Philip Morris International (NYSE:PM) tracked higher in premarket trading on Tuesday after setting full-year guidance ahead of expectations. For Q2, one of the biggest pullouts from the earnings report was that the smoke-free business accounted for 38.1% of the company’s total revenue in comparison to 35.4% a year ago.
Revenue rose 5.6% year-over-year during the quarter to $8.47B, including an increase of 18.3% for the smoke-free business. Total shipment volume was up 2.8% from a year ago.
Adjusted operating income increased 34.2% during the quarter and was up 12.5% on an organic basis. EPS came in at $1.59 vs. $1.56 consensus and $1.62 a year ago.
Philip Morris’ (PM) total cigarette and HTU shipment volume increased by 2.5%, with increases across all regions except the Americas. PM’s total oral product shipment volume in cans increased by 23.5%, predominantly reflecting growth in nicotine pouches. Adjusted in-market sales for HTUs increased by 10.2%, including growth in Japan of 12.5% and Europe of 6.8%.
Total IQOS users at quarter-end were estimated at 30.8 million (up by 1.9 million versus December 2023), of which approximately 22.1 million had fully switched to IQOS and stopped smoking. The increase was broad-based, with notable gains in Japan following the launch of ILUMA i, as well as good progress in Europe (especially Greece, Hungary, Romania, Bulgaria, and Spain), South Korea, and low and middle income markets, notably Indonesia.
“The excellent momentum of our smoke-free business continued with an outstanding second-quarter and first-half performance, stated CEO Jacek Olczak. “The powerful combination of excellent underlying performance and proactive measures across all categories enabled our business to outperform once again, and we are on track for a strong 2024. As a result, we are raising our full-year guidance, despite currency headwinds,” he added.
Looking ahead, PM expects full-year adjusted EPS of $6.33 to $6.45 vs. $6.33 consensus and the prior forecast of $6.26 to $6.38.
Shares of Philip Morris International (PM) rose 2.04% in premarket trading on Tuesday to $109.41. Altria Group (MO) edged up 0.25% in the early session.
Source: Seeking Alpha
