Philip Morris International Inc · NYSE:PM
Philip Morris International — Q1 2024 Earnings Presentation
16 slides from Philip Morris International's earnings presentation, Apr 23, 2024
Slide 1: 2024 First-Quarter Results
Championing a Smoke-Free World 2024 First-Quarter Results April 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: Q1, 2024: Excellent Start to the Year
Q1, 2024: Excellent Start to the Year Organic Adj. Growth Growth incl. Currency Shipment Volume +3.6% (Variance vs. PY) Net Revenues +11.0% +8.6% (Variance vs. PY) Operating Income +22.2% +11.3% (Variance vs. PY) Adj. Diluted EPS +23.2% +8.7% (Variance vs. PY) Note: Growth rates presented on an orga
Slide 4: Top-Line Growth Powered by Volumes, Pricing & Category Mix
Top-Line Growth Powered by Volumes, Pricing & Category Mix (1.2)pp +11.0% +3.1pp Geographic Mix & Other (2.4)pp +8.6% Smoke-Free Currency Mix Impact +5.5pp +2.2pp +3.6% Oral SFP Pricing (Combustibles & Smoke-Free(a)) Q1'24 Organic Q1'24 Adj. Organic Shipment Net Revenue Net Revenue Volume Growth Gro
Slide 5: Gross Margins and SG&A Driving Strong OI Margin Expansion
Gross Margins and SG&A Driving Strong OI Margin Expansion Adjusted OI Margin 41.0% +90bps Adj. OI Margin +2.2pp (2.8)pp SG&A Currency 38.2% 37.3% +1.5pp Currency Gross Margin Q1'23 Q1’24 Q1'24 (excl. Currency) 9 Source: PMI Financials or estimates Broad-Based Margin Expansion Across Regions Organic
Slide 6: PMI HTUs: Second-Largest 'Brand' in IQOS Markets
PMI HTUs: Second-Largest ‘Brand’ in IQOS Markets Share in IQOS Markets (Q1’24)(a) Excluding Indonesia 11.8% IQOS #1 ‘Brand’ 10.2% 10.3% 11 Markets 8.4% #2 3.5% Marlboro PMI HTUs Winston Camel Gudang L&M Cleopatra Garam (a) Reflects 72 markets (including Indonesia, following broader commercialization
Slide 7: Impressive Progress in European Key Cities
Impressive Progress in European Key Cities PMI HTU Offtake Share (Q1’24) Change vs. PY +1.3pp +1.4pp +1.6pp +0.8pp +0.7pp +1.8pp +1.0pp +4.6pp +0.7pp +1.4pp +4.3pp +4.4pp +2.9pp +3.2pp +4.6pp 39.7% 31.6% 28.7% 30.2% 25.7% 22.4% 20.1% 21.6% 16.3% 12.3% 6.4% 7.8% 8.2% 8.4% 5.8% Amsterdam Stockholm Mad
Slide 8: Premium Innovation Driving IQOS & HnB Category
Premium Innovation Driving IQOS & HnB Category Japan HTU Offtake Share(a) Tokyo Monthly Offtake Category Share(a) Total PMI Combustibles 30% 29.9% 25% TEREA 20% Mar’24 20.4% 50.8% 15% SENTIA 49.2% 10% 8.8% 5% HTUs 0% 2021 2022 2023 2024 2015 2017 2019 2021 2023 (a) Based on 3 C-Store Chains offtake.
Slide 9: ZYN Growth Momentum Continues
ZYN Growth Momentum Continues 79.3% Q1’24 Category Retail ZYN U.S. Shipment Volumes Value Share (13-week period) (12 months rolling, million cans) 74.3 73.0 71.0 67.8 68.4 Category Volume Share 66.7 66.6 67.3 67.3 67.4 443 (in %, 13-week period) 385 334 292 261 238 203 220 157 174 187 126 143 103 11
Slide 10: Accelerating & Expanding Our Smoke-Free Journey
Accelerating & Expanding Our Smoke-Free Journey • ILUMA i launched in Japan • HTU portfolio expansion • Preparing IQOS U.S. pilots • International ZYN roll-out continues • Focused strategy for VEEV showing promising results 19 Raising 2024 Growth Forecasts on Strong Fundamentals • Stronger outlook o
Slide 11: Sustainability: Business Transformation Metrics
Sustainability: Business Transformation Metrics 2015 2021 2022 2023 Aspirations Number of markets where smoke-free products are available for sale*(a) 7 71 73 84 100 by 2025 Number of markets where adjusted net revenues from smoke- free products exceed 50% of adjusted total net revenues* - 10 17 25
Slide 12: On Track for Strong 2024 Performance
On Track for Strong 2024 Performance • Strong IQOS and ZYN momentum, accelerated top- line and margin expansion • Excellent start to the year, raising full-year currency- neutral growth outlook • Focused on delivering USD performance, mitigating currency headwinds • Confident in 2024-26 targets, wit
Slide 13: Appendix and Reconciliation of Non-GAAP Measures
Championing a Smoke-Free World 2024 First-Quarter Results April 23, 2024 Championing a Smoke-Free World Appendix and Reconciliation of Non-GAAP Measures 26
Slide 14: 2024: EPS Guidance
2024: EPS Guidance Full-Year 2024 ($/share) Forecast 2023 Growth Reported Diluted EPS $5.70 – $5.82 $5.02 Adjustments: - Asset impairment and exit costs(a) 0.09 0.06 - Termination of distribution arrangement in the Middle East - 0.04 - Impairment of goodwill and other intangibles 0.01 0.44 - Amortiz
Slide 15: Business Transformation Metrics - Glossary
Business Transformation Metrics - Glossary • Unless otherwise stated, all applicable business transformation metrics include Swedish Match related data as of November 11, 2022 (acquisition date), as well as Vectura Fertin Pharma. In 2023, we evaluated and republished a new set of aspirations for 203
Slide 16: 2024 First-Quarter Results
Championing a Smoke-Free World 2024 First-Quarter Results April 23, 2024
Philip Morris International — Q1 2024 Earnings Presentation on 6ix