Philip Morris International Inc · NYSE:PM
Philip Morris International — Q2 2025 Earnings Presentation
30 slides from Philip Morris International's earnings presentation, Jul 22, 2025
Slide 1: 2025 First-Quarter Results
Championing a Smoke-Free World 2025 First-Quarter Results April 23, 2025
Slide 2: Introduction
Introduction • A glossary of terms as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures for non-GAAP financial measures cited in this presentation are available in Exhibit 99.2 to the company's Form 8-K dated April 23, 2025 and on our Inve
Slide 3: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements • This presentation contains projections of future results and goals and other forward-looking statements, including statements regarding expected financial or operational performance; capital allocation plans; investment strategies; market expectations; reg
Slide 4: Excellent Q1 Marks Strong Start to 2025
Excellent Q1 Marks Strong Start to 2025 • Rapid & increasingly profitable volume growth: ⎼ Continued dynamic progress of SFPs: IQOS, ZYN & VEEV ⎼ Resilient combustible volumes, robust pricing • Double-digit organic top and bottom-line growth: ⎼ Significant adj. OI margin expansion to >40% ⎼ +13% USD
Slide 5: Q1: Impressive Start to the Year
Q1: Impressive Start to the Year Q1’25 vs. PY Q1’25 Adj. incl. Organic Curr. & Acq/Div Shipment Volume +3.9% 188bn Net Revenues +10.2% +5.8% $9.3bn Adj. Operating Income +16.0% +12.8% $3.8bn Adj. Diluted EPS +17.3% +12.7% $1.69 (Excl. Currency) (Incl. Currency) Note: Organic growth rates reflect cur
Slide 6: Increasingly Profitable Smoke-Free Transformation
Increasingly Profitable Smoke-Free Transformation Q1’25 Organic Growth vs. PY Total PMI Smoke-Free(a) Combustibles Net Net Net Revenues 10.2% Revenues 20.4% Revenues 3.8% Gross +340bps Gross Gross Profit 16.0% Gross Profit 33.1% Profit 5.3% Margin Operating Income 16.0% +200bps +670bps +90bps OI Mar
Slide 7: Continuous Volume Growth Led By Smoke-Free
Continuous Volume Growth Led By Smoke-Free Shipments (billion units) vs. PY Total 180.8 187.8 3.9% 12% HTUs Smoke-Free 37.6 43.0 14.4% 27% Oral SFPs 107% E-Vapor Cigarettes 143.2 144.8 1.1% Q1’24 Q1’25 7 Note: Total Smoke-Free volumes represent HTUs, Oral SFPs and VEEV volumes in equivalent units. T
Slide 8: SFP Multicategory Expansion Supporting Strong Performance
SFP Multicategory Expansion Supporting Strong Performance 16 30 Markets with Markets with 3 PMI SFP Categories 2 PMI SFP Categories 49 Markets with 1 PMI SFP Category 8 Note: Markets with 2 or more PMI SFP categories refer to HTUs, nicotine pouches and e-vapor. Source: PMI Financials or estimates.
Slide 9: Top-Line Growth Powered by Volumes, Pricing & Category Mix
Top-Line Growth Powered by Volumes, Pricing & Category Mix +3.1pp (2.7)pp 10.2% CC Geographic Smoke-Free Mix & Other & U.S. Mix (4.4)pp Impact +6.0pp 5.8% (1.8)pp +3.7pp Currency & 3.9% Indonesia CC Acq/Div business model Oral SFP Pricing change (Combustibles & Smoke-Free) Q1'25 Organic Q1'25 Net Sh
Slide 10: Excellent Gross Margin Expansion
Excellent Gross Margin Expansion Q1’25 Adjusted Gross Profit Margin flat 67.2% +0.2pp 67.4% Combustibles Currency & Acq/Div +2.3pp (0.8)pp +1.8pp 63.8% Costs, Productivities Smoke-Free Pricing & Other (Combustibles +1.1pp & Smoke-Free) Indonesia CC +340bps +360bps business model change Q1'24 Q1’25 Q
Slide 11: Strong & Sustainable Global IQOS Momentum
Strong & Sustainable Global IQOS Momentum HTU Adjusted IMS Growth (Vs. Previous Year) +10-12% +9.4% Q1'25 Est. FY'25 11 Source: PMI Financials or estimates
Slide 12: Europe: Strong Multicategory Growth
Europe: Strong Multicategory Growth Europe SFP Shipments 13.8 (IQOS, ZYN & VEEV only, equivalent bn units) HTU Adj. IMS(b) 13.5 (in billion units) 13.2 12.9 12.6 vs. PY HTU Adj. IMS Total 13.9 17.5% +7.4% Q1’25 vs. PY ZYN(a) 0.3 20.2% VEEV 0.5 112% HTU Adj. SoM 11.4% 10.6% 10.2% 9.8% 9.5% IQOS HTUs
Slide 13: Excellent Progress Continues in European Key Cities
Excellent Progress Continues in European Key Cities PMI HTU Offtake Share (Q1’25) Change vs. PY +0.5pp +2.8pp +1.7pp +1.5pp +1.3pp +1.2pp +2.6pp +2.0pp +5.3pp +0.6pp flat (0.3)pp +2.6pp +0.8pp +2.9pp +2.2pp 41.9% 34.4% 31.0% 28.4% 28.6% 22.2% 22.8% 19.2% 19.9% 20.4% 13.2% 9.6% 9.9% 10.5% 6.9% 8.6% S
Slide 14: Japan: Another Quarter of Impressive IQOS Performance
Japan: Another Quarter of Impressive IQOS Performance Mar’25 Offtake HnB Category Share(b) 11.2 11.5 10.9 Sapporo 10.2 10.5 50.4% Adj. IMS National Adj. IMS(a) +9.3% (in billion units) Q1’25 vs. PY 47.8% +3.4pp vs. PY 32.2% 29.9% 30.6% 29.2% 29.4% HTU Nagoya Adj. SoM Sagamihara 50.5% 50.5% 13 cities
Slide 15: Strong Key City Growth Across Global Markets
Strong Key City Growth Across Global Markets PMI HTU Offtake Shares (Q1’25) Change vs. PY +0.6pp +0.3pp +0.5pp +0.1pp +1.4pp +1.6pp +0.4pp +2.0pp (1.5)pp +1.7pp +1.4pp +3.8pp +3.9pp +1.2pp +2.7pp 20.2% 21.0% 17.7% 18.1% 13.3% 14.1% 7.5% 5.0% 5.0% 5.7% 3.9% 4.1% 4.6% 2.7% 3.1% Manila(a) Toronto Tunis
Slide 16: Significant ZYN Growth, Robust Demand & Increased Supply
Significant ZYN Growth, Robust Demand & Increased Supply ZYN U.S. Shipment Volumes • Demand strong, production (million cans) increase earlier than expected: Nielsen Retail Nielsen Retail MSA Value Share(a) Volume Share(a) Volume Share(b) ⎼ Partial pull-forward of distributor 70.5% 61.5% 65.6% 202 r
Slide 17: International ZYN Expansion With Very Strong Growth
International ZYN Expansion With Very Strong Growth International Nicotine Pouch Shipment Volumes (million cans) 38 Global Markets(a) 21.7 14.2 +53% +182% vs. PY Excl. Nordics Q1'24 Q1'25 17 (a) Markets where PMI commercializes nicotine pouches, including U.S. Source: PMI Financials or estimates
Slide 18: VEEV Momentum Accelerating with >2x Volume Growth
VEEV Momentum Accelerating with >2x Volume Growth VEEV Volumes (shipments in million equivalent units) 632 463 499 384 305 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 18 Source: PMI Financials or estimates
Slide 19: Combustibles: Strong Pricing & Efficiencies Drive Profitability
Combustibles: Strong Pricing & Efficiencies Drive Profitability Combustible Pricing Combustible Gross Profit (% organic growth vs. PY)(a) (% organic growth vs. PY) 8.9 8.7 8.3 6.8 5.3 5.0 2.7 0.5 1.9 0.3 2021 2022 2023 2024 Q1'25 2021 2022 2023 2024 Q1'25 19 (a) Pricing variance is based on adjusted
Slide 20: Excellent 2025 Expected Despite Macro Uncertainty
Excellent 2025 Expected Despite Macro Uncertainty 2025 Outlook • Raising U.S. ZYN volume forecast Total Shipments(a) Up to 2% • Reiterate strong currency-neutral growth outlook provided in SFP Shipments(b) 12-14% February HTU Adj. IMS 10-12% • Raising adjusted diluted EPS U.S. ZYN Shipments (cans) 8
Slide 21: Delivering Best-in-Class CPG Growth
Delivering Best-in-Class CPG Growth 2024-26 CAGR FY’24 2025 Forecast Targets Organic Organic Organic Shipment Volume +2.9% Up to 2% Positive (Variance vs. PY) Net Revenues +9.8% +6-8% +6-8% (Variance vs. PY) Operating Income +14.9% +10.5-12.5% +8-10% (Variance vs. PY) Adj. Diluted EPS +15.6% +10.5-1
Slide 22: Integrated Report 2024
Integrated Report 2024 Full Report Available Here 22
Slide 23: On Track for Very Strong 2025
On Track for Very Strong 2025 • Excellent start to the year, well-positioned to navigate external volatility • Powerful combination of underlying momentum and proactive steps supports best-in-class growth profile: ⎼ Structural smoke-free top-line growth with superior economics ⎼ Investing for growth
Slide 24: 2025 First-Quarter Results Questions & Answers
Championing a Smoke-Free World 2025 First-Quarter Results Questions & Answers Have you downloaded the PMI Investor Relations App? iOS Download Android Download The free IR App is available to download at the Apple App Store for iOS devices and at Google Play for Android mobile devices Or go to: www.
Slide 25: 2025 First-Quarter Results
Championing a Smoke-Free World 2025 First-Quarter Results April 23, 2025
Slide 26: Appendix
Championing a Smoke-Free World Appendix 26
Slide 27: 2025: EPS Guidance
2025: EPS Guidance ($/share) Full-Year 2025 Forecast 2024 Growth Reported Diluted EPS $7.01 – $7.14 $4.52 Adjustments: - Restructuring charges - 0.10 - Impairment of other intangibles - 0.01 - Amortization of intangibles(a) 0.50 0.40 - Loss on sale of Vectura Group - 0.13 - Egypt sales tax charge -
Slide 28: Select European Markets: PMI HTU Adjusted Share of Market
Select European Markets: PMI HTU Adjusted Share of Market Change Change Change Q1’25 vs. PY Q1’25 vs. PY Q1’25 vs. PY Slovak Austria 9.5% +0.8pp Italy 18.4% +0.7pp Republic 15.8% (1.4)pp Czech Republic 16.2 +0.3 Lithuania 29.5 +0.1 Slovenia 16.9 +1.8 Germany 7.7 +1.4 Poland 9.7 +0.7 Spain 3.3 +0.6 G
Slide 29: 2025 First-Quarter Results
Championing a Smoke-Free World 2025 First-Quarter Results April 23, 2025
Slide 30: Slide 30
Philip Morris International — Q2 2025 Earnings Presentation on 6ix