Philip Morris International Inc. Reports Strong 2021 First-Quarter Reported Diluted EPS of $1.55 Versus $1.17 in 2020, Reflecting Adjusted Diluted EPS Growth of 21.5% on an Organic Basis

Rhea-AI Summary

Philip Morris International Inc. (NYSE: PM) announced strong first-quarter results for 2021. Reported diluted EPS reached $1.55, a 32.5% increase. Adjusted diluted EPS was $1.57, up by 29.8%. Although cigarette shipments decreased by 7.3%, heated tobacco unit shipments surged by 29.9% to 21.7 billion. Net revenues rose 6.0%, with smoke-free products contributing 28.0% of total revenues. The company increased its full-year guidance, expecting organic adjusted diluted EPS growth of 11% to 13% and net revenue growth of 5% to 7%. A quarterly dividend of $1.20 was declared.

Positive

• Reported diluted EPS of $1.55, up 32.5%; adjusted diluted EPS at $1.57, up 29.8%.
• Net revenues increased by 6.0%, with smoke-free products accounting for 28.0% of revenues.
• Operating income rose 23.5%, with adjusted operating income margin at 46.0%.
• Total IQOS users estimated at 19.1 million, with 14 million having fully switched from smoking.
• The company raised its full-year outlook to reflect positive momentum.

Negative

• Cigarette and heated tobacco unit shipment volume down by 3.7%.
• Dependence on temporary factors for first-quarter results may reverse in Q2.

Regulatory News:

Philip Morris International Inc. (NYSE: PM) today announces its 2021 first-quarter results. Growth rates presented in this press release on an organic basis reflect currency-neutral underlying results. Adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures are included in the schedules to this press release.

2021 FIRST-QUARTER HIGHLIGHTS

• Reported diluted EPS of $1.55, up by 32.5%; up by 23.9%, excluding currency
• Adjusted diluted EPS of $1.57, up by 29.8%; up by 21.5% on an organic basis
• Cigarette and heated tobacco unit shipment volume down by 3.7% (reflecting cigarette shipment volume down by 7.3%, and heated tobacco unit shipment volume up by 29.9% to 21.7 billion units)
• Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.7 points to 7.6%
• Net revenues up by 6.0%; up by 2.9% on an organic basis
• Net revenues from smoke-free products accounted for 28.0% of total net revenues
• Operating income up by 23.5%; up by 16.8%, excluding currency
• Adjusted operating income up by 18.5% on an organic basis
• Adjusted operating income margin of 46.0%, up by 5.9 points on an organic basis
• Total IQOS users at quarter-end estimated at approximately 19.1 million, of which approximately 14.0 million have switched to IQOS and stopped smoking
• During the quarter, PMI declared a regular quarterly dividend of $1.20 per common share, representing an annualized rate of $4.80

"We are pleased to have delivered a very strong start to the year, with top- and bottom-line results coming in well ahead of our expectations for the first quarter despite the ongoing challenges of the pandemic," said André Calantzopoulos, Chief Executive Officer.

"This performance was driven by the continued strength of IQOS, in particular, reflecting excellent user, volume and market share momentum, as well as further progress with manufacturing and operating cost efficiencies. Our results also benefited from the timing of specific factors, notably associated with shipments in certain markets and the phasing of commercial investments, which are expected to partially reverse in the second quarter."

"While the speed and shape of the global recovery from the pandemic remains uncertain, we are raising our full-year outlook, on an underlying basis, to reflect the strong results and positive momentum of the first quarter. Our guidance now represents organic adjusted diluted EPS growth of 11% to 13%, reflecting net revenue growth of 5% to 7% on the same basis."

2021 FULL-YEAR FORECAST

Full-Year

2021 Forecast

2020

Organic Growth

FAQ

What were Philip Morris's first-quarter results for 2021?

Philip Morris reported diluted EPS of $1.55, a 32.5% increase, with net revenues up by 6.0%.

What is the forecast for Philip Morris in 2021?

The company raised its full-year outlook to expect organic adjusted diluted EPS growth of 11% to 13%.

How many IQOS users does Philip Morris have as of Q1 2021?

As of the end of Q1 2021, Philip Morris estimated approximately 19.1 million IQOS users.

What dividend did Philip Morris declare in Q1 2021?

PM declared a quarterly dividend of $1.20 per common share, totaling an annualized rate of $4.80.

What was the impact of the pandemic on Philip Morris's first-quarter performance?

Despite pandemic challenges, PM's results surpassed expectations, driven by IQOS momentum.