Philip Morris International Inc. Declares Regular Quarterly Dividend of $1.30 Per Share

Rhea-AI Summary

Philip Morris International Inc. (PM) declares a quarterly dividend of $1.30 per share, focusing on a smoke-free future and expanding product portfolio beyond tobacco. PMI has invested $12.5 billion in innovative smoke-free products, with smoke-free products contributing 37% to total revenues in 2023.

Insights

Financial Analyst

The declaration of a regular quarterly dividend of $1.30 per common share by Philip Morris International Inc. (PMI) is a concrete reflection of the company's financial health and its commitment to returning value to shareholders. This action typically indicates a stable cash flow situation, reinforcing investor confidence in the company's ability to maintain or grow its dividend payouts. From a financial perspective, the dividend yield, which can be calculated by dividing the annual dividends per share by the share price, will be a key figure for investors to monitor. The consistency and potential growth of dividend payouts are often seen as indicators of a company's long-term profitability and financial stability.

Furthermore, PMI's strategic pivot towards smoke-free products is a significant factor to consider. The company's transition aligns with global trends of increased health consciousness and regulatory pressures on traditional tobacco products. The diversification into wellness and healthcare through the Vectura Fertin Pharma business could open additional revenue streams and reduce dependency on the traditional tobacco sector. However, investors should carefully consider the risks associated with this strategic shift, including the capital required for research and development and the potential for regulatory hurdles in the healthcare industry.

Market Research Analyst

PMI's acquisition of Swedish Match and the subsequent expansion of its smoke-free product portfolio, including the IQOS and ZYN brands, positions the company at the forefront of the industry's transformation. The designation of IQOS Platform 1 devices and General snus as Modified Risk Tobacco Products by the FDA is a competitive advantage that could facilitate market penetration and consumer adoption. The fact that smoke-free products accounted for approximately 37% of PMI’s total full-year 2023 net revenues is a testament to the successful uptake of these products.

From a market perspective, PMI's expansion into 84 markets with its smoke-free products reflects a robust international growth strategy. The estimated 20.8 million adults who have switched to IQOS and stopped smoking represent a significant consumer base that is likely to drive future revenue growth. However, it is crucial to monitor the regulatory environment, as changes in legislation could impact market access and product sales. Additionally, the company's ambitious move into wellness and healthcare will require close scrutiny to assess market acceptance and the integration of these new offerings with PMI's existing product lines.

Medical Research Analyst

PMI's investment in developing and substantiating innovative smoke-free products is a notable development within the tobacco industry, reflecting a broader shift towards harm reduction strategies. The company's focus on scientific assessment capabilities, including pre-clinical systems toxicology, clinical and behavioral research and post-market studies, underscores the importance of evidence-based product development in this sector. As PMI continues to invest in these areas, stakeholders should anticipate advancements in product safety and efficacy, which could further solidify PMI's position within the smoke-free market.

The healthcare and wellness ambitions announced by PMI, particularly through its Vectura Fertin Pharma business, indicate a strategic move beyond traditional tobacco and nicotine products. This expansion into new domains suggests a proactive approach to diversification in response to the evolving public health landscape. The success of this endeavor will hinge on the company's ability to leverage its life sciences expertise to develop products that meet regulatory standards and consumer health needs. Stakeholders should watch for the outcomes of clinical trials and regulatory reviews that will shape the potential of PMI's healthcare and wellness portfolio.

STAMFORD, CT--(BUSINESS WIRE)-- Regulatory News:

The Board of Directors of Philip Morris International Inc. (NYSE: PM) today declared a regular quarterly dividend of $1.30 per common share, payable on April 9, 2024, to shareholders of record as of March 21, 2024. The ex-dividend date is March 20, 2024. For more details on stock, dividends and other information, see www.pmi.com/dividend.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is a leading international tobacco company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested $12.5 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. In 2022, PMI acquired Swedish Match – a leader in oral nicotine delivery – creating a global smoke-free champion led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug Administration has authorized versions of PMI’s IQOS Platform 1 devices and consumables and Swedish Match’s General snus as Modified Risk Tobacco Products. As of December 31, 2023, PMI's smoke-free products were available for sale in 84 markets, and PMI estimates that approximately 20.8 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 37% of PMI’s total full-year 2023 net revenues. With a strong foundation and significant expertise in life sciences, PMI announced in February 2021 its ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma business, aims to enhance life through the delivery of seamless health experiences. For more information, please visit www.pmi.com and www.pmiscience.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240307743943/en/

Philip Morris International

Investor Relations:

New York: +1 (917) 663 2233

Lausanne: +41 (0)58 242 4666

Email: InvestorRelations@pmi.com

Media: David Fraser

Lausanne: +41 (0)58 242 4500

Email: David.Fraser@pmi.com

Source: Philip Morris International

FAQ

What is the dividend declared by Philip Morris International Inc. (PM)?

Philip Morris International Inc. (PM) declared a regular quarterly dividend of $1.30 per common share, payable on April 9, 2024.

What is the ex-dividend date for Philip Morris International Inc. (PM)?

The ex-dividend date for Philip Morris International Inc. (PM) is March 20, 2024.

How much has PMI invested in developing smoke-free products?

PMI has invested $12.5 billion to develop, scientifically substantiate, and commercialize innovative smoke-free products since 2008.

What percentage of PMI's total revenues in 2023 came from smoke-free products?

Smoke-free products accounted for approximately 37% of PMI's total full-year 2023 net revenues.

Which company did PMI acquire in 2022?

PMI acquired Swedish Match in 2022, a leader in oral nicotine delivery, creating a global smoke-free champion.