Philip Morris International Inc · NYSE:PM
Philip Morris International — Q1 2023 Earnings Presentation
15 slides from Philip Morris International's earnings presentation, Apr 20, 2023
Slide 1: Delivering a Smoke-Free Future: 2023 First-Quarter Results
Delivering a Smoke-Free Future 2023 First-Quarter Results April 20, 2023 Introduction • A glossary of terms, including the definition for smoke-free products(a) as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures for non-GAAP financial me
Slide 2: 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 business plans and strategies. Achievement of future results is subject to risks, uncertainties and inaccurate assumptio
Slide 3: Q1, 2023: Outperforming Expectations
Q1, 2023: Outperforming Expectations +14% Net Revenues Q1’23 Swedish Match (Organic variance vs. PY) +3.2% Net Revenue Growth excl. Currency Net Revenue per Unit(a) +4.4% (Organic variance vs. PY) Adj. Diluted EPS (4.4)% (Currency neutral variance vs. PY) Adj. Diluted EPS $1.38 (a) Reflects total PM
Slide 4: Peak Gross Margin Headwinds As Expected, Fundamentals Intact
Peak Gross Margin Headwinds As Expected, Fundamentals Intact 66.7% (0.6)pp COGS Inflation, (0.6)pp Combustible & HTU ILUMA PVM, Productivities Transition and (1.8)pp 63.7% / Other Supply Chain Disruption Geog. Mix of (0.7)pp 63.0% Inventory Currency & Movement, Acquisitions Phasing Q1, 2022 Q1, 2023
Slide 5: 2023 Outlook: Confident in Strong Full-Year Delivery
2023 Outlook: Confident in Strong Full-Year Delivery • Continue to expect strong 2023: ⎼ Q1 delivery supports visibility Full Year Outlook ⎼ Adjusted diluted EPS forecast of $6.10-$6.22 incl. unfavorable currency impact of 30 cents HTU Shipment Volumes 125-130bn • No contribution assumed from German
Slide 6: Modest Total Shipment Decline, Strong HTU Offtake Growth
Modest Total Shipment Decline, Strong HTU Offtake Growth (billion units, unless otherwise stated) Change vs. PY 158.1 Oral Nicotine(a) 173.3 +9.7% (in million cans) 173.1 Total Cig. & HTU 171.1 (1.1)% 24.8 ~16% HTUs 27.4 +10.4% HTU Adj. IMS Growth 148.2 Cigarettes 143.7 (3.1)% Q1, 2022 Q1, 2023 (a)
Slide 7: Continued Robust IQOS User Growth
Continued Robust IQOS User Growth (in millions) Total IQOS Users(a) 25.8 24.9 23.7 23.7 22.7 21.7 20.7 Estimated users who have switched to IQOS 71% 71% 72% 70% 71% 71% 72% and stopped smoking(a) Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 (a) See Glossary for definition 13 Source: PMI Financials or estimat
Slide 8: Europe Region: Strong Underlying HTU Growth
Europe Region: Strong Underlying HTU Growth 11.1 10.6 10.1 9.5 8.9 Adj. IMS(a) HTU Adjusted SoM(b) 9.2% (in billion units) 8.3% 7.5% 7.4% 7.2% Q1 Q2 Q3 Q4 Q1 2022 2023 (a) Excluding the impact of estimated distributor and wholesaler inventory movements, based on a four-quarter moving average (b) Exc
Slide 9: Japan: ILUMA Momentum Continues
Japan: ILUMA Momentum Continues 9.0 PMI HTU Offtake Shares(c) 8.7 8.4 Tokyo 32.4% 8.2 28.4% 8.0 Adj. IMS(a) 26.2% (in billion units) HTU Adjusted SoM(b) +4.0pp 24.5% Sendai 30.8% 23.6% 27.3% 22.8% 22.9% +3.5pp 28.9% Fukuoka 24.7% Q1 Q2 Q3 Q4 Q1 2022 2023 +4.2pp (a) Excluding the impact of estimated
Slide 10: Strong Swedish Match Results Led by ZYN
Strong Swedish Match Results Led by ZYN • Excellent Q1 constant currency net revenue growth of +14% for Swedish Match business • Outstanding U.S. ZYN performance • Good performance for U.S. moist snuff, Scandinavia volume decline post excise tax increase • Robust cigars performance • Strong progress
Slide 11: U.S. ZYN Growth Driven by Increasing Distribution & Velocities
U.S. ZYN Growth Driven by Increasing Distribution & Velocities Store Count(a) Velocities(b) (in Thousands) (Cans per Store per Week) 141 36.3 +21% +13% 138 Vs. Q1’22 34.6 Vs. Q1’22 134 33.7 130 31.6 125 120 29.9 28.5 Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 2021 2022 2023 (a) Estimated num
Slide 12: Sustainability: Measurable Progress Made Towards Our Purpose
Sustainability: Measurable Progress Made Towards Our Purpose 2022 Integrated Report ESG KPI Protocol TCFD Report (April 5, 2023) (April 5, 2023) (April 19, 2023) 23 On Track for Strong 2023 Performance • Better-than-expected Q1 results • Margin headwinds to progressively ease through the year • On t
Slide 13: Questions & Answers
Delivering a Smoke-Free Future 2023 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 14: Appendix: 2023 EPS Guidance
Appendix 27 2023: EPS Guidance ($/share) Full-Year 2023 Forecast 2022 Growth Reported Diluted EPS $5.88 – $6.00 $5.81 Adjustments: - Asset impairment and exit costs 0.06 – - Amortization and impairments of intangibles 0.16 0.15 - Termination of distribution arrangement in the Middle East 0.04 – - Ch
Slide 15: Delivering a Smoke-Free Future: 2023 First-Quarter Results
Delivering a Smoke-Free Future 2023 First-Quarter Results April 20, 2023
Philip Morris International — Q1 2023 Earnings Presentation on 6ix