Tag: pmi

  • Retailers say PM still on top, e-cigs will continue to grow

    The first quarter of 2013 has come and gone, and with it, a UBS-CSP survey of a variety of convenience store operators–whose sizes ranged from one store location to more than five hundred—on a range of tobacco-related issues. The exclusive study brought good news for industry leader Philip Morris and even better news for the growing e-cigarette segment.

    When asked which of the Big Three premium cigarette brands would gain the most market share in 2013, the majority (54 percent) of retailers surveyed named Marlboro; By comparison, 27 percent picked Camel and 18 percent picked Newport, according to a story on CSPnet.com

    The majority of survey respondents expected only modest market share for Philip Morris’ new offerings: 60 percent anticipate Marlboro NXT (the company’s capsule cigarette) to have a .25-.5 percent market share by the end of 2013; 71 percent believe Marlboro Southern Cut will have a .25-.5 percent share.

    E-Cigarettes

    The news was even more positive for e-cigarettes: more than three quarters of surveyed retailers are carrying at least one e-cigarette in their stores and over half are carrying more than one brand. The study results showed retailers are trying a multitude of e-cigarette brands, although blu and NJOY are leading the way.

    “Blu is going like gangbusters right now,” said one retailer. Another said he liked the Lorillard-owned company’s “combination of good merchandising and marketing.”

    Meanwhile, retailers like the wide availability and distribution of NJOY, along with the fact that the new NJOY Kings product “feels and looks like a real cigarette.”

    While retailers were somewhat mixed on which brand will lead the pack, they largely agreed that the segment is here to stay: 95 percent said they believe electronic cigarettes will continue to grow as a category. When asked to explain their opinion, respondents cited the high cost of cigarettes, smoking bans and health concerns as reasons for continued growth.

  • Philip Morris Q1 profit declines on costs, cuts full-year EPS view

    Tobacco giant Philip Morris International Inc. Thursday reported a decline in first-quarter profit, reflecting higher costs. Meanwhile, earnings per share improved from last year. The company also lowered its full-year 2013 earnings outlook for prevailing exchange rates only, according to a story on RTTNews.com.

    However, the firm reiterated its annual constant-currency adjusted diluted earnings per share growth rate target of 10 to 12 percent, reflecting its pricing actions and market share momentum.

    Louis Camilleri, chairman and CEO of the company said, “Our first quarter was relatively difficult, with our headline results marred by a number of known factors, including inventory movements, the 2012 leap year effect, currency and a slowly improving – but nevertheless substantial erosion in our – volume in the Philippines.”

    Philip Morris, the owner of Marlboro, Parliament and Virginia Slims cigarette brands, said its Cigarette shipment volume declined 6.5 percent from last year. Excluding Philippines, shipment volume was down 2.1 percent. Philippines had unfavorable impact of the disruptive January 2013 excise tax increase.

    In the first quarter, net earnings attributable to the company declined to $2.13 billion from $2.16 billion in the previous year. However, on a per share basis, earnings rose to $1.28 from $1.25 in the prior-year quarter, reflecting lower share count. Reported earnings, excluding currency was $1.35 per share in the first quarter of 2013.

    Adjusted earnings for the recent quarter were $1.29 per share and adjusted earnings, excluding unfavorable currency of $0.07, totaled $1.36 per share.

    On average, 12 analysts polled by Thomson Reuters expected the company to earn $1.34 per share for the quarter. Analysts’ estimates typically exclude special items.

    Net revenues for the quarter grew 2.8 percent to $18.53 billion. Net revenues, excluding excise taxes, rose 1.8 percent to $7.58 billion. Nine analysts had consensus revenue estimate of $7.52 billion for the quarter. Excluding currency, the revenue increase was 3.2 percent.

    In European Union, revenues declined 4 percent, while Eastern Europe, Middle East & Africa posted a revenue growth of 11.3 percent. Asia showed a marginal improvement of 0.5 percent, while revenues from Latin America & Canada decreased 0.3 percent.

    Marketing, administration and research costs advanced to $1.62 billion from $1.51 billion in the preceding year.

    For full-year 2013, for prevailing exchange rates only, the company now expects reported earnings per share to be in a range of $5.55 to $5.65, down from the prior outlook of $5.68 to $5.78 per share.

    Excluding an unfavorable currency impact, at prevailing exchange rates, of about $0.19, reported earnings per share are still projected to increase by about 10 to 12 percent, compared to adjusted earnings per share of $5.22 in 2012.

  • Higher 1Q profit, revenue expected from PMI

    Philip Morris International Inc., which sells Marlboro and other brands abroad, is expected to report higher profit and revenue when it releases its first-quarter results before the market opens on Thursday. Whether cutting costs and raising prices continued to help PMI compensate for consumers buying fewer, or cheaper, cigarettes has investors anticipating the announcement.

    Cigarette shipments rose about 3 percent to 233.1 billion in the fourth quarter that ended in December, and it market share rose in a number of key markets, according to a story in The Washington Post.

    Shipments grew 7 percent in the company’s region that encompasses Eastern Europe, the Middle East and Africa, but fell about 6 percent in the EU as the region continues to be under pressure due to high unemployment and the continent’s government debt crisis. Shipments also fell about 1 percent in Latin America and Canada.

    In Asia, one of its largest growth areas, shipments grew nearly 6 percent. The company benefited from increases in Japan following the March 2011 earthquake and tsunami.

    The events offered the company a sales opportunity because supply disruptions led Japan Tobacco Inc., the world’s No. 3 tobacco maker, to stop shipping cigarettes within Japan.

    Philip Morris International also bought the Philippines company Fortune Tobacco Co. in February 2010, bolstering its Asian business.

  • PMI, Spanish tobacco renew relationship

    Philip Morris International is strengthening its long-term commitment to the future of tobacco growing in Spain by renewing its Framework Collaboration Agreement with the Spanish Ministry for Agriculture, Food and the Environment for the next three years, the company said last week.

    “As part of the new Agreement signed today in Madrid and subject to the agreed terms, PMI will buy 33 percent more of the Spanish tobacco crop in 2013 compared to 2012,” the company said in a note posted on its website yesterday. “In 2014 and 2015 PMI will increase its tobacco purchases by an annual rate of approximately 5 percent.”

    The new agreement was signed by Spain’s Minister for Agriculture, Food and the Environment Miguel Arias Cañete, and Spaniard Drago Azinovic Gamo, president of PMI’s EU region.

    “We are pleased with this agreement, which reaffirms the support of the Spanish government, the regional government of Extremadura and PMI for the continued, sustainable growth of quality tobacco leaf in Spain,” said Drago Azinovic.

    “Despite the increasingly competitive and continually changing business environment, PMI remains committed to the future of this sector and the jobs it creates in Spain.

    “It is for this reason that, along with the entire tobacco sector, we are especially concerned about the impact the extreme proposals in the proposed European Tobacco Products Directive currently being debated in Brussels.

    “This directive could very negatively affect the entire sector that in our country generates 56,000 jobs and approximately 6 percent of the Spanish government’s total tax revenue.”

    The agreement is said to reaffirm the commitment that PMI, the government of Extremadura and the Spanish Ministry for Agriculture and Environment have made to focus on efforts to improve the quality of Spanish tobacco and make it more competitive, “particularly against the backdrop of an increasingly challenging economic and regulatory environment.”

    “It also includes provisions that will enhance the environmental sustainability of tobacco growing areas by encouraging good agricultural practices,” the note said. “To assist in putting these practices into place, PMI will offer tobacco growers’ associations and others involved in the growing and processing of tobacco, training sessions on good agricultural practices over the next three years.”

  • Calantzopoulos new CEO of PMI

    André Calantzopoulos has been appointed CEO of Philip Morris International. Calantzopoulos has served as PMI’s chief operating officer since the company’s spin-off in March 2008. Louis Camilleri, PMI’s previous CEO, will remain as chairman of the board and as an employee of the company.

    Since the spin-off, Camilleri and Calantzopoulos have worked closely together in their respective roles as CEO and CEO. Under their combined leadership, PMI has solidified its position as the largest and most profitable international tobacco company, while expanding its global market share, excluding China and the United States, to a record 28.8 percent in 2012.

    “After eleven years of leading PMI and its former parent, and with the company squarely poised for future success, I decided that the time has come for me to relinquish my executive role,” said Camilleri. “I am delighted to hand over the management responsibility of the company to André. He is well equipped, and the company is well positioned, to continue to deliver superior shareholder value.”

    “I am deeply honored that Louis and the board have the confidence in me to continue to build on PMI’s tremendous success,” said Calantzopoulos. “I am particularly grateful to Louis for his mentorship over a long period of time, during which I have always been deeply impressed with his passion for the company, his critical and insightful analysis and vision, his regard for each PMI employee, and his devotion to the integrity and transparency of communications to investors and to enhancing shareholder value. He has set the standard by which all future leaders of PMI will be judged.”

    As chairman of the board, Camilleri will assist the CEO in long-term strategy, serve as the CEO’s sounding board and continue to fulfill the duties of chairman of the board of directors. Calantzopoulos will have the management responsibility for the company and will report to the full board of directors.

     

     

     

  • PMI volumes down

    Philip Morris International reported net revenues, excluding excise taxes, of $7.9 billion in the third quarter of 2012, down 5.3 percent from the comparable 2011 quarter. Its cigarette shipment volume was down by 1.3 percent. Operating companies’ income was down 1.5 percent, to $3.7 billion.

    Excluding the impact of currency exchange rates and acquisitions, reported net revenues, excluding excise taxes, were up by 3.4 percent, and reported operating companies’ income was up by 4.8 percent.

    “Despite the difficult comparisons in the third-quarter, we remain confident that the fundamentals of our business are solid as a whole, which is testament to our progress, especially in our Asia and EEMA regions,” said Louis C. Camilleri, chairman of the board and chief executive officer.

    “We expect to achieve our annual organic volume growth target of 1 percent in 2012 and our adjusted diluted EPS growth to be in line with our mid-to-long term constant currency annual growth target.”