Philip Morris Stock Price, News & Analysis

Philip Morris International Inc. (NYSE: PM) revises its 2021 full-year reported diluted EPS forecast to $5.77 to $5.82, reflecting a growth of 13% to 14% when adjusted for currency. For Q3, reported diluted EPS grew by 4.7% to $1.55, with adjusted EPS up by 11.3% to $1.58. Heated tobacco unit shipments rose by 23.8%, contributing to a significant increase in smoke-free product revenues, which now represent 28.6% of total revenues. The company also raised its quarterly dividend by 4.2% and plans continued investment despite ongoing device supply challenges due to semiconductor shortages.

Philip Morris International (NYSE: PM) will hold a live audio webcast on October 19, 2021, at 9:00 a.m. ET, to discuss its 2021 Third-Quarter results, released at 7:00 a.m. ET. CFO Emmanuel Babeau will present the results and answer questions. The webcast is accessible via www.pmi.com/2021Q3earnings and the Investor Relations Mobile Application. An archived copy will be available until November 17, 2021. PMI aims to replace cigarettes with smoke-free products, having approximately 14.7 million adult users of its IQOS devices worldwide.

Philip Morris International (PM) announced on September 29, 2021, the establishment of a $2.5 billion revolving credit facility, expiring on September 29, 2026, as part of its Business Transformation-Linked Financing Framework. This facility replaces a previous $3.5 billion credit line. Pricing may adjust based on progress in business transformation metrics related to smoke-free products. The company aims to accelerate its transition away from traditional cigarettes, with over 14.7 million adults globally adopting IQOS products.

Philip Morris International (PM) released a survey revealing that misinformation about smoke-free products hinders progress towards a smoke-free future. Conducted by Povaddo across 26 countries, the survey indicates that 79% of respondents believe adult smokers should have accurate information about smoke-free alternatives. Despite this demand, nearly 50% of adults incorrectly perceive e-cigarettes as equally harmful as traditional cigarettes. The findings highlight the need for better education on smoke-free options, as 91% of smokers who switched cited accurate information as crucial in their decision.

Philip Morris International CEO Jacek Olczak spoke at the 2021 Concordia Annual Summit, emphasizing the lessons learned from COVID-19 and advocating for innovative partnerships to tackle global issues. He highlighted the challenge of transitioning from traditional tobacco products to scientifically-backed smoke-free alternatives, underscoring the resistance from certain anti-tobacco groups. Olczak noted the significant potential for harm reduction, particularly citing the decline in cigarette use in Japan due to heated tobacco products. PMI aims to transform the tobacco industry, targeting a smoke-free future.

PMI has successfully acquired 74.77% of Vectura shares, surpassing the required 50% threshold for an unconditional offer. This acquisition, part of PMI's strategy to advance its Beyond Nicotine ambitions, aims to generate at least $1 billion from new product lines by 2025. The partnership will enhance Vectura’s development in inhaled therapeutics, leveraging PMI’s substantial investments of $8.1 billion since 2008 in smoke-free innovations. With its extensive pipeline of inhaled products, Vectura is set to play a pivotal role in PMI's transformation into adjacent health sectors.

Philip Morris International (PM) has completed its acquisition of Fertin Pharma for DKK 5.1 billion (approximately USD 820 million). This strategic move aims to enhance PM's portfolio of smoke-free products and expand into self-care wellness markets. Fertin Pharma, with its 850+ employees and expertise in oral delivery systems, is expected to significantly contribute to PM's 2025 objectives of generating over 50% of revenues from smoke-free products. The acquisition's impact on PM's full-year 2021 adjusted EPS is expected to be immaterial.

The Board of Directors of Philip Morris International (NYSE: PM) has increased the quarterly dividend by 4.2% to an annualized rate of $5.00 per share. The new dividend of $1.25 per share, up from $1.20, will be payable on October 14, 2021, to shareholders of record as of September 29, 2021, with an ex-dividend date of September 28, 2021. This adjustment reflects PMI's commitment to returning value to shareholders while continuing its transformation towards smoke-free products.

Philip Morris International (NYSE: PM) has reaffirmed its 2021 full-year diluted EPS forecast, expecting a range between $5.76 and $5.86, amid an organic growth of 12% to 14%. The company anticipates being toward the upper end of this forecast range, bolstered by strong demand for its IQOS product line. However, it also faces challenges from a global semiconductor shortage impacting device supplies. The ongoing shift to smoke-free products continues, with approximately 14.7 million users switching to IQOS globally.