Philip Morris Reports Higher Revenue but Lower Profit
Philip Morris International (PMI) reported operating revenue of US$11.69 billion in 2020, up 10.8% from 2019. Full-year net revenue fell 3.7% to US$28.69 billion. PMI sold 628.52 billion cigarettes in 2020, down 11% from 706.71 billion in 2019. The compan
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Philip Morris International (PMI) reported that its revenue for 2020 was $11.69 billion, an increase of 10.8% from 2019. However, net income for the year fell by 3.7% to $28.69 billion.<\/span><\/div>
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PMI sold 628.52 billion cigarettes in 2020, an 11.1% decrease from 706.71 billion in 2019. The company's heated tobacco (HNB) shipments grew by 27.6% to 76.11 billion in 2020. The total volume of cigarettes and HNB was 704.63 billion, down 8.1% from the previous year. Sales of PMI's flagship Marlboro brand fell by 11.3% to 233.16 billion cigarettes.<\/span><\/div>
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André said: “Despite the unprecedented impact of the pandemic, PMI demonstrated strong business performance in 2020, with adjusted diluted EPS (earnings per share) naturally growing by 7.0%, thanks to better-than-expected performance in the fourth quarter.” CEO Calantzopoulos stated in a press release.<\/span><\/div>
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“IQOS continued to achieve significant growth in 2020, driving our total user base as well as HTU shipments and market sales significantly higher. In the fourth quarter, we reported record HTU market share in key IQOS regions.”<\/span><\/div>
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“We enter 2021 with good momentum, although there are still certain headwinds, particularly related to duty-free, Indonesia, and the ongoing impact of the pandemic. For the year, we expect a significant recovery, with net revenue projected to grow in the low single digits due to the continued contribution of IQOS, and further efforts on cost efficiency are expected to accelerate the projected adjusted diluted EPS growth to 9% to 11% on a like-for-like basis.”<\/span><\/div>
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PMI stated that it has ample opportunities to secure inputs for its products and is not facing any significant business continuity issues with key suppliers. All of PMI's cigarette and heated tobacco manufacturing facilities worldwide are operational, and COVID-related restrictions have not significantly impacted the availability of PMI products to its customers and adult consumers.<\/span><\/div>
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