Summary
Philip Morris International Inc. (PM) reported its second-quarter 2017 financial results, showing a slight increase in net revenues to $19.3 billion, up from $19.0 billion in the prior year's quarter, and a net earnings attributable to PMI of $1.8 billion, a marginal decrease from $1.8 billion. Diluted EPS for the quarter was $1.14, a slight decrease from $1.15 in the second quarter of 2016. For the first six months of 2017, net revenues were $35.9 billion, largely flat year-over-year, with net earnings attributable to PMI increasing to $3.4 billion from $3.3 billion. Diluted EPS for the six-month period rose to $2.17 from $2.13. The company experienced an unfavorable currency impact, particularly from the strengthening U.S. dollar, which offset some of the gains from price increases across various segments. The company's strategic focus on Reduced-Risk Products (RRPs), particularly the IQOS heated tobacco product, continues to be a significant growth driver, with substantial increases in RRP net revenues, largely from Japan. Despite an overall decline in cigarette shipment volumes, particularly in Asia and EEMA, the growth in heated tobacco units partially compensated for the volume decrease. The company reaffirmed its full-year 2017 diluted EPS forecast, anticipating a range of $4.78 to $4.93, excluding currency impacts.
Financial Highlights
50 data points| Revenue | $6.92B |
| Cost of Revenue | $2.52B |
| Gross Profit | $4.40B |
| Operating Income | $2.74B |
| Net Income | $1.78B |
| EPS (Basic) | $1.14 |
| EPS (Diluted) | $1.14 |
| Shares Outstanding (Basic) | 1.55B |
| Shares Outstanding (Diluted) | 1.55B |
Key Highlights
- 1Net revenues for the second quarter of 2017 increased slightly to $19.3 billion, while net earnings attributable to PMI were $1.8 billion, and diluted EPS was $1.14.
- 2For the first six months of 2017, net revenues were $35.9 billion, and net earnings attributable to PMI increased to $3.4 billion, with diluted EPS at $2.17.
- 3Unfavorable currency movements, driven by a stronger U.S. dollar, negatively impacted reported revenues and profitability.
- 4Reduced-Risk Products (RRPs), particularly IQOS heated tobacco units, showed significant growth, contributing substantially to net revenues, especially in Japan.
- 5Total cigarette shipment volumes declined across most segments, with notable decreases in Asia and EEMA, although this was partially offset by the growth in heated tobacco units.
- 6The company reaffirmed its full-year 2017 diluted EPS forecast, projecting a range of $4.78 to $4.93, indicating anticipated growth.
- 7The company continued to invest in RRP capacity expansion, with capital expenditures expected to be approximately $1.6 billion for the full year 2017.