PMI Q1 2023 Financial Results: 3.5% Revenue Growth, IQOS User Base Increases

On April 20th, Philip Morris International (PMI) released its Q1 2023 earnings report. The report showed a net revenue of $8 billion, which represents a 3.5% increase from the same quarter in the previous year. The net revenue from smoke-free products grew by 14.5% to $2.8 billion. PMI's operating profit for the quarter was $2.7 billion, representing a decrease of 17.2% compared to the same period last year.

First quarter highlights of 2023 | Image source: PMI

The user base of new tobacco products continues to grow.

Jacek Olczak, the CEO of PMI, has stated that the acquisition and integration of Swedish Match has accelerated the company's transformation into a majority non-combustible business.

At the same time, the total number of IQOS users at PMI is also showing positive growth. According to their Q1 results, approximately 25.8 million users (72%) have switched to IQOS and stopped smoking.

The ILUMNA product line has almost 10 million users and is set to launch in the South Korean and Italian markets. Additionally, an IQOS Club will be launched in Indonesia. It is currently known that IQOS HTU is the top nicotine brand in Italy and Greece.

The Swedish match company, PMI, has reported its Q1 quarterly oral product shipment data.

Swedish matchstick business experiences high growth in the United States, as shown in the first quarter of 2023 with sales of 73.2 million cans (an increase of 46.7% compared to the previous year). In the Scandinavian Peninsula (Northern Europe), they sold 6.6 million cans, and 1 million cans in other areas.

The capital market has experienced a downturn.

PMI stock price | Image source: Barrons

In a statement, Altria Group Inc announced that their business had performed strongly in the first quarter, with adjusted diluted earnings per share at $1.38, exceeding their expectations. However, analysts surveyed by FactSet, a US financial data and software company, had predicted earnings per share of $1.34 and a net revenue of $8.1 billion. Meanwhile, PMI announced a net revenue of $8 billion, falling short of FactSet's market expectations. Following the release of their financial results, Altria's stock dropped 4.73% to $96.71 in trading on the New York Stock Exchange.

Further reading:

In the Korean market, the PMI's operating profit grew by 163%, while BAT decreased by 12%.

The PMI comprehensive report for 2022 states that the net revenue from smoke-free products accounts for 32.1%, with plans to become a smoke-free company by 2025.

References:

1. PMI report