volume reflected higher estimated
duty-paid volume by PMI's principal domestic competitor. The
decline in PMI's cigarette shipment volume in both periods was
mainly due to lower consumption of low and super-low price brands,
following consecutive price increases in late 2014 and early 2015,
partly offset by the growth of Marlboro, reflecting the narrowing
of retail price gaps with brands at the bottom end of the
market.
LATIN AMERICA &
CANADA REGION
2015 Second-Quarter
Reported net revenues of $807 million decreased by 0.4%.
Excluding unfavorable currency of $112 million and the impact of
acquisitions, net revenues increased by 13.1%, driven by favorable
pricing of $128 million, principally in Argentina, Brazil, Canada
and Mexico, partially offset by unfavorable volume/mix of $22
million, principally due to a lower market share in Canada.
Reported operating companies income of $325 million increased by
22.6%. Excluding unfavorable currency of $51 million and the impact
of acquisitions, operating companies income increased by 41.1%,
principally reflecting favorable pricing, partly offset by
unfavorable volume/mix of $24 million.
Adjusted operating companies income is shown in the table below
and detailed on Schedule 11. Adjusted operating companies income
margin, excluding unfavorable currency and the impact of
acquisitions, increased by 8.1 points to 40.8%, as detailed on
Schedule 11, reflecting the factors mentioned above.
Latin America
& Canada OCI
Second-Quarter
Six Months
Year-to-Date
(in millions) Excl.
Excl.
2015
2014
Change
Curr.
2015
2014
Change
Curr.
Reported OCI $ 325 $ 265 22.6 % 41.9 % $ 555 $ 467 18.8 %
39.2 % Asset impairment & exit costs — — —
—
Adjusted OCI $ 325 $
265 22.6 % 41.9 % $
555 $ 467 18.8 % 39.2
% Adjusted OCI Margin* 40.3 % 32.7 % 7.6 8.2 36.2 %
30.7 % 5.5 6.8
*Margins are calculated as adjusted OCI,
divided by net revenues, excluding excise taxes.
2015 Second-Quarter and Six Months
Year-to-Date
In the quarter, PMI's cigarette shipment volume of 22.6 billion
units decreased by 2.1%, notably due to Argentina and Mexico.
Although shipment volume of Marlboro of 8.8 billion units decreased
by 2.1%, its Regional market share increased by 0.2 points to an
estimated 14.9%. Market share of Marlboro increased notably in
Argentina, Brazil and Colombia, by 0.5, 0.2 and 1.4 points to
24.3%, 9.4% and 9.1%, respectively. Shipment volume of Philip
Morris of 4.6 billion units increased by 2.2%, driven notably by
Canada.
Year-to-date, PMI's cigarette shipment volume of 43.8 billion
units decreased by 1.7%, largely due to Argentina and Canada.
Although shipment volume of Marlboro of 17.0 billion units
decreased by 1.3%, its Regional market share increased by 0.4
points to an estimated 14.8%. Market share of Marlboro increased
notably in Argentina, Brazil and Colombia, by 0.4, 0.7 and 1.4
points to 24.4%, 9.5% and 9.0%, respectively. Shipment volume of
Philip Morris of 9.4 billion units increased by 1.6%, driven
notably by Canada.
Latin America & Canada Key Market
Commentaries
In Argentina, industry size, PMI cigarette shipment
volume and market share performance are shown in the table
below.
Argentina Key
Market Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 9.4 10.0 (5.3 )% 19.7
20.6 (4.4 )%
PMI Shipments (million units) 7,463
7,656 (2.5 )% 15,586 15,935 (2.2 )%
PMI Cigarette Market
Share Marlboro 24.3 % 23.8 % 0.5 24.4 % 24.0 % 0.4 Parliament
2.1 % 2.1 % — 2.1 % 2.1 % — Philip Morris 45.3 % 42.9 % 2.4 44.9 %
43.1 % 1.8 Others 7.1 % 7.5 % (0.4 ) 7.3 % 7.5 % (0.2 )
Total 78.8 % 76.3 % 2.5
78.7 % 76.7 % 2.0
In the quarter and year-to-date, the decline of the total
cigarette market was mainly due to the cumulative impact of price
increases in 2014 and 2015 and a challenging economic environment.
The decrease in PMI's shipment volume in the quarter and
year-to-date reflected a lower total market, partly offset by
market share growth, driven by Marlboro and Philip Morris,
reflecting the positive impact of the latter's capsule
variants.
In Canada, industry size, PMI cigarette shipment volume
and market share performance are shown in the table below.
Canada Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 7.3 7.3 0.6 % 12.8
13.1 (2.2 )%
PMI Shipments (million units) 2,647
2,707 (2.2 )% 4,700 4,932 (4.7 )%
PMI Cigarette Market
Share Belmont 3.2 % 2.9 % 0.3 3.1 % 2.9 % 0.2 Canadian Classics
10.2 % 10.3 % (0.1 ) 10.4 % 10.7 % (0.3 ) Next 10.3 % 10.7 % (0.4 )
10.4 % 10.8 % (0.4 ) Others 12.5 % 13.3 % (0.8 ) 12.8 % 13.4 % (0.6
)
Total 36.2 % 37.2 %
(1.0 ) 36.7 % 37.8 %
(1.1 )
In the quarter, the increase of the total cigarette market was
mainly driven by favorable estimated trade inventory movements of
competitors' products. Excluding the impact of these inventory
movements, the total cigarette market declined by 0.7%.
Year-to-date, the total market declined by 2.2% or by 5.3%
excluding estimated trade inventory movements, mainly due to the
impact of tax-driven price increases in 2014 and 2015. The decrease
in PMI's cigarette shipment volume in the quarter was mainly due to
market share declines of PMI's low price brands, notably Next and
Quebec Classic, partially offset by share growth of premium Belmont
and super-low price Philip Morris. The decrease in PMI's cigarette
shipment volume year-to-date was mainly due to the same factors as
in the quarter, as well as a lower total market.
In Mexico, industry size, PMI cigarette shipment volume
and market share performance are shown in the table below.
Mexico Key Market
Data
Second-Quarter
Six Months
Year-to-Date
Change Change
2015
2014
% /
p.p.
2015
2014
% /
p.p.
Total Cigarette Market (billion units) 8.6 8.4 1.9 % 16.1
15.6 3.2 %
PMI Shipments (million units) 5,891 5,991
(1.7 )% 10,887 10,862 0.2 %
PMI Cigarette Market
Share Marlboro 47.5 % 49.3 % (1.8 ) 46.5 % 48.2 % (1.7 )
Delicados 10.7 % 11.5 % (0.8 ) 10.8 % 11.1 % (0.3 ) Benson &
Hedges 4.6 % 5.2 % (0.6 ) 4.6 % 5.2 % (0.6 ) Others 5.7 % 5.0 % 0.7
5.6 % 5.0 % 0.6
Total 68.5 %
71.0 % (2.5 ) 67.5 %
69.5 % (2.0 )
In the quarter, the increase of the total cigarette market was
unfavorably impacted by the timing of estimated trade inventory
movements compared to the second quarter of 2014. Excluding the
impact of these inventory movements, the total cigarette market
increased by 3.2%. Year-to-date, the total market increased by 3.2%
or by 1.3% excluding estimated trade inventory movements. The
decrease in PMI's cigarette shipment volume in the quarter was
mainly due to market share declines. PMI's cigarette shipment
volume year-to-date increased by 0.2%. The decline in PMI's market
share in the quarter and year-to-date was mainly due to Marlboro,
reflecting adult smoker down-trading and the timing of price
increases by PMI's principal competitor in the first quarter of
2015, partly offset by gains for certain low price local trademark
brands.
Philip Morris International Inc.
Profile
Philip Morris International Inc. (PMI) is the leading
international tobacco company, with six of the world's top 15
international brands, including Marlboro, the number one cigarette
brand worldwide. PMI's products are sold in more than 180 markets.
In 2014, the company held an estimated 15.6% share of the total
international cigarette market outside of the U.S., or 28.6%
excluding the People's Republic of China and the U.S. For more
information, see www.pmi.com.
Forward-Looking and Cautionary
Statements
This press release contains projections of future results and
other forward-looking statements. Achievement of projected 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: significant increases in
cigarette-related taxes; the imposition of discriminatory excise
tax structures; fluctuations in customer inventory levels due to
increases in product taxes and prices; increasing marketing and
regulatory restrictions, often with the goal of reducing or
preventing the use of tobacco products; health concerns relating to
the use of tobacco products and exposure to environmental tobacco
smoke; litigation related to tobacco use; intense competition; the
effects of global and individual country economic, regulatory and
political developments; changes in adult smoker behavior; lost
revenues as a result of counterfeiting, contraband and cross-border
purchases; governmental investigations; unfavorable currency
exchange rates and currency devaluations; adverse changes in
applicable corporate tax laws; adverse changes in the cost and
quality of tobacco and other agricultural products and raw
materials; and the integrity of its information systems. PMI's
future profitability may also be adversely affected should it be
unsuccessful in its attempts to produce products that have the
potential to reduce individual risk and population harm; 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.
PMI is further subject to other risks detailed from time to time
in its publicly filed documents, including the Form 10-Q for the
quarter ended March 31, 2015. 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.
Schedule 1 PHILIP MORRIS INTERNATIONAL
INC. and Subsidiaries Condensed Statements of Earnings
For the
Quarters Ended June 30, ($ in millions, except per share data)
(Unaudited)
2015 2014 %
Change Net revenues $ 18,763 $
21,051 (10.9 )% Cost of sales 2,378 2,696
(11.8 )% Excise taxes on products (1) 11,904 13,254
(10.2 )% Gross profit 4,481 5,101 (12.2 )% Marketing,
administration and research costs 1,568 1,716 Asset impairment and
exit costs — 489 Amortization of intangibles 21 22
Operating income (2) 2,892 2,874
0.6 % Interest expense, net 259 254
Earnings before income taxes 2,633 2,620 0.5 % Provision for
income taxes 743 752 (1.2 )% Equity (income)/loss in unconsolidated
subsidiaries, net (26 ) (27 ) Net earnings 1,916 1,895 1.1 %
Net earnings attributable to noncontrolling interests 29
44
Net earnings attributable to PMI $
1,887 $ 1,851 1.9
% Per share data: (3) Basic earnings per
share $ 1.21 $ 1.17
3.4 % Diluted earnings per share
$ 1.21 $ 1.17
3.4 %
(1) The segment detail of excise taxes on
products sold for the quarters ended June 30, 2015 and 2014 is
shown onSchedule 2.
(2) PMI's management evaluates segment
performance and allocates resources based on operating companies
income,which PMI defines as operating income, excluding general
corporate expenses and amortization of intangibles, plus
equity(income)/loss in unconsolidated subsidiaries, net. The
reconciliation from operating income to operating companies
incomeis as follows:
2015 2014 % Change
Operating Income $ 2,892 $ 2,874
0.6 %
Excluding:
- Amortization of Intangibles 21 22 - General corporate expenses
(included in marketing, administration and research costs above) 41
40 Plus: Equity (income)/loss in unconsolidated subsidiaries, net
(26 ) (27 )
Operating Companies Income $
2,980 $ 2,963 0.6
%
(3) Net earnings and weighted-average
shares used in the basic and diluted earnings per share
computations for thequarters ended June 30, 2015 and 2014 are shown
on Schedule 4, Footnote 1.
Schedule 2 PHILIP
MORRIS INTERNATIONAL INC. and Subsidiaries Selected Financial Data
by Business Segment
For the Quarters Ended June 30, ($ in
millions) (Unaudited)
Net Revenues excluding
Excise Taxes European Union EEMA
Asia
LatinAmerica&
Canada
Total 2015 Net Revenues (1) $ 6,336 $
4,994 $ 5,039 $ 2,394 $ 18,763 Excise
Taxes on Products (4,348 ) (3,075 ) (2,894 )
(1,587 ) (11,904 )
Net Revenues excluding Excise
Taxes 1,988 1,919 2,145 807
6,859 2014 Net Revenues $ 7,829 $ 5,674 $
5,097 $ 2,451 $ 21,051 Excise Taxes on Products (5,436 )
(3,391 ) (2,786 ) (1,641 ) (13,254 )
Net
Revenues excluding Excise Taxes 2,393 2,283
2,311 810 7,797 Variance
Currency (488 ) (464 ) (229 ) (112 ) (1,293 ) Acquisitions 4 1 — 3
8 Operations 79 99 63 106
347
Variance Total (405 )
(364 ) (166 ) (3 )
(938 ) Variance Total (%) (16.9 )% (15.9 )% (7.2 )%
(0.4 )% (12.0 )% Variance excluding Currency 83 100 63 109
355 Variance excluding Currency (%) 3.5 % 4.4 % 2.7 % 13.5 % 4.6 %
Variance excluding Currency & Acquisitions 79 99 63 106
347 Variance excluding Currency & Acquisitions (%) 3.3 % 4.3 %
2.7 % 13.1 % 4.5 % (1) 2015 Currency decreased
net revenues as follows: European Union $ (1,558 ) EEMA (1,311 )
Asia (487 ) Latin America & Canada (348 ) $ (3,704 )
Schedule 3
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Selected
Financial Data by Business Segment
For the Quarters Ended June
30, ($ in millions) (Unaudited)
Operating Companies Income
EuropeanUnion
EEMA Asia
LatinAmerica
&Canada
Total 2015 $ 977 $ 881 $ 797 $
325 $ 2,980 2014 711 1,087 900 265 2,963 % Change 37.4 %
(19.0 )% (11.4 )% 22.6 % 0.6 %
Reconciliation:
For the quarter ended June 30, 2014 $ 711
$ 1,087 $ 900 $ 265
$ 2,963 2014 Asset impairment and exit costs
488 — 1 — 489 2015 Asset impairment and exit costs — — — — —
Acquired businesses (2 ) (1 ) — 2 (1 ) Currency (279 ) (253 ) (97 )
(51 ) (680 ) Operations 59 48 (7 )
109 209
For the quarter ended June
30, 2015 $ 977 $
881 $ 797
$ 325 $
2,980 Schedule 4 PHILIP
MORRIS INTERNATIONAL INC. and Subsidiaries Diluted Earnings Per
Share
For the Quarters Ended June 30, ($ in millions, except
per share data) (Unaudited)
Diluted E.P.S.
2015 Diluted Earnings Per Share $ 1.21
(1)
2014 Diluted Earnings Per Share $ 1.17 (1) Change $ 0.04 % Change
3.4 %
Reconciliation:
2014 Diluted Earnings Per Share $ 1.17 (1)
Special
Items:
2014 Asset impairment and exit costs 0.24 2014 Tax items — 2015
Asset impairment and exit costs — 2015 Tax items — Currency
(0.33 ) Interest (0.02 ) Change in tax rate (0.01 ) Impact of lower
shares outstanding and share-based payments 0.02 Operations 0.14
2015 Diluted Earnings Per Share $
1.21 (1) (1) Basic and diluted EPS were
calculated using the following (in millions):
Q22015 Q22014 Net earnings
attributable to PMI $ 1,887 $ 1,851 Less distributed and
undistributed earnings attributable to share-based payment awards 6
9 Net earnings for basic and diluted EPS $
1,881 $ 1,842 Weighted-average
shares for basic and diluted EPS 1,549 1,571
Schedule 5 PHILIP MORRIS INTERNATIONAL
INC. and Subsidiaries Condensed Statements of Earnings
For the
Six Months Ended June 30, ($ in millions, except per share
data) (Unaudited)
2015 2014 %
Change Net revenues $ 36,115
$ 38,830 (7.0 )% Cost of sales
4,607 5,070 (9.1 )% Excise taxes on products (1) 22,640
24,116 (6.1 )% Gross profit 8,868 9,644 (8.0 )%
Marketing, administration and research costs 3,062 3,263 Asset
impairment and exit costs — 512 Amortization of intangibles 43
44
Operating income (2) 5,763
5,825 (1.1 )% Interest expense, net 534
522 Earnings before income taxes 5,229 5,303 (1.4 )%
Provision for income taxes 1,528 1,528 — % Equity (income)/loss in
unconsolidated subsidiaries, net (49 ) (36 ) Net earnings
3,750 3,811 (1.6 )% Net earnings attributable to noncontrolling
interests 68 85
Net earnings attributable
to PMI $ 3,682 $
3,726 (1.2 )% Per
share data: (3) Basic earnings per share $
2.37 $ 2.35
0.9 % Diluted earnings per share $
2.37 $ 2.35
0.9 %
(1) The segment detail of excise taxes on
products sold for the six months ended June 30, 2015 and 2014 is
shown onSchedule 6.
(2) PMI's management evaluates segment
performance and allocates resources based on operating companies
income,which PMI defines as operating income, excluding general
corporate expenses and amortization of intangibles, plus
equity(income)/loss in unconsolidated subsidiaries, net. The
reconciliation from operating income to operating companies
incomeis as follows:
2015 2014 % Change
Operating Income $ 5,763 $ 5,825
(1.1 )%
Excluding:
- Amortization of Intangibles 43 44 - General corporate expenses
(included in marketing, administration and research costs above) 82
80 Plus: Equity (income)/loss in unconsolidated subsidiaries, net
(49 ) (36 )
Operating Companies Income $
5,937 $ 5,985
(0.8 )%
(3) Net earnings and weighted-average
shares used in the basic and diluted earnings per share
computations for the sixmonths ended June 30, 2015 and 2014 are
shown on Schedule 8, Footnote 1.
Schedule 6
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Selected
Financial Data by Business Segment
For the Six Months Ended June
30, ($ in millions) (Unaudited)
Net Revenues
excluding Excise Taxes
EuropeanUnion
EEMA Asia
LatinAmerica&
Canada
Total 2015 Net Revenues (1) $ 12,276 $
9,423 $ 9,803 $ 4,613 $ 36,115 Excise Taxes on
Products (8,396 ) (5,661 ) (5,503 ) (3,080 )
(22,640 )
Net Revenues excluding Excise Taxes
3,880 3,762 4,300 1,533 13,475
2014 Net Revenues $ 14,448 $ 10,236 $ 9,572 $ 4,574 $
38,830 Excise Taxes on Products (10,042 ) (5,944 )
(5,079 ) (3,051 ) (24,116 )
Net Revenues excluding
Excise Taxes 4,406 4,292 4,493
1,523 14,714 Variance Currency (766 )
(909 ) (357 ) (200 ) (2,232 ) Acquisitions 11 1 — 4 16 Operations
229 378 164 206
977
Variance Total (526 )
(530 ) (193 ) 10 (1,239
) Variance Total (%) (11.9 )% (12.3 )% (4.3 )% 0.7 % (8.4 )%
Variance excluding Currency 240 379 164 210 993 Variance
excluding Currency (%) 5.4 % 8.8 % 3.7 % 13.8 % 6.7 %
Variance excluding Currency & Acquisitions 229 378 164 206 977
Variance excluding Currency & Acquisitions (%) 5.2 % 8.8 % 3.7
% 13.5 % 6.6 % (1) 2015 Currency decreased net
revenues as follows: European Union $ (2,448 ) EEMA (2,344 ) Asia
(717 ) Latin America & Canada (636 ) $ (6,145 )
Schedule 7 PHILIP MORRIS
INTERNATIONAL INC. and Subsidiaries Selected Financial Data by
Business Segment
For the Six Months Ended June 30, ($ in
millions) (Unaudited)
Operating Companies Income
EuropeanUnion
EEMA Asia
LatinAmerica
&Canada
Total 2015 $ 1,890 $ 1,761 $ 1,731 $
555 $ 5,937 2014 1,689 2,014 1,815 467 5,985 % Change 11.9 %
(12.6 )% (4.6 )% 18.8 % (0.8 )%
Reconciliation:
For the six months ended June 30, 2014 $ 1,689
$ 2,014 $ 1,815 $ 467
$ 5,985 2014 Asset impairment and exit costs
488 — 24 — 512 2015 Asset impairment and exit costs — — — — —
Acquired businesses (2 ) (1 ) — 3 — Currency (470 ) (524 )
(176 ) (95 ) (1,265 ) Operations 185 272
68 180 705
For the six
months ended June 30, 2015 $ 1,890
$ 1,761 $
1,731 $ 555
$ 5,937
Schedule 8 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Diluted Earnings Per Share
For the Six Months Ended June 30,
($ in millions, except per share data) (Unaudited)
Diluted E.P.S. 2015 Diluted Earnings Per Share
$ 2.37 (1) 2014 Diluted Earnings Per Share $ 2.35 (1) Change
$ 0.02 % Change 0.9 %
Reconciliation:
2014 Diluted Earnings Per Share $ 2.35 (1)
Special
Items:
2014 Asset impairment and exit costs 0.25 2014 Tax items — 2015
Asset impairment and exit costs — 2015 Tax items — Currency
(0.64 ) Interest (0.03 ) Change in tax rate (0.04 ) Impact of lower
shares outstanding and share-based payments 0.05 Operations 0.43
2015 Diluted Earnings Per Share $
2.37 (1) (1) Basic and diluted EPS were
calculated using the following (in millions):
YTD June2015
YTD June2014
Net earnings attributable to PMI $ 3,682 $ 3,726 Less
distributed and undistributed earnings attributable to share-based
payment awards 13 17 Net earnings for basic and
diluted EPS $ 3,669 $ 3,709
Weighted-average shares for basic and diluted EPS 1,549
1,577 Schedule 9 PHILIP MORRIS
INTERNATIONAL INC. and Subsidiaries
Condensed Balance Sheets
($ in millions, except ratios) (Unaudited)
June 30,
December 31, 2015 2014
Assets
Cash and cash equivalents $ 1,838 $ 1,682 All other
current assets 11,934 13,802 Property, plant and equipment, net
5,815 6,071 Goodwill 7,914 8,388 Other intangible assets, net 2,807
2,985 Investments in unconsolidated subsidiaries 1,020 1,083 Other
assets 1,385 1,176
Total assets $
32,713 $ 35,187
Liabilities and
Stockholders' (Deficit) Equity
Short-term borrowings $ 1,710 $ 1,208 Current portion of long-term
debt 2,926 1,318 All other current liabilities 10,750 12,586
Long-term debt 24,566 26,929 Deferred income taxes 1,799 1,549
Other long-term liabilities 2,760 2,800 Total
liabilities 44,511 46,390 Total PMI stockholders' deficit
(13,151 ) (12,629 ) Noncontrolling interests 1,353 1,426
Total stockholders' deficit (11,798 ) (11,203 )
Total
liabilities and stockholders' (deficit) equity $
32,713 $ 35,187
Total debt $ 29,202 $ 29,455 Total debt to Adjusted EBITDA 2.34
(1)
2.24 (1) Net debt to Adjusted EBITDA 2.19
(1)
2.12 (1)
(1) For the calculation of Total Debt to Adjusted EBITDA and Net
Debt to Adjusted EBITDA ratios, refer to Schedule 18.
Schedule 10 PHILIP MORRIS INTERNATIONAL
INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Adjustments for the Impact of Currency and Acquisitions
For the
Quarters Ended June 30, ($ in millions) (Unaudited)
2015 2014
% Change in Reported NetRevenues
excluding Excise Taxes
Reported Net Revenues
LessExciseTaxes
Reported Net Revenues excluding Excise
Taxes
LessCurrency
Reported Net Revenues excluding Excise
Taxes & Currency
LessAcquisi-tions
Reported Net Revenues excluding Excise
Taxes, Currency & Acquisitions
Reported Net Revenues
LessExciseTaxes
Reported Net Revenues excluding Excise
Taxes
Reported
Reported excluding Currency
Reported excluding Currency &
Acquisitions
$ 6,336 $ 4,348 $ 1,988 $ (488 ) $ 2,476 $ 4 $ 2,472
European Union $ 7,829 $ 5,436 $ 2,393 (16.9 )% 3.5 % 3.3 % 4,994
3,075 1,919 (464 ) 2,383 1 2,382 EEMA 5,674 3,391 2,283 (15.9 )%
4.4 % 4.3 % 5,039 2,894 2,145 (229 ) 2,374 — 2,374 Asia 5,097 2,786
2,311 (7.2 )% 2.7 % 2.7 % 2,394 1,587 807 (112 ) 919 3 916 Latin
America & Canada 2,451 1,641 810 (0.4 )% 13.5 % 13.1 %
$ 18,763 $ 11,904 $
6,859 $ (1,293 ) $ 8,152
$ 8 $ 8,144 PMI Total
$ 21,051 $ 13,254 $ 7,797
(12.0 )% 4.6 % 4.5 %
2015 2014
% Change in Reported
OperatingCompanies Income
Reported Operating Companies
Income
LessCurrency
Reported Operating Companies Income
excluding Currency
LessAcquisi-tions
Reported Operating Companies Income
excluding Currency & Acquisitions
Reported Operating Companies Income
Reported
Reported excluding Currency
Reported excluding Currency &
Acquisitions
$ 977 $ (279 ) $ 1,256 $ (2 ) $ 1,258 European Union $ 711
37.4 % 76.7 % 76.9 % 881 (253 ) 1,134 (1 ) 1,135 EEMA 1,087 (19.0
)% 4.3 % 4.4 % 797 (97 ) 894 — 894 Asia 900 (11.4 )% (0.7 )% (0.7
)% 325 (51 ) 376 2 374 Latin America & Canada 265 22.6 % 41.9 %
41.1 %
$
2,980 $ (680 ) $ 3,660
$ (1 ) $ 3,661 PMI Total
$ 2,963 0.6 % 23.5 %
23.6 %
Schedule 11
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of
Non-GAAP Measures Reconciliation of Reported Operating Companies
Income to Adjusted Operating Companies Income & Reconciliation
of Adjusted Operating Companies Income Margin, excluding Currency
and Acquisitions
For the Quarters Ended June 30, ($ in
millions) (Unaudited)
2015 2014
% Change in Adjusted
OperatingCompanies Income
Reported Operating Companies
Income
LessAsset Impairment & Exit
Costs
Adjusted Operating Companies
Income
LessCurrency
Adjusted Operating Companies Income
excluding Currency
LessAcquisi-tions
Adjusted Operating Companies Income
excluding Currency & Acquisitions
Reported Operating Companies
Income
LessAsset Impairment & Exit
Costs
Adjusted Operating Companies
Income
Adjusted
Adjusted excluding Currency Adjusted
excluding Currency & Acquisitions $ 977 $ — $ 977 $
(279 ) $ 1,256 $ (2 ) $ 1,258
EuropeanUnion
$ 711 $ (488 ) $ 1,199 (18.5 )% 4.8 % 4.9 % 881 — 881 (253 ) 1,134
(1 ) 1,135 EEMA 1,087 — 1,087 (19.0 )% 4.3 % 4.4 % 797 — 797 (97 )
894 — 894 Asia 900 (1 ) 901 (11.5 )% (0.8 )% (0.8 )% 325 — 325 (51
) 376 2 374
Latin America& Canada
265 — 265 22.6 % 41.9 % 41.1 %
$ 2,980
$ — $ 2,980
$ (680 ) $ 3,660 $
(1 ) $ 3,661
PMI Total
$ 2,963 $ (489 ) $
3,452 (13.7 )% 6.0 %
6.1 % 2015 2014
% Points Change
Adjusted Operating Companies Income
excluding Currency
Net Revenues excluding Excise Taxes
& Currency(1)
Adjusted Operating Companies Income
Margin excluding Currency
Adjusted Operating Companies Income
excluding Currency & Acquisitions
Net Revenues excluding Excise Taxes,
Currency & Acquisitions(1)
Adjusted Operating Companies Income
Margin excluding Currency & Acquisitions
Adjusted Operating Companies
Income
Net Revenues excluding Excise
Taxes(1)
Adjusted Operating Companies Income Margin
Adjusted Operating Companies Income Margin excluding
Currency Adjusted Operating Companies Income Margin
excluding Currency & Acquisitions $ 1,256 $ 2,476
50.7 % $ 1,258 $ 2,472 50.9 %
EuropeanUnion
$ 1,199 $ 2,393 50.1 % 0.6 0.8 1,134 2,383 47.6 % 1,135 2,382 47.6
% EEMA 1,087 2,283 47.6 % — — 894 2,374 37.7 % 894 2,374 37.7 %
Asia 901 2,311 39.0 % (1.3 ) (1.3 ) 376 919 40.9 % 374 916 40.8 %
Latin America& Canada
265 810 32.7 % 8.2 8.1
$ 3,660 $ 8,152
44.9 % $ 3,661 $
8,144 45.0 % PMI Total $
3,452 $ 7,797 44.3
% 0.6 0.7
(1) For the calculation of net revenues excluding excise taxes,
currency and acquisitions, refer to Schedule 10.
Schedule 12 PHILIP MORRIS INTERNATIONAL
INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and
Adjusted Diluted EPS, excluding Currency
For the Quarters Ended
June 30, (Unaudited)
2015 2014 %
Change Reported Diluted EPS $ 1.21
$ 1.17 3.4 % Adjustments: Asset
impairment and exit costs — 0.24 Tax items — —
Adjusted Diluted EPS $ 1.21 $
1.41 (14.2 )% Less: Currency impact
(0.33 )
Adjusted Diluted EPS, excluding
Currency $ 1.54 $ 1.41
9.2 %
Schedule 13
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of
Non-GAAP Measures Reconciliation of Reported Diluted EPS to
Reported Diluted EPS, excluding Currency
For the Quarters Ended
June 30, (Unaudited)
2015
2014 % Change Reported Diluted EPS
$ 1.21 $ 1.17 3.4 %
Less: Currency impact (0.33 )
Reported
Diluted EPS, excluding Currency $ 1.54
$ 1.17 31.6 %
Schedule 14 PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments
for the Impact of Currency and Acquisitions
For the Six Months
Ended June 30, ($ in millions) (Unaudited)
2015
2014
% Change in Reported NetRevenues
excluding Excise Taxes
Reported Net Revenues
LessExciseTaxes
Reported Net Revenues excluding Excise
Taxes
LessCurrency
Reported Net Revenues excluding Excise
Taxes & Currency
LessAcquisi-tions
Reported Net Revenues excluding Excise
Taxes, Currency & Acquisitions
Reported Net Revenues
LessExciseTaxes
Reported Net Revenues excluding Excise
Taxes
Reported
Reported excluding Currency Reported
excluding Currency & Acquisitions $ 12,276 $ 8,396 $ 3,880
$ (766 ) $ 4,646 $ 11 $ 4,635 European Union $ 14,448 $ 10,042 $
4,406 (11.9 )% 5.4 % 5.2 % 9,423 5,661 3,762 (909 ) 4,671 1 4,670
EEMA 10,236 5,944 4,292 (12.3 )% 8.8 % 8.8 % 9,803 5,503 4,300 (357
) 4,657 — 4,657 Asia 9,572 5,079 4,493 (4.3 )% 3.7 % 3.7 % 4,613
3,080 1,533 (200 ) 1,733 4 1,729 Latin America & Canada 4,574
3,051 1,523 0.7 % 13.8 % 13.5 %
$ 36,115
$ 22,640 $ 13,475
$ (2,232 ) $ 15,707
$ 16 $ 15,691 PMI
Total $ 38,830 $ 24,116
$ 14,714 (8.4 )%
6.7 % 6.6 % 2015
2014
% Change in Reported
OperatingCompanies Income
Reported Operating Companies Income
LessCurrency
Reported Operating Companies Income
excluding Currency
LessAcquisi-tions
Reported Operating Companies Income
excluding Currency & Acquisitions
Reported Operating Companies
Income
Reported
Reported excluding Currency
Reported excluding Currency & Acquisitions
$ 1,890 $ (470 ) $ 2,360 $ (2 ) $ 2,362 European Union $ 1,689 11.9
% 39.7 % 39.8 % 1,761 (524 ) 2,285 (1 ) 2,286 EEMA 2,014 (12.6 )%
13.5 % 13.5 % 1,731 (176 ) 1,907 — 1,907 Asia 1,815 (4.6 )% 5.1 %
5.1 % 555 (95 ) 650 3 647 Latin America & Canada 467 18.8 %
39.2 % 38.5 %
$ 5,937 $ (1,265 )
$ 7,202 $ — $
7,202 PMI Total $ 5,985
(0.8 )% 20.3 % 20.3 %
Schedule 15 PHILIP MORRIS
INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP
Measures Reconciliation of Reported Operating Companies Income to
Adjusted Operating Companies Income & Reconciliation of
Adjusted Operating Companies Income Margin, excluding Currency and
Acquisitions
For the Six Months Ended June 30, ($ in
millions) (Unaudited)
2015 2014
% Change in Adjusted
OperatingCompanies Income
Reported Operating Companies Income
LessAsset Impairment & Exit
Costs
Adjusted Operating Companies
Income
LessCurrency
Adjusted Operating Companies Income excluding Currency
LessAcquisi-tions
Adjusted Operating Companies Income excluding Currency &
Acquisitions
Reported Operating Companies
Income
LessAsset Impairment & Exit
Costs
Adjusted Operating Companies Income
Adjusted
Adjusted excluding Currency Adjusted
excluding Currency & Acquisitions $ 1,890 $ — $
1,890 $ (470 ) $ 2,360 $ (2 ) $ 2,362 European Union $ 1,689 $ (488
) $ 2,177 (13.2 )% 8.4 % 8.5 % 1,761 — 1,761 (524 ) 2,285 (1 )
2,286 EEMA 2,014 — 2,014 (12.6 )% 13.5 % 13.5 % 1,731 — 1,731 (176
) 1,907 — 1,907 Asia 1,815 (24 ) 1,839 (5.9 )% 3.7 % 3.7 % 555 —
555 (95 ) 650 3 647
Latin America& Canada
467 — 467 18.8 % 39.2 % 38.5 %
$ 5,937
$ — $ 5,937
$ (1,265 ) $ 7,202
$ — $ 7,202 PMI
Total $ 5,985 $ (512
) $ 6,497 (8.6 )%
10.9 % 10.9 % 2015
2014 % Points Change Adjusted
Operating Companies Income excluding Currency
Net Revenues excluding Excise Taxes
& Currency(1)
Adjusted Operating Companies Income
Margin excluding Currency
Adjusted Operating Companies Income
excluding Currency & Acquisitions
Net Revenues excluding Excise Taxes,
Currency & Acquisitions(1)
Adjusted Operating Companies Income
Margin excluding Currency & Acquisitions
Adjusted Operating Companies
Income
Net Revenues excluding Excise
Taxes(1)
Adjusted Operating Companies Income Margin
Adjusted Operating Companies Income Margin excluding
Currency Adjusted Operating Companies Income Margin
excluding Currency & Acquisitions $ 2,360 $ 4,646
50.8 % $ 2,362 $ 4,635 51.0 % European Union $ 2,177 $ 4,406 49.4 %
1.4 1.6 2,285 4,671 48.9 % 2,286 4,670 49.0 % EEMA 2,014 4,292 46.9
% 2.0 2.1 1,907 4,657 40.9 % 1,907 4,657 40.9 % Asia 1,839 4,493
40.9 % — — 650 1,733 37.5 % 647 1,729 37.4 %
Latin America& Canada
467 1,523 30.7 % 6.8 6.7
$ 7,202 $ 15,707
45.9 % $ 7,202 $
15,691 45.9 % PMI Total $
6,497 $ 14,714 44.2
% 1.7 1.7
(1) For the calculation of net revenues excluding excise taxes,
currency and acquisitions, refer to Schedule 14.
Schedule 16 PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation
of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted
Diluted EPS, excluding Currency
For the Six Months Ended June
30, (Unaudited)
2015 2014 %
Change Reported Diluted EPS $ 2.37
$ 2.35 0.9 % Adjustments: Asset
impairment and exit costs — 0.25 Tax items — —
Adjusted Diluted EPS $ 2.37 $
2.60 (8.8 )% Less: Currency impact
(0.64 )
Adjusted Diluted EPS, excluding
Currency $ 3.01 $ 2.60
15.8 %
Schedule 17
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of
Non-GAAP Measures Reconciliation of Reported Diluted EPS to
Reported Diluted EPS, excluding Currency
For the Six Months
Ended June 30, (Unaudited)
2015 2014 % Change Reported Diluted
EPS $ 2.37 $ 2.35 0.9
% Less: Currency impact (0.64 )
Reported Diluted EPS, excluding Currency $
3.01 $ 2.35 28.1 %
Schedule 18 PHILIP MORRIS
INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP
Measures Calculation of Total Debt to Adjusted EBITDA and Net Debt
to Adjusted EBITDA Ratios ($ in millions, except ratios)
(Unaudited)
For the Year Ended For the Year
Ended June 30, December 31, 2015
2014
July ~December
January ~ June 12 months 2014 2015 rolling Earnings
before income taxes $ 5,347 $ 5,229 $ 10,576 $ 10,650 Interest
expense, net 530 534 1,064 1,052 Depreciation and amortization 462
377 839 889 Extraordinary, unusual or non-recurring expenses, net
(1) 23 — 23 535
Adjusted EBITDA $ 6,362
$ 6,140 $ 12,502 $ 13,126
June 30, December 31, 2015
2014 Short-term borrowings $ 1,710 $ 1,208 Current
portion of long-term debt 2,926 1,318 Long-term debt 24,566 26,929
Total Debt $ 29,202 $ 29,455
Less: Cash and cash equivalents 1,838 1,682
Net Debt
$ 27,364 $ 27,773
Ratios
Total Debt to Adjusted EBITDA 2.34 2.24 Net
Debt to Adjusted EBITDA 2.19 2.12
(1) Asset Impairment and Exit Costs at Operating Income
level.
Schedule 19 PHILIP
MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of
Non-GAAP Measures Reconciliation of Operating Cash Flow to Free
Cash Flow and Free Cash Flow, excluding Currency Reconciliation of
Operating Cash Flow to Operating Cash Flow, excluding Currency
For the Quarters and Six Months Ended June 30, ($ in
millions) (Unaudited)
For the Quarters Ended For
the Six Months Ended June 30, June 30,
2015 2014 % Change 2015 2014
% Change Net cash provided by operating
activities(a) $ 3,675 $ 2,705
35.9 % $ 3,300 $ 3,420
(3.5 )% Less: Capital expenditures 210
252 413 508
Free cash flow
$ 3,465 $ 2,453 41.3 %
$ 2,887 $ 2,912 (0.9 )%
Less: Currency impact (598 ) (1,554 )
Free cash flow, excluding currency $ 4,063
$ 2,453 65.6 % $
4,441 $ 2,912 52.5
%
For the
Quarters Ended For the Six Months Ended June 30,
June 30, 2015 2014 % Change 2015
2014 % Change Net cash provided by
operating activities(a) $ 3,675 $
2,705 35.9 % $ 3,300 $
3,420 (3.5 )% Less: Currency impact
(639 ) (1,625 )
Net cash provided by operating
activities,excluding currency $ 4,314
$ 2,705 59.5 % $
4,925 $ 3,420 44.0
% (a) Operating cash flow.
Schedule 20
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures Reconciliation of Reported
Diluted EPS to Adjusted Diluted EPS
For the Year Ended December
31, (Unaudited)
2014 Reported
Diluted EPS $ 4.76
Adjustments: Asset impairment and exit costs 0.26 Tax items —
Adjusted Diluted EPS $
5.02
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150716005441/en/
Philip Morris International Inc.Investor Relations:New York: +1
(917) 663 2233Lausanne: +41 (0)58 242 4666orMedia:Lausanne: +41
(0)58 242 4500
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