Summary
Philip Morris International Inc. (PM) reported its annual results for the fiscal year ended December 31, 2010, in its Form 10-K filed on February 25, 2011. The company, a leading global tobacco products manufacturer operating outside the United States, highlighted a 4.1% increase in total cigarette shipments to 899.9 billion units, reaching a market share of approximately 16.0% internationally (excluding China). This growth was driven by strong performance in key markets and strategic acquisitions, including the combination of its Philippine operations with Fortune Tobacco Corporation and the acquisition of Swedish Match South Africa. The company also emphasized its extensive brand portfolio, led by Marlboro, and its diversified geographic presence across four reporting segments: European Union, Eastern Europe, Middle East & Africa (EEMA), Asia, and Latin America & Canada. Despite a generally challenging regulatory environment and ongoing litigation, PM demonstrated resilience in its market position and continued to invest in brand building and operational efficiencies. The report indicates a focus on developing potentially reduced-risk tobacco products and managing significant risks associated with tax increases, evolving regulations, currency fluctuations, and competitive pressures. The company maintained a strong liquidity position, supported by its financial performance and share repurchase programs, underscoring its commitment to shareholder value while navigating the complexities of the global tobacco industry.
Financial Highlights
56 data points| Revenue | $67.71B |
| Cost of Revenue | $9.71B |
| Gross Profit | $17.50B |
| R&D Expenses | $391.00M |
| Operating Income | $11.20B |
| Interest Expense | $974.00M |
| Net Income | $7.26B |
| EPS (Basic) | $3.93 |
| EPS (Diluted) | $3.92 |
| Shares Outstanding (Basic) | 1.84B |
| Shares Outstanding (Diluted) | 1.84B |
Key Highlights
- 1Total cigarette shipments increased by 4.1% to 899.9 billion units in 2010.
- 2Philip Morris International maintained a strong international market share of approximately 16.0% (excluding China).
- 3Strategic business developments included the combination of Philippine operations and the acquisition of Swedish Match South Africa.
- 4The company operates across four key geographic segments: EU, EEMA, Asia, and Latin America & Canada, with EU and EEMA being the largest contributors to operating income.
- 5Marlboro remains the leading international cigarette brand, accounting for approximately 33% of total shipment volume.
- 6The company is actively engaged in research and development for potentially reduced-risk tobacco products.
- 7Philip Morris International had a robust share repurchase program in place, with $9.05 billion remaining authorized as of December 31, 2010.