Summary
Philip Morris International (PM) reported its second-quarter 2015 results, highlighting a 1.1% increase in diluted EPS to $1.21 for the three months ended June 30, 2015, compared to $1.17 in the prior year. For the six months ended June 30, 2015, diluted EPS grew 0.9% to $2.37 from $2.35 in the same period of 2014. This growth was primarily driven by operational improvements, including pricing strategies and cost management, partially offset by unfavorable currency movements, which had a significant impact on reported revenues and profitability. The company reaffirmed its 2015 full-year diluted EPS forecast, anticipating a range of $4.32 to $4.42, reflecting a projected growth of 9% to 11% on an adjusted, currency-neutral basis compared to 2014. The company's balance sheet shows a decrease in total assets to $32.7 billion as of June 30, 2015, from $35.2 billion at the end of 2014, primarily due to a reduction in finished product inventory and goodwill. Total liabilities also decreased to $44.5 billion from $46.4 billion. The company's commitment to returning capital to shareholders is evident through dividends paid, which totaled $3.1 billion for the first six months of 2015, an increase from $3.0 billion in the prior year, though share repurchases were paused for 2015.
Financial Highlights
51 data pointsKey Highlights
- 1Diluted EPS increased by 3.4% to $1.21 for the three months ended June 30, 2015, and by 0.9% to $2.37 for the six months ended June 30, 2015.
- 2Net revenues decreased by 10.9% to $18.8 billion for the three months and by 7.0% to $36.1 billion for the six months ended June 30, 2015, largely due to unfavorable currency impacts and volume/mix.
- 3Operating income for the three months ended June 30, 2015, increased slightly by 0.6% to $2.9 billion, while for the six months it decreased by 1.1% to $5.8 billion.
- 4Significant asset impairment and exit costs of $512 million (pre-tax) were recorded in the first six months of 2014 related to factory closures in the Netherlands and Australia.
- 5The company reaffirmed its 2015 full-year diluted EPS forecast of $4.32 to $4.42, representing an expected currency-neutral growth of 9% to 11% over adjusted 2014 EPS.
- 6Total debt remained significant, at approximately $29.2 billion as of June 30, 2015.
- 7Dividends paid increased to $3.1 billion for the first six months of 2015, reflecting a higher dividend rate, while share repurchases were not planned for 2015.