Philip Morris International (PMI) reported strong first-quarter results for 2024, with top-line growth and significant margin expansion.
The company's smoke-free products, including IQOS and ZYN, continued to perform well, driving underlying volume growth, organic net revenue, and gross profit growth.
Despite geopolitical and economic tensions causing currency volatility, PMI is executing efficiently and effectively to deliver robust growth and value creation.
The CEO, Jacek Olczak, expressed confidence in the company's performance and raised the 2024 currency-neutral guidance.
The text highlights the success of the smoke-free business (SFB) and inhalable smoke-free products (SFP) for a company.
SFB accounted for 39% of the total net revenues and had a significant presence in the EA, AU & PMI DF region, where it accounted for almost two-thirds of revenue.
The SFB showed strong growth with a 21.1% increase in net revenues and a 31.8% increase in gross profit.
The SFP, specifically _IQOS_, continued to gain market share and was the second largest nicotine brand in markets where it was present, even holding the number one position in 11 markets.
The HTU adjusted in-market sales volume for SFP increased by an estimated 12.5%.
The European market share of IQOS Heat-Not-Burn tobacco products exceeded 10% for the first time, growing by 9.4% despite the impact of the EU flavor ban.
In Japan, IQOS market share increased by over 3 percentage points to over 29%, with growth of 13.3%.
The heat-not-burn category surpassed combustible cigarettes in Tokyo, highlighting IQOS's global potential.
To mark the 10-year anniversary of IQOS in Japan, a new innovative product, IQOS ILUMA i, was introduced with positive consumer feedback.
ORAL SFP2, which includes ZYN nicotine pouches, saw a 40.0% increase in shipment volume in cans and 35.8% in pouches or pouch equivalents, driven by growth in the US market.
The text reports an increase in the company's market share in the US to over 74% for the fourth consecutive quarter, a 1.3 percentage point rise from the previous quarter.
In the combustibles category, net revenues grew by 3.5% (up 3.7% organically), driven by strong pricing across markets.
The company's category share in combustibles also rose by 0.3 percentage points, with Marlboro contributing an additional 0.4 percentage points.
The company declared a regular quarterly dividend of $1.30 per share, equating to an annualized rate of $5.20 per share.