Philip Morris International Inc · NYSE:PM
Philip Morris International — Q2 2024 Earnings Presentation
15 slides from Philip Morris International's earnings presentation, Jul 23, 2024
Slide 1: 2024 Second-Quarter Results
Championing a Smoke-Free World 2024 Second-Quarter Results July 23, 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 Ex
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; div
Slide 3: Impressive Results Across All Key Metrics
Impressive Results Across All Key Metrics Q2’24 H1’24 Adj. incl. Adj. incl. Organic Curr. & Acq. Organic Curr. & Acq. Shipment Volume +2.8% +3.2% (Variance vs. PY) Net Revenues +9.6% +5.6% +10.2% +7.0% (Variance vs. PY) Operating Income +12.5% +3.5% +17.0% +7.1% (Variance vs. PY) Curr. Neutral Curr.
Slide 4: Accelerated Smoke-Free Growth, Combustible Margin Recovery
Accelerated Smoke-Free Growth, Combustible Margin Recovery Q2’24 Organic Variance vs. PY Total PMI Smoke-Free(a) Combustibles Net Net Net Revenues 9.6% Revenues 18.3% Revenues 4.8% Gross Gross Gross Profit 11.5% Profit 22.2% Profit 5.5% Operating Income 12.5% +220bps +50 bps Smoke-Free Combustible G
Slide 5: Best-in-Class Volumes, Pricing & SFP Mix Driving Growth
Best-in-Class Volumes, Pricing & SFP Mix Driving Growth (1.6)pp +10.2% +2.5pp Geographic Mix Smoke-Free & Other (3.2)pp Mix Impact +7.0% +6.0pp Currency +2.0pp +3.2% Oral SFP Pricing (Combustibles & Smoke-Free(a)) H1'24 Organic H1'24 Adj. Organic Shipment Net Revenue Net Revenue Volume Growth Growth
Slide 6: Over 36m Users of PMI Smoke-Free Products
Over 36m Users of PMI Smoke-Free Products Total Smoke-Free Product Users(a) (in millions) 36.5 Total Users(b) 90 33.3 0.8 E-Vapor markets PMI SFPs 0.5 5.2 Oral SFP available 4.2 27.5 25.1 23.7 20.6 21.7 28.9 30.8 IQOS 27.5 23.7 25.1 20.6 21.7 Estimated users who have switched to IQOS 71% 71% 71% 71%
Slide 7: Impressive Progress in European Key Cities
Impressive Progress in European Key Cities PMI HTU Offtake Share (Q2’24) Change vs. PY +1.4pp +2.8pp +1.5pp +0.9pp +1.7pp +0.3pp +2.2pp +0.4pp +1.9pp +0.8pp +1.3pp +3.4pp +0.0pp +5.3pp +2.5pp +4.8pp 39.0% 30.7% 28.0% 28.8% 24.6% 21.4% 21.9% 17.5% 15.0% 15.5% 9.2% 11.0% 6.5% 7.3% 7.8% 8.5% Stockholm
Slide 8: Promising Key City Growth Across Global Markets
Promising Key City Growth Across Global Markets PMI HTU Offtake Shares (Q2’24) Change vs. PY +0.6pp +1.1pp +3.3pp +0.2pp +1.2pp +1.8pp +0.5pp +0.5pp +0.7pp +1.9pp +1.3pp +1.8pp +3.3pp +2.0pp +6.4pp 20.2% 17.3% 15.1% 13.1% 12.0% 12.3% 7.8% 8.6% 3.8% 4.5% 4.6% 3.2% 3.3% 3.7% 2.6% Toronto Mexico Riyadh
Slide 9: Strong ZYN Momentum, Despite Short-Term Supply Constraints
Strong ZYN Momentum, Despite Short-Term Supply Constraints ZYN and U.S. Nicotine Pouch Category ZYN Category Share (Offtake volume change vs. PY, %) (13-week period, %) ZYN U.S. Nicotine Pouch Category Retail Value Share 90% 77.7 79.3 75.6 76.8 75.8 75.6 79% 63% 50% 54% 73.0 74.3 68.4 71.0 68.6 38%
Slide 10: Combustibles: Strong Pricing & Stable Share Drives Profitability
Combustibles: Strong Pricing & Stable Share Drives Profitability Combustible Pricing Share of Cigarette Category(b) (% organic change vs. PY)(a) (Change vs. PY in pp) 2021 0.2 0.2 Flat 8.9 8.3 2022 2023 H1’24 (0.7) 5.0 2.7 2021 2022 2023 H1'24 (a) Pricing variance is based on adjusted net revenues (
Slide 11: Further Raising 2024 Growth Outlook on Strong Fundamentals
Further Raising 2024 Growth Outlook on Strong Fundamentals FY 2024 Outlook • Very Strong H1 performance Previous Updated • Continue to target close to $15bn in ‘24 Total Shipment smoke-free net revenues Volumes(a) 0-1% 1-2% • Raising ‘24 outlook for total volumes, Net Revenue Growth(b) 7-8.5% 7.5-9%
Slide 12: Smoke-Free Transformation Delivering, On Track for Strong '24
Smoke-Free Transformation Delivering, On Track for Strong ‘24 • Powerful combination of underlying strength and pro- active steps provides best-in-class growth profile • Further raising ‘24 growth outlook with accelerated top-line and margin expansion • Broadening momentum, confident in ‘24-26 targe
Slide 13: Appendix
Championing a Smoke-Free World 2024 Second-Quarter Results July 23, 2024 Championing a Smoke-Free World Appendix 26
Slide 14: Estimated Currency Variance on 2024 EPS
Estimated Currency Variance on 2024 EPS ($/share) Q1’24 Q2’24 Q3’24 Q4’24 FY’24 Total PMI Currency Variance vs. PY(a) $(0.20) $(0.18) $(0.02) +$0.06 $(0.34) (a) At prevailing exchange rates 27 Source: PMI Financials or estimates 2024: EPS Guidance Full-Year 2024 ($/share) Forecast 2023 Growth Report
Slide 15: Europe: PMI HTU Adjusted Share of Market
Europe: PMI HTU Adjusted Share of Market Change Change Change H1’24 vs. PY H1’24 vs. PY H1’24 vs. PY Austria 8.4% +1.4pp Hungary 32.4% +4.0pp Romania 8.6% +0.6pp Slovak Croatia 9.3 +1.3 Italy 17.2 +0.2 Republic 17.3 +0.9 Czech Republic 15.4 +0.7 Lithuania 28.3 (0.9) Slovenia 14.9 +2.4 Germany 6.2 +0
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