Summary
Philip Morris International Inc. (PM) has filed its 2008 Form 10-K, reflecting its first full year as an independent, publicly traded company following its spin-off from Altria Group, Inc. on March 28, 2008. The company's business operates exclusively outside the United States, selling cigarettes and other tobacco products in approximately 160 countries. PM International holds leading market share positions in many of these regions, with its flagship brand, Marlboro, accounting for a significant portion of its sales volume. For the fiscal year ended December 31, 2008, PM International reported increased shipment volumes, driven by its strong brand portfolio and strategic market presence. The company also engaged in significant corporate activities, including the acquisition of Rothmans Inc. in Canada and increased ownership in its Mexican operations. The report details the company's operational structure across four geographic segments: European Union, Eastern Europe, Middle East & Africa, Asia, and Latin America & Canada. Investors should note the ongoing risks associated with the tobacco industry, including increased taxation, stringent regulatory environments, litigation, and currency fluctuations, all of which are discussed extensively.
Financial Highlights
56 data points| Revenue | $63.64B |
| Cost of Revenue | $9.33B |
| Gross Profit | $16.38B |
| R&D Expenses | $334.00M |
| Operating Income | $10.25B |
| Interest Expense | $528.00M |
| Net Income | $6.89B |
| EPS (Basic) | $3.32 |
| EPS (Diluted) | $3.31 |
| Shares Outstanding (Basic) | 2.07B |
| Shares Outstanding (Diluted) | 2.08B |
Key Highlights
- 1Philip Morris International Inc. (PM) completed its spin-off from Altria Group, Inc. on March 28, 2008, operating as an independent entity for the full fiscal year 2008.
- 2The company's operations are entirely outside the United States, with products sold in approximately 160 countries.
- 3Marlboro remains the world's best-selling international cigarette, representing approximately 36% of PM's total 2008 shipment volume.
- 4Total cigarette shipments increased by 2.5% in 2008 to 869.8 billion units.
- 5Acquisitions during 2008 included Rothmans Inc. in Canada for approximately $1.9 billion and an increased stake in its Mexican tobacco business.
- 6The company manages its global operations across four distinct geographic segments: EU, EEMA, Asia, and Latin America & Canada, with the EU region contributing the largest share of operating companies income (45.4%).
- 7PM International highlighted its ongoing research and development efforts focused on understanding tobacco-related diseases and developing potentially reduced-risk products.