Philip Morris International Inc · NYSE:PM
Philip Morris International — Q3 2024 Earnings Presentation
15 slides from Philip Morris International's earnings presentation, Oct 22, 2024
Slide 1: 2024 Third-Quarter Results
Championing a Smoke-Free World 2024 Third-Quarter Results October 22, 2024 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
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 expected financial or operational performance; capital allocation plans; investment strategies; market expectations; reg
Slide 3: Continued Strong Growth Across Key Metrics
Continued Strong Growth Across Key Metrics Q3’24 YTD Sept’24 Adj. incl. Adj. incl. Organic Curr. & Acq. Organic Curr. & Acq. Shipment Volume +2.9% +3.1% (Variance vs. PY) Net Revenues +11.6% +8.4% +10.7% +7.5% (Variance vs. PY) Operating Income +13.8% +11.2% +15.8% +8.6% (Variance vs. PY) Curr. Neut
Slide 4: On Track to Deliver Four Consecutive Years of Volume Growth
On Track to Deliver Four Consecutive Years of Volume Growth (shipments in bn units; change vs. PY) Q3’24 YTD’24 Shipments Adj. IMS Shipments Adj. IMS Total 203.0 +2.9% +3.0% 580.9 +3.1% +2.6% Oral SFP(a) 4.4 +22.2% +21.2% 12.8 +25.5% +26.3% +15.5% +13.9% HTUs 35.3 +8.9% +14.8% 104.0 +13.9% +12.6% Ci
Slide 5: Expanding OI Margin Organically and in USD
Expanding OI Margin Organically and in USD Q3’24 Adjusted OI Margin +0.2pp 41.9% +0.1pp 41.7% Currency & SG&A Acquisitions 40.8% +0.8pp Gross Margin Q3'23 Q3’24 Q3'24 (excl. Curr. & Acq.) 9 Note: Total may not foot due to rounding. Source: PMI Financials or estimates Strong Reacceleration in IQOS Mo
Slide 6: Europe: Underlying Momentum Driving Rapid IQOS Growth
Europe: Underlying Momentum Driving Rapid IQOS Growth 12.9 13.2 12.4 12.6 12.0 11.6 Adj. IMS Adj. IMS(a) 11.1 +11% (in billion units) Q3’24 vs. PY PMI 85% 84% 85% 84% Adj. Category Share(b) 10.2% 9.7% 9.8% 9.5% 9.2% 9.0% 8.7% HTU Adj. SoM Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2024 (a) Based on a four-quarter mo
Slide 7: Japan: Continued Strong IQOS Performance
Japan: Continued Strong IQOS Performance Japan HTU Offtake Share(b) 10.9 10.5 10.2 Tokyo 9.9 9.6 Adj. IMS 9.3 Adj. IMS(a) 9.0 +14% 33.3% 35.9% Q3’24 vs. PY (in billion units) +2.6pp PMI 71% 70% 70% 70% Sendai Adj. Category Share(c) 29.2% 29.4% 29.8% 33.6% 30.5% 27.5% +3.1pp 26.2% 26.3% 26.6% Fukuoka
Slide 8: Very Good Key City Growth Across Global Markets
Very Good Key City Growth Across Global Markets PMI HTU Offtake Shares (Q3’24) Change vs. PY +0.5pp +1.2pp +1.1pp +4.1pp +0.5pp +0.7pp +0.8pp +1.8pp +0.6pp +1.2pp +2.3pp +2.0pp +3.4pp +2.7pp 16.3% 14.7% 12.4% 12.7% 13.0% 9.5% 4.3% 4.3% 4.3% 5.1% 3.7% 4.0% 4.1% 2.4% Toronto Mexico City Manila Riyadh
Slide 9: Driving Opportunities Across Smoke-Free Categories
Driving Opportunities Across Smoke-Free Categories • ZYN international expansion continues, now in 30 markets • VEEV delivering encouraging growth and financial performance • IQOS 3 “Be The First” campaign underway for U.S. pilots 17 Source: PMI Financials or estimates Combustibles: Strong Pricing &
Slide 10: Canada: Steps Towards Resolution of CCAA Process
Canada: Steps Towards Resolution of CCAA Process • PMI deconsolidated Canadian affiliate RBH in 2019 on entering CCAA process • Court-appointed mediator and monitor proposed plan to resolve tobacco product- related claims and litigation in Canada dating back decades: ⎼ Proposal for CAD32.5bn ($23.5b
Slide 11: Raising 2024 Growth Outlook on Strong Fundamentals
Raising 2024 Growth Outlook on Strong Fundamentals • Very Strong YTD performance FY 2024 Forecast • Further raising volume outlook Previous Updated Total Shipment Volumes(a) 1-2% 2-3% HTU Adj. IMS Growth ~13% ~13% HTU Shipment Volumes ~140bn ~140bn U.S. ZYN Shipment Volume (cans) 560-580m 570-580m (
Slide 12: Questions & Answers
Superior Growth, Sustainable Growth Drivers • Powerful combination of underlying momentum and proactive steps supports strong growth profile: ⎼ Raising ‘24 growth outlook with accelerated top-line and margin expansion ⎼ Focused on delivering USD performance, mitigating currency headwinds • Smoke-fre
Slide 13: Appendix
Championing a Smoke-Free World 2024 Third-Quarter Results October 22, 2024 Championing a Smoke-Free World Appendix 26
Slide 14: Estimated Currency Variance on 2024 EPS
Estimated Currency Variance on 2024 EPS ($/share) Q1’24 Q2’24 Q3’24 Q4’24 FY’24 Total PMI Currency Variance vs. PY(a) $(0.20) $(0.18) $(0.06) +$0.04 $(0.40) (a) At prevailing exchange rates 27 Source: PMI Financials or estimates 2024: EPS Guidance Full-Year 2024 ($/share) Forecast 2023 Growth Report
Slide 15: Select European Markets: PMI HTU Adjusted Share of Market
Select European Markets: PMI HTU Adjusted Share of Market YTD Change YTD Change YTD Change Sept’24 vs. PY Sept’24 vs. PY Sept’24 vs. PY Austria 8.2% +1.3pp Hungary 31.9% +3.7pp Romania 8.3% +0.7pp Slovak Croatia 9.7 +1.4 Italy 17.0 +0.4 Republic 16.8 +0.8 Czech Republic 14.8 - Lithuania 27.8 - Slove
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