Higher Revenues, Lower Volumes for PMI
Philip Morris International (PMI) reported net revenues of $7.59 billion in the first quarter of 2021, up from $7.15 billion in the comparable 2020 quarter. Operating income was $3.44 billion compared with $2.79 billion in the prior year period. Adjusted operating income amounted to $3.49 billion, up 25.2 percent from the 2020 quarter. PMI reported an adjusted operating income margin of 46 percent in the first quarter of 2021.
The company shipped 167.25 billion cigarettes and heated-tobacco units in the first quarter of 2021, down 3.7 percent from the volume shipped in the first quarter of 2021. Heated-tobacco unit shipments increased 29.9 percent to 21.73 billion from quarter to quarter, while cigarette shipments declined 7.3 percent to 145.51 billion between the reporting periods.
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.
“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 PMI CEO Andre Calantzopoulos in a statement.
“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 percent to 13 percent, reflecting net revenue growth of 5 percent to 7 percent on the same basis.”