PMI Revenues Up by One-Fifth

Philip Morris International announced its 2023 second-quarter results.

Reported net revenues were up by 19 percent, excluding currency. Pro forma (including Swedish Match in all periods) adjusted net revenue growth was 11.1 percent, excluding currency. Combustible tobacco net revenue growth was 6 percent; growth was 7.4 percent on an organic basis driven by pricing of over 9 percent.

Market share for heated-tobacco units (HTUs) in IQOS markets were up by 1.6 points to 9.2 percent. Adjusted in-market sales volume for HTUs, which excludes the net favorable impact of estimated distributor and wholesaler inventory movements, was up by an estimated 16 percent.

Total IQOS users at quarter end were estimated at approximately 27.2 million (up by 1.4 million versus March 2023), of which approximately 19.4 million had switched to IQOS and stopped smoking.

Zyn nicotine pouch shipment volume in the U.S. was 89.9 million cans, representing growth of 53.1 percent versus second-quarter 2022 Swedish Match shipments of 58.7 million cans.

Declared regular quarterly dividend was $1.27 per share, or an annualized rate of $5.08 per share.

“Our strong business momentum continued with an excellent second quarter,” said CEO Jacek Olczak in a statement. “Total cigarette and HTU shipment volume grew by 3.3 percent, underpinning double-digit growth in net revenues and currency-neutral adjusted diluted EPS.

“The outstanding performance of Swedish Match—fueled by the growth of Zyn in the U.S.—is accelerating our smoke-free transformation and is complementing IQOS in growing our smoke-free leadership whilst we also deliver resilient combustibles performance with enhanced pricing.

“Our strong fundamentals give us further confidence as we enter the second half of the year, particularly as certain inflationary and operational pressures ease. We are therefore raising our full-year 2023 forecast for organic net revenue growth to a range of 7.5 percent to 8.5 percent and currency-neutral adjusted diluted EPS growth to a range of 8 percent to 9.5 percent.

“As we look to the longer term, we are complementing our smoke-free transformation with the further development of our wellness and healthcare business. While we have experienced some initial headwinds, we remain committed to wellness and healthcare, with a focused strategy on several attractive growth opportunities.”