Cigarette Maker Philip Morris Q2 Earnings Smashes Estimates

  • Marlboro-maker Philip Morris International Inc PM reported second-quarter FY22 sales growth of 3.1% year-on-year, to $7.83 billion, beating the analyst consensus of $6.67 billion.
  • Cigarette and heated tobacco unit shipment volume in Q2 rose by 1.1% Y/Y, with 15.7% growth in the Middle East & Africa.
  • Marlboro cigarette shipment volume increased 7.2%mainly driven by PMI Duty-Free, Russia, and Turkey. Chesterfield shipment volume jumped 19.7%, and Sampoerna A saw a 6.5% hike.
  • Pro forma total IQOS users at Q2 end was about 19 million, a 20.5% rise Y/Y.
  • Revenue from smoke-free products accounted for 29.9% of total revenue.
  • Adjusted operating margin for the quarter compressed from 44.3% to 41.2%, with $3.2 billion in adjusted operating income.
  • Adjusted EPS of $1.32 beat the consensus of $1.25.
  • The company held $5 billion in cash and equivalents as of June 30, 2022.
  • Outlook: Philip Morris expects FY22 pro forma adjusted EPS of $5.23 - $5.34 and pro forma adjusted EPS, ex-currency, of $6.09 - $6.20, versus the estimate of $5.45.
  • Price Action: PM shares are trading higher by 2.42% at $92.00 in premarket on the last check Thursday.
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