Philip Morris International Reports Q1 2023 Results: IQOS Users Reach About 25.8 Million

According to foreign reports today, Philip Morris International (NYSE: PM) announced its Q1 2023 results today.

The report states that net revenue for Q1 2023 was $8 billion, an increase of 3.5% compared to the same period last year. Net revenue from smoke-free products grew by 14.5% to $2.8 billion. The company's operating income for the quarter was $2.7 billion, a decrease of 17.2% compared to Q1 2022.

PMI shipped 171.1 billion cigarettes and heated tobacco units in Q1 2023, a decline of 1.1%. The number of heated tobacco units increased by 10.4% to 27.4 billion. Driven by the acquisition of Swedish MATch, shipments of oral products rose to 173.3 million cans.

Reported net revenue grew by 9.6%.

Net revenue from combustible tobacco decreased by 1.5%; organic growth was 3.0% driven by pricing of 7.4%.

In the IQOS market, the market share of HTU increased by 0.9 percentage points to 9.0%.

As of the end of the quarter, the total number of IQOS users is estimated to be around 25.8 million (an increase of 900,000 compared to December 2022), of which approximately 18.5 million have switched to IQOS and quit smoking.

Shipments of ZYN nicotine pouches (NP) in the U.S. reached 73.2 million cans, a 46.7% increase compared to 49.9 million cans shipped in Q1 2022 by Swedish Match.

The regular quarterly dividend was announced at $1.27 per share, or an annualized rate of $5.08 per share.

"Our business performed strongly in the first quarter, with adjusted diluted earnings per share of $1.38, exceeding our expectations," said CEO Jacek Olczak.

"Based on the report, net revenue grew by 3.5%, with organic growth of 3.2%, reflecting accelerated pricing in combustible tobacco and strong potential growth in heated tobacco unit shipments before inventory changes impacted results."

"We continue to successfully integrate Swedish Match, which has brought impressive and growing results, accelerating our transition to a majority smoke-free company. ZYN's strong performance in the U.S. complements the positive momentum of IQOS, including the excellent traction of ILUMA across launch markets, solidifying our position as a true global smoke-free champion."

"The start of this year is encouraging, and we reaffirm our forecast for organic net revenue growth of 7% to 8.5% and adjusted diluted earnings per share growth of 7% to 9% for the full year 2023."