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Philip Morris International Inc on Thursday reported lower operating income in the first quarter compared to a year before and now expects 2022 earnings per share below 2021 levels.
In the first quarter of 2022, the cigarette maker reported a 4.2% decline in operating income to $3.30 billion from $3.44 billion.
Diluted earning per share were also down, falling 3.2% to $1.50 from $1.55 the previous year.
Revenue totalled $7.75 billion in the quarter, up 2.1% from $7.59 billion a year prior. Smoke-free products accounted for 31% of total net revenues.
PMI said revenue growth was driven by the underlying strength of the IQOS heated tobacco brnd, the ongoing recovery of the combustible business, and some positive timing impacts.
During the quarter, Russia and Ukraine accounted for around 6% of PMI's total revenue. The company had announced the temporary suspension of its operations in Ukraine on February 25 and its decision to scale down manufacturing in Russia on March 24.
PMI shipped 148.2 million units of cigarettes in the first quarter, up 1.9% from 145.5 million the previous year. Its heated tobacco units surged 14% year-on-year to 24.8 million from 21.7 million.
The Connecticut, US-based firm now expects full-year EPS between $5.39 to $5.50. In 2021, EPS was US5.83 for the year.
Chief Executive Jacek Olczak said: ‘We expect to deliver robust top- and bottom-line growth this year on a pro forma adjusted basis, including full-year adjusted diluted EPS growth of 9% to 11%, excluding currency. This gives us confidence in achieving our 2021 to 2023 compound annual growth targets, on a pro forma basis, and our ambition to become a majority smoke-free company by 2025.’
Shares in PMI were up 0.1% at $103.16 on Thursday in the New York pre-market.
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