Tag: Switzerland

PMI is environmental leader
Philip Morris International today was again recognized as a global leader for environmental action in the annual CDP rankings, according to a note posted on the company’s website.
‘For the fourth year in a row, PMI is on the CDP Climate A List for taking comprehensive action on climate change and for its transparent disclosure process,’ the note said.
‘In addition, PMI achieved A List status for CDP Water, recognizing the company’s water stewardship initiatives.
‘PMI is one of only 25 companies that scored an A for both climate and water, placing the company in the top one percent of corporations known as the “A Listers” for both schemes.’
CDP, formerly known as the Carbon Disclosure Project, is said to be the leading international not-for-profit organization independently assessing the environmental efforts of thousands of companies worldwide against its scoring methodology.
More than 3,000 major companies submitted information for independent assessment for 2016.
CDP’s A List recognizes companies around the world, spanning different industries, for leadership in their actions to address environmental risk during the past reporting year.
Its environmental benchmark reports are produced at the request of 827 investors with assets of US$100 trillion.
“Climate change and clean water shortage are among the biggest challenges facing humanity today,” said PMI’s CEO André Calantzopoulos.
“I am proud that PMI is one of only 25 companies that achieved double ‘A List’ status for both climate and water in CDP’s rankings, and moving forward, even more global action is needed and must be encouraged to collectively address these environmental priorities.”
PMI said in its note that it had made a number of environmental improvements and introduced new initiatives in 2016, including:
- An absolute carbon emissions reduction of more than four percent compared to that of 2015, resulting in a saving of about 250,000 tons of CO2 per year versus that of 2010, due to environmental improvements in its operations;
- The adoption of science-based targets to achieve a 40 percent reduction in its carbon footprint across its entire value chain by 2030 and a 60 percent reduction by 2040;
- The introduction of an internal price on carbon to help the company rank and prioritize its carbon-reduction projects to meet its targets, such as plans to have 80 percent of the electricity used in its factories coming from renewable sources by 2030; and
- A company-wide water footprint analysis, risk assessment, and set of initiatives throughout the company’s entire value chain enabling it to make step changes in water stewardship.
October 24, 2017
PMI to webcast results
Philip Morris International is due to host a live audio webcast at www.pmi.com/2017Q3earnings from 09.00 Eastern Time on October 19 to discuss its 2017 third-quarter results, which will be issued about 07.00 the same day.
During the webcast, which will be in listen-only mode, CFO Jacek Olczak will discuss the results and answer questions from the investment community and news media.
The audio webcast may be accessed also on iOS or Android devices by downloading PMI’s free Investor Relations Mobile Application at www.pmi.com/irapp.
An archived copy of the webcast will be available until 17.00 on November 17 at www.pmi.com/2017Q3earnings.
And the presentation slides and script will be available at the same address.
October 13, 2017
PMI chief says goals aligned
The CEO of Philip Morris International, André Calantzopoulos, has told a grouping of health organizations that his company’s core strategy is not at odds with their demand that it stops selling cigarettes.
In an open letter posted on the PMI website, Calantzopoulos said that he had recently received an open from 122 health organizations in which they had called on PMI to stop selling cigarettes; and to do so immediately.
‘In essence, the letter says that anything less than shutting down PMI’s cigarette business is “irresponsible” and “monstrous”,’ Calantzopoulos wrote.
‘In the interest of open discussion, I’ll take the letter’s demand at face value and assume that I could simply order PMI to stop its cigarette sales. What would that accomplish from the perspective of public health? Would smoking prevalence change?
‘Globally, PMI has a market share of approximately 15 percent, which represents about 150 million men and women who smoke our cigarette brands. If those brands are suddenly unavailable, our competitors – both the lawful and the illicit ones – would quickly step in to meet demand. The supply would change, and there would be short-term turmoil on the market, but people would still smoke.
‘In short, there is no benefit to society for us to stop selling cigarettes from one day to the next. Nonetheless, and perhaps surprisingly, our core strategy is not at odds with the demands of your letter. Indeed, our paramount business strategy is to replace cigarettes with less-harmful, smoke-free alternatives. That’s what we call a smoke-free future, and it could mean that PMI will one day, ideally sooner rather than later, no longer be in the cigarette business.’
The full text of the health organizations’ letter and the current list of signatories is at: https://www.unfairtobacco.org/en/open-letter-quitpmi/.
The full text of Calantzopoulos’ letter is at: https://www.pmi.com/media-center/news/details/Index/open-letter-from-pmi.
October 3, 2017
PMI reorganizes
Philip Morris International yesterday said yesterday that it was making organizational changes intended to drive the company’s transformation toward a smoke-free future while maintaining its financial performance.
“There is no doubt that the greatest contribution PMI can make to society is to replace cigarettes with less harmful alternatives,” said CEO André Calantzopoulos. “The changes we are announcing today [September 28] reflect our desire to best equip, empower and support our organization as we transform within a rapidly evolving environment.
“They reflect the exceptional quality and depth of our senior leadership and underscore our commitment to successfully deliver solutions not only for our consumers, employees and shareholders, but also to society in general.”
Effective January 1, 2018: Calantzopoulos will continue to serve as CEO; Jacek Olczak, currently CFO, will be appointed COO, responsible for the deployment of global strategy and the delivery of results for combustible and reduced-risk products; and Martin King, currently president, Asia Region, will be appointed CFO.
PMI said also that it would in future arrange its operations in six geographic regions, rather than four, as is the case now.
The full list of the organizational changes and the biographies of those involved are available on the PMI website.
September 29, 2017
New role for JT executive
Japan Tobacco Inc. says that Koji Shimayoshi will move from his current position as senior vice president, head of the Tobacco Business Planning Division on September 30, to take up his new role as senior vice president of Japan Tobacco International’s executive committee on October 1.
September 19, 2017
IMPACT funding announced
Philip Morris International announced yesterday 32 projects that had been selected for the first funding round of PMI IMPACT, a global initiative aimed at supporting organizations in developing and implementing projects dedicated to fighting illegal trade and related crimes.
PMI said in a note posted on its website that the PMI IMPACT Expert Council had reviewed and selected the projects from more than 200 proposals that had come from public, private, and academic organizations in 18 countries.
It said the grants that would be allocated in the first round of PMI IMPACT amounted to about US$28 million.
“The creative solutions and innovative actions proposed by the selected projects can significantly help advance the global efforts against illegal trade and contribute to alleviating the pervasive consequences of crime on our economy, society, and global security,” said Jürgen Storbeck, Expert Council member. “We congratulate the successful applicants for their excellent proposals, which we now look forward to seeing implemented.”
The selected projects are said to cover a broad range of activities in the EU and neighboring countries, in line with the theme of the first round.
Many of the projects would go beyond tackling the illegal tobacco trade to explore the nexus between organized crime, terrorism, online- and offline-trafficking, and the interdependencies between different forms of illegal trade.
“It is impressive to see such a wide range of new approaches that address the core of this complex problem,” said Alvise Giustiniani, PMI’s vice president illicit trade strategies and prevention.
“Illicit tobacco trade is just one face of a growing web of crimes, and we know that it’s only through co-ordinated actions of many public and private actors that we can put an end to these illegal activities that harm consumers, damage businesses, and allow criminals to prosper.”
The projects, which are expected to be completed over the next two years, include:
- Research exploring the scope and drivers of illegal trade;
- Technical solutions and equipment to support law enforcement operations;
- Activities to enhance the capacity and proficiency of law enforcement agencies and other actors; and
- Education and awareness programs, including initiatives for greater cross-sector collaboration.
A list of the selected projects is available on the PMI IMPACT website:
http://www.pmi-impact.com/updates/firstfundinground
PMI, which has pledged US$100 million for three funding rounds of PMI IMPACT said it would soon call for project proposals for its second funding round.
September 8, 2017
Management changes
Oettinger Davidoff has appointed Beat Hauenstein as its new CEO in a move described as ‘part of the ongoing rejuvenation of the operational management’.
Hauenstein, who was previously the company’s COO, succeeds Hans-Kristian Hoejsgaard.
Meanwhile, the Board of Directors of the company has nominated Domenico Scala as its new chairman.
Domenico Scala was previously CFO of Syngenta and CEO of Nobel Biocare. Until May 2016, he chaired the independent Audit and Compliance Committee of the Fédération Internationale de Football Association. Currently, he is the chairman of Basilea Pharmaceutica, BAK Basel Economics as well as the president of BaselArea, a member of the board of overseers of Tufts University in Boston and a member of the Bank Council of Basler Kantonalbank.
Scala succeeds Andreas Schmid, who had been a board member for 10 years.
A company press note said the board of directors thanked Schmid and Hoejsgaard ‘for their many years of successful work for the company’, and wished them ‘all the best for their personal and professional future’.
August 30, 2017
PLOOM in Switzerland
Japan Tobacco International on Friday launched PLOOM TECH in Switzerland, the first launch of its tobacco vapor product outside Japan.
In a press note issued on its website, JTI said PLOOM TECH would be available nationwide in more than 1,500 stores.
It said also that the newly-launched tobacco-vapor product was the first of its kind to be sold in Switzerland. ‘With its state of the art technology, PLOOM TECH enables consumers to enjoy tobacco with “no smoke, smoke smell or ash” by indirectly heating tobacco through a vapor,’ the note said.
“We are very excited to be the first country outside Japan to introduce PLOOM TECH,” John Aurlund, JTI’s Switzerland general manager, was quoted as saying. “It is quite fitting that a technologically advanced product like PLOOM TECH begins its international adventure here in Switzerland, a country renowned for quality, precision and innovation.”
JTI said that PLOOM TECH created a tobacco-enriched vapor using a hybrid technology that heated a non-nicotine liquid that was passed through a capsule containing granulated tobacco. ‘In doing so, the tobacco is heated at around 30 degrees Celsius,’ the note said. ‘No combustion is created throughout the process and recent studies show an approximately 99 percent reduction in levels of measured constituents compared to cigarette smoke. This means that PLOOM TECH has strong potential to be a reduced risk product, while retaining all the joys and pleasures of tobacco including its authentic flavor.’
“The technology behind PLOOM TECH provides a real potential to reduce the health risks compared to smoking, while maintaining a true tobacco taste,” said Yasuhiro Nakajima, JTI’s vice president of Emerging Products. “Its innovative technology combines the best of both tobacco and e-cigarettes, adding an entirely new concept to our ever-growing portfolio in emerging products. We look forward to introducing it to Europe, one of the largest vaping markets in the world.”
PLOOM TECH is said to create no mess and to require no cleaning. ‘Other unique attributes include the ability to use the device over several separate occasions without having to dispose of the tobacco capsule,’ the note said. ‘It is also exceptionally light and comes with a long-lasting battery which runs through an entire refill pack before recharging is required.
‘PLOOM TECH is available across Switzerland in Coop Pronto and in other selected Coop and Kiosk stores. It comes in a combo kit, containing the device and a refill pack of Winston tobacco capsules, at a total price of CHF25. A refill pack, available in “balanced” or “cool purple”, sells at CHF7.50.’
July 25, 2017
PMI’s volume down sharply
Philip Morris International’s cigarette shipment volume during the second quarter to the end of June, at 193,540 million, was down by 7.5 per cent on that of the second quarter of 2016, 209,289 million.
Volume increased by 1.4 percent to 21,553 million in its Latin America and Canada region, but it fell in each of its other three regions: by 1.3 percent to 49,758 million in the EU; by 5.7 percent to 64,414 in its Eastern Europe and Middle East (EEMA) region; and by 16.6 percent to 57,815 million in its Asia region.
Cigarette shipments of Marlboro were down by 1.8 percent to 68,830 million, while those of L&M where down by 4.8 percent to 23,369 million. Cigarette shipments of Chesterfield rose by 17.7 percent to 13,652 million; those of Parliament fell by 6.2 percent to 11,169 million; those of Bond Street fell by 9.5 percent to 10,278 million; those of Philip Morris increased by 42.4 percent to 12,688 million; and those of Lark fell by 24.5 percent to 5,688 million.
The 2017 second-quarter declines were offset to some extent by an increase in sales of heated tobacco units from 1,157 million during the second quarter of 2016 to 6,350 during the second quarter of 2017. Sales of heated tobacco units were increased in all regions: in the EU from 31 million to 392 million; in the EEMA from eight million to 229 million; in the Asia region from 1,118 million to 5,726 million; and in the Latin America and Canada region from zero to three million.
Taken together, cigarette and heated tobacco unit volume during the second quarter, at 199,890 million, was down by 5.0 percent on that of the second quarter of 2016, 210,446 million.
PMI reported that its total shipment volume of cigarettes and heated tobacco units during the six months to the end of June, at 377,877 million, was down by 7.1 percent on that of the six months to the end of June 2016, 406,940 million. The decline, excluding net estimated inventory movements, was put at 6.3 percent. It was said to have been principally due to the company’s performance in Asia, notably in Indonesia, but also in Pakistan and the Philippines, reflecting ongoing declines of primarily low-margin cigarette volumes; and due to its performance in the EEMA.
Meanwhile, PMI’s cigarette volume during the six months to the end of June, at 367,092 million, was down by 9.4 percent on that of the six months to the end of June 2016, 405,330 million. This fall was said to have been due to: its performance in the EU, principally in Italy and Spain, partly offset by that in Poland; in the EEMA region, reflecting declines across the region, notably in Russia and Ukraine; in the Asia region, principally in Indonesia, Japan, Pakistan and the Philippines; and in the Latin America & Canada region, principally in Argentina, Brazil and Canada. However, the decline in cigarette shipment volume was partly offset by a higher heated tobacco unit shipment volume up from 1.6 billion units during the first six months of 2016 to 10.8 billion units during the first six month of this year, driven by its performance in Japan.
Reported diluted earnings per share during the second quarter, at $1.14, were down by 0.9 percent on those of the second quarter of 2016, $1.15, while adjusted dilute earnings per share, at $1.14, were down by 0.9 percent.
Reported net revenues were up by 1.5 percent to $19.3 billion while net revenues, excluding excise taxes, of $6.9 billion, were up by 4.0 percent.
“Our quarterly results were robust with, as expected, sequential improvement in our volume performance, as well as strong currency-neutral net revenue growth of seven percent versus last year,” said CEO André Calantzopoulos.
“IQOS, our flagship smoke-free alternative, continues to perform exceptionally well, supported by further recent successful market launches, notably in Korea. In the quarter, shipments of Marlboro HeatSticks represented over 40 percent of our total shipments in Japan, where we recorded a national share of 10 percent.
“To date, more than 2.9 million adult consumers have already stopped smoking and switched to IQOS.”
July 21, 2017
JT on sustainability
The JT Group today published its 2016 Sustainability Report, which is said to highlight the key contribution of Japan Tobacco International, its international tobacco business, in achieving the group’s sustainability objectives.
‘The report is compiled in accordance with the “Core” Level of the GRI [Global Reporting Initiative] G4 Sustainability Reporting Guidelines, showing the JT Group’s commitment to being transparent in its sustainability performance,’ according to a note posted on the JTI website.
JTI said that as part of its sustainability program it had brought 9,742 more children into schools in tobacco growing countries. ‘This is part of the company’s commitment to building sustainable economies in tobacco growing communities where we directly and indirectly purchase tobacco, through dedicated programs improving their economic, social and environmental conditions,’ the note said.
In addition, JTI said, it had deployed more than 300 community investment programs in more than 60 countries. ‘JTI’s programs vary from the support to women in creating micro-enterprises in South Sudan to providing access to art for disabled adults in Italy,’ it said. ‘Many of the company’s programs involve the active participation of employees. In the United Kingdom, JTI continues to be one of only 34 holders of the CommunityMark for excellence in community investment.’
And the company said it had been recognized as a Global Top Employer for the third consecutive year, ‘a testimony of the company’s consistent high-quality work environment and commitment to providing exceptional development opportunities to employees worldwide’.
“Over the past year, we have made significant progress in delivering on our commitments to promoting sustainability both for the wider society and for the whole Group”, says Maarten Bevers, JTI’s corporate social responsibility vice president.
“We set ourselves high standards and we are honored that our work is being recognized in various areas. Our long-term approach and determination to uphold rigorous business practices – from our support to tobacco growing communities to the work environment we offer our employees – is reflected in this report.”
JTI said that the challenges it had tackled ranged from the elimination of child labor to respecting workers’ rights, maintaining adequate health and safety conditions, and providing access to water and sanitation, and reforestation.
‘For the first time in 2016, the JT Group was recognized as one of the world’s best climate change reporters by being included on the CDP’s Climate A List, the JTI note said. ‘It was also selected as a member of the Dow Jones Sustainability Asia/Pacific Index for the third consecutive year.’
“As a global business, we have a responsibility to operate and manage our resources sustainably,” said Bevers. “We do this with the aim to deliver value to the JT Group’s wide range of stakeholders – consumers, shareholders, employees and the wider society, including the communities in which we operate.”
May 26, 2017