Philip Morris Stock Price, News & Analysis

The FDA has renewed the modified risk tobacco product (MRTP) authorization for eight General snus products from Swedish Match, a Philip Morris International (PM) affiliate. This renewal allows Swedish Match to market these products as lower-risk alternatives to cigarettes. The authorization was based on 330 scientific studies, including epidemiological research from Sweden, which has one of the world's lowest smoking rates. The products can be marketed with claims that using General snus instead of cigarettes reduces the risk of various tobacco-related diseases. This marks a significant milestone as PMI affiliates have now secured 13 of the 16 MRTP authorizations granted by the FDA.

Philip Morris International (PMI) reported strong Q3 2024 results, raising its full-year guidance. Key highlights include:

- Reported Diluted EPS grew 49.2% to $1.97
- Adjusted Diluted EPS increased 14.4% to $1.91
- Smoke-free business accounted for 38% of total net revenues and 40% of gross profit
- IQOS HTU adjusted in-market sales volume up 14.8%
- ZYN nicotine pouch shipments in the U.S. grew 41.4% to 149.1 million cans
- Combustibles net revenues grew 5.2% (8.6% organically)

PMI raised its 2024 full-year guidance for reported diluted EPS to $6.20-$6.26 and adjusted diluted EPS to $6.45-$6.51. The company expects 14-15% growth in adjusted diluted EPS excluding currency impacts.

Philip Morris International (PMI) has been informed of a proposed plan to resolve tobacco product-related claims and litigation in Canada. The plan, filed by a court-appointed mediator, involves PMI's deconsolidated Canadian affiliate, Rothmans, Benson & Hedges Inc. (RBH), along with two other tobacco companies. Under the proposal, the companies would pay an aggregate settlement of CAD 32.5 billion (approximately USD 23.5 billion).

The settlement would be funded through upfront payments and annual contributions based on the companies' net income. If approved and implemented, the plan would release claims against RBH and its affiliates, including PMI, related to tobacco products. PMI CEO Jacek Olczak welcomed this step towards resolving long-pending litigation in Canada.

If RBH is reconsolidated, it is expected to be incremental to PMI's key financial metrics. The plan remains subject to further negotiation, court orders, voting by claimants, and court approval. Voting is proposed for December 2024, with a potential approval hearing in the first half of 2025.

Philip Morris International (PMI) (NYSE: PM) will host a live audio webcast on October 22, 2024, at 9:00 a.m. ET to discuss its 2024 third-quarter and first nine-months results. The results will be issued at approximately 7:00 a.m. ET the same day. The webcast, hosted by CFO Emmanuel Babeau, will be available at www.pmi.com/2024Q3earnings and through PMI's Investor Relations App.

PMI is a leading tobacco company transitioning towards a smoke-free future. As of June 30, 2024, PMI's smoke-free products were available in 90 markets, with an estimated 36.5 million adult users. Smoke-free business accounted for approximately 38% of PMI's total first-half 2024 net revenues. The company is also expanding into wellness and healthcare areas through its Vectura Fertin Pharma business.

Molex, parent company of Phillips Medisize, has announced an agreement to acquire Vectura Group from Philip Morris International (NYSE: PM). This acquisition aims to expand Phillips Medisize's drug delivery capabilities in inhalation. Vectura, based in Chippenham, UK, is a leader in inhalation drug device design and formulation.

The combination of Phillips Medisize and Vectura will enhance their ability to deliver a broader portfolio of inhalation combination drug devices and solutions to pharmaceutical customers. Vectura brings expertise in formulation and device development for various inhalation products, including dry powder inhalers, pressurized metered dose inhalers, and nasal and nebulizer products.

The acquisition is expected to close by the end of 2024, subject to regulatory approvals and other customary closing conditions.

Philip Morris International's (PMI) subsidiary, Vectura Fertin Pharma, has announced the sale of Vectura Group to Molex Asia Holdings for GBP 150 million upfront, with potential deferred payments of up to GBP 148 million. The deal includes master service agreements for developing inhaled therapeutics. Vectura will be operated by Phillips Medisize, a Molex company.

PMI CEO Jacek Olczak stated that while Vectura has been important in developing their inhaled therapeutics pipeline, opposition to PMI's transformation has impacted Vectura's scientific engagement and commercial relationships. The remaining Vectura Fertin Pharma units will continue under PMI, focusing on oral consumer health and inhaled prescription products.

Philip Morris International (NYSE: PM) has announced a 3.8% increase in its regular quarterly dividend to an annualized rate of $5.40 per share. The new quarterly dividend of $1.35 per share will be payable on October 10, 2024, to shareholders of record as of September 26, 2024. This move demonstrates PMI's commitment to delivering value to shareholders while pursuing its smoke-free future strategy.

PMI's current portfolio includes cigarettes and smoke-free products, with the company investing over $12.5 billion since 2008 to develop and commercialize innovative smoke-free alternatives. As of June 30, 2024, PMI's smoke-free products were available in 90 markets, with an estimated 36.5 million adult users globally. The smoke-free business accounted for approximately 38% of PMI's total first-half 2024 net revenues.

Philip Morris International (PMI) warns about high levels of illicit cigarette consumption in the European Union, with 35.2 billion illicit cigarettes consumed in 2023, accounting for 8.3% of total consumption. The KPMG report commissioned by PMI reveals that counterfeit cigarettes remain a major source of illicit consumption, with 12.7 billion cigarettes consumed. France leads as the country with the largest illicit consumption in Europe, with 16.8 billion illicit cigarettes and an estimated €7.3 billion in lost tax revenues.

PMI calls for a holistic approach to curb illicit trade, including law enforcement, awareness campaigns, and a predictable fiscal environment. The company emphasizes the need for innovative approaches to reduce smoking prevalence and advocates for smoke-free alternatives. PMI's survey across 14 European countries shows that 60% of adults believe their country has a problem with illicit tobacco products, and 77% agree that illicit trade robs governments of significant tax revenue.

Philip Morris International (PMI) reaffirms its 2024 full-year forecast at the Barclays Global Consumer Staples Conference. CEO Jacek Olczak will participate in a fireside chat, which will be webcast live. PMI maintains its projected reported diluted EPS of $5.89 to $6.01 and adjusted diluted EPS of $6.33 to $6.45, representing a currency-neutral growth of 11% to 13% compared to 2023. The forecast accounts for a total 2024 adjustment of $0.44 per share and an unfavorable currency impact of $0.34 per share. This projection is based on the same assumptions communicated in PMI's July 23, 2024 earnings release.