PMI sees growth in all Next-Gen Product Catergories According Annual Report

Ellesmere Zhu

Philip Morris International Inc. (NYSE: PM) hosted a live audio webcast on Thursday, February 9, 2023, at 9:00 a.m. ET, to discuss its 2022 Q4 and Full-Year results. 

During the webcast, Jacek Olczak, Chief Executive Officer, and Emmanuel Babeau, Chief Financial Officer, discussed PMI’s 2022 results and 2023 outlook, and answer questions from the investment community and news media. 

Full-Year 

• Net revenues from smoke-free products accounted for 32.1% of total net revenues, or 31.3% excluding Russia and Ukraine. Following the acquisition of Swedish Match, PMI defines “smoke-free products” to include all Swedish Match products other than Swedish Match’s combustible tobacco products, in addition to PMI's heat-not-burn, e-vapor, oral nicotine, and wellness and healthcare products. 

• Market share for heated tobacco units (HTUs) in IQOS markets up by 1.1 points to 8.0%, or by 1.4 points to 7.9% excluding Russia and Ukraine 

• Increased regular quarterly dividend by 1.6% to $1.27 per share, or an annualized rate of $5.08 per share Fourth-Quarter 

• Net revenues from smoke-free products accounted for 36.0% of total net revenues, or 35.6% excluding Russia and Ukraine 

• Market share for HTUs in IQOS markets up by 1.4 points to 8.5%, or up by 1.8 points to 8.5% excluding Russia and Ukraine 

• Total IQOS users at quarter-end estimated at approximately 24.9 million, of which approximately 17.8 million had switched to IQOS and stopped smoking (approximately 20.3 million and 14.2 million, respectively, excluding Russia and Ukraine)

CEO Speech

"Despite the challenging operating environment in 2022, due to the war in Ukraine, as well as supply-chain and global inflationary pressures, we delivered very strong full-year adjusted results led by the continued growth of IQOS and a robust performance in the combustible tobacco category," said Jacek Olczak, Chief Executive Officer. 

"We are well on our way to becoming a majority smoke-free company, with smoke-free products accounting for almost one-third of our total net revenues for the year. With the acquisition of Swedish Match and the agreement to take full control of IQOS in the U.S. in April 2024, we achieved two important milestones in our smoke-free transformation in 2022 and are well positioned to accelerate this journey." 

"We enter 2023 as a truly global smoke-free champion, with two of the industry's leading smoke-free brands, IQOS and ZYN, and continued innovation across our broader smoke-free product portfolio. For the year, we forecast organic top-line growth of 7% to 8.5% and currency-neutral adjusted diluted EPS growth of 7% to 9%, despite inflationary pressures and transitory impacts related to ILUMA deployment." 

"For Swedish Match, we expect continued strong growth from the business in 2023, following a very strong finish to the year, led by ZYN in the U.S." PMHH (PMI's Holland Holdings) is now the owner of 94.81% of the company's shares.

For more information, please check out the Earning Release.