PMI reports cigarette volume growth in first quarter
Philip Morris International’s cigarette shipment volume during the first quarter of 2015, at 198,757 million, was increased by 1.4 percent on that of the first quarter of last year, 195,961 million.
Volume was increased by 4.4 percent to 64,721 million in the company’s Eastern Europe, Middle East and Asia (EEMA) region and by 2.4 percent to 42,721 million in the EU. But it was down by 1.0 percent to 70,125 million in Asia and by 1.2 percent to 21,190 million in its Latin America and Canada region.
Marlboro shipments of 67.2 billion were up by 2.1 percent, driven mainly by its performances in the EU, notably in France, Italy and Spain; and in the EEMA, notably in Algeria, Saudi Arabia and Turkey, partly offset by shipments in Egypt and Ukraine. Marlboro shipments declined in Asia, mainly due to the brand’s performance in Japan and Korea, partly offset by its results in the Philippines, and they declined slightly in Latin America and Canada mainly due to the brand’s performance in Argentina, partially offset by sales in Brazil and Mexico.
L&M shipments of 22.7 billion were up by 8.2 percent; Parliament shipments of 9.6 billion were down by 3.5 percent; Bond Street shipments of 9.2 billion were down by 1.1 percent; Chesterfield shipments of 9.5 billion were increased by 8.6 percent; Philip Morris shipments of 7.8 billion were down by 3.3 percent; and Lark shipments of 6.4 billion were down by 5.6 percent.
PMI’s shipment volume of other tobacco products (OTP), in cigarette equivalent units, was up by 2.1 percent, mainly due to growth in the fine-cut category, notably in the Czech Republic and Italy, partly offset by its performances in Germany and Portugal.
The total volume of cigarettes and OTP was up by 1.4 percent.
PMI’s market share was said to have increased in a number of key markets, including Algeria, Argentina, Australia, Austria, Belgium, the Czech Republic, Egypt, France, Germany, Hong Kong, Indonesia, Italy, Japan, South Korea, the Netherlands, Poland, Russia, Saudi Arabia, Spain and Switzerland.
PMI said that its reported diluted earnings per share, at $1.16, were down by $0.02 or 1.7 percent on those of the first quarter of 2014; or, excluding the effects of currency factors, were up by $0.29 or 24.6 percent.
Adjusted diluted earnings per share, at $1.16, were down by $0.03 or 2.5 percent from $1.19, though excluding currency factors, adjusted diluted earnings were up by $0.28, or 23.5 percent.
Reported net revenues, excluding excise taxes, were down by 4.4 percent to $6.6 billion; or, excluding currency factors and the impact of acquisitions, reported net revenues were up by 9.1 percent.
Reported operating companies’ income was down by 2.2 percent to $3.0 billion; or, excluding currency factors and the impact of acquisitions, reported operating companies’ income was up by 17.2 percent.
Adjusted operating companies’ income was down by 2.9 percent to $3.0 billion; or, excluding currency factors and the impact of acquisitions, adjusted operating income was up by 16.3 per cent.
Reported operating income was down by 2.7 percent to $2.9 billion.
“Our strong first-quarter results are an excellent start to the year,” said CEO André Calantzopoulos.
“Our organic volume and market share performance was better than we originally forecast, underpinned by the investments we made in 2014 and an improving operating environment this year.
“Our robust business momentum is such that we are raising our guidance for the year and now forecast, at prevailing exchange rates, constant-currency adjusted diluted EPS growth of 9 percent-11 percent.
“While currency volatility persists, we remain focused on managing our cash flow prudently and are steadfast in our aim to return around 100 percent of our free cash flow to our shareholders.”
