Following the announcement made on March 9, 2022, Philip Morris International Inc. (NYSE: PM) announced today the specific measures they have taken to temporarily halt investment plans and reduce their manufacturing business in Russia. PMI has taken the following actions:
Philip Morris International (PMI) has stopped offering some cigarette products in the market and reduced manufacturing activities accordingly. It has also halted marketing activities in the country and cancelled plans to launch all products, including its IQOS ILUMA flagship heated tobacco product in Russia by 2022. Plans to produce over 20 billion TEREA sticks (used for IQOS ILUMA) in Russia and invest $150 million have also been cancelled. Additionally, PMI's board of directors and senior executives are exploring options for an orderly exit from the Russian market due to the increasingly complex and rapidly changing regulatory and operational environment.
In the past four weeks, our main focus and all efforts have been to ensure the safety and security of our colleagues in Ukraine. We stand in solidarity with innocent men, women, and children who are suffering. "We employ over 3,200 people in Russia," said CEO Jacek Olczak. "We will continue to support them, including paying their salaries, and we will fulfill our legal obligations. Our priority will be to make decisions based on their safety and security.
As previously reported, Russia accounted for nearly 10% of PMI's total shipments in 2021, representing approximately 6% of the company's net income. PMI is set to release its Q1 2022 earnings announcement on April 21, 2022, which will include updated financial projections for the year.
Philip Morris International: Achieving a Smoke-Free Future
Philip Morris International (PMI) is a leading international tobacco company committed to achieving a smoke-free future and long-term development of its investment portfolio to include products beyond the tobacco and nicotine sectors. The company's current product portfolio primarily consists of cigarettes and smoke-free products, including non-combustible heated, vapor, and orally consumed nicotine products, sold in markets outside the United States. Since 2008, PMI has invested over $9 billion to develop, scientifically validate, and commercialize smoke-free products for adult smokers who would otherwise continue smoking, with the goal of completely phasing out cigarette sales. This includes establishing world-class scientific evaluation capabilities, particularly in pre-clinical systematic toxicology, clinical and behavioural research, and post-market studies. The United States Food and Drug Administration (FDA) has authorized PMI's IQOS platform 1 device and consumables for marketing as a modified risk tobacco product (MRTP), concluding that the exposure modifications are appropriate for promoting public health. As of December 31, 2021, PMI's smoke-free products are available in 71 markets, and PMI estimates that approximately 15.3 million adult smokers have switched to IQOS and quit smoking globally. With a strong foundation in life sciences and expertise, PMI announced in February 2021 its ambitious expansion into the healthcare and medical sector, offering innovative products and solutions to meet unmet patient and consumer needs.
Link to original article:
The Philip Morris International (PMI) has announced the specific steps it will take to reduce its business operations in the Russian Federation, as well as its intent to withdraw from the market.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
