Philip Morris International Inc. Quarterly Report for Q3 Ended Sep 30, 2013

Summary

Philip Morris International (PM) reported its third-quarter and nine-month results for 2013, showcasing a mixed financial performance. For the nine months ended September 30, 2013, net revenues increased by 3.4% to $59.6 billion, while net earnings attributable to PMI decreased slightly by 1.7% to $6.6 billion, resulting in diluted EPS of $4.02, up 2.6% year-over-year. The company faced challenges including unfavorable currency movements, which impacted net revenues by $694 million, and higher manufacturing and marketing costs. Despite these headwinds, strategic price increases and disciplined cost management helped mitigate some of the negative impacts. For the three months ended September 30, 2013, net revenues rose 5.3% to $20.6 billion, with net earnings attributable to PMI increasing 5.1% to $2.3 billion, leading to a diluted EPS of $1.44, a 9.1% increase. The company continued its share repurchase program, returning significant capital to shareholders through dividends and buybacks, signaling confidence in its financial position and future prospects. Management highlighted ongoing efforts in developing reduced-risk products as a key strategic priority.

Key Highlights

• 1Net revenues for the nine months ended September 30, 2013, grew 3.4% to $59.6 billion, while net revenues for the third quarter increased 5.3% to $20.6 billion.
• 2Diluted earnings per share (EPS) for the nine months were $4.02, up 2.6% from the prior year. For the third quarter, diluted EPS was $1.44, up 9.1%.
• 3The company repurchased $4.5 billion of its common stock in the first nine months of 2013 and announced a $6.0 billion share repurchase target for the full year.
• 4Dividends paid increased to $4.2 billion for the first nine months of 2013, reflecting a higher quarterly dividend rate.
• 5Negative currency impacts affected net revenues, decreasing them by $694 million for the nine months and $109 million for the quarter.
• 6The company continues to invest in developing reduced-risk products, with capital expenditures planned for new factories in Europe.
• 7Goodwill decreased by $723 million primarily due to currency movements, while other intangible assets also saw a decrease due to currency impacts.

Frequently Asked Questions