Summary
Philip Morris International Inc. (PM) reported strong financial performance for the second quarter and first half of 2018. Net revenues increased by 12.6% for the six-month period and 11.7% for the quarter, driven by favorable pricing and growth in reduced-risk products (RRPs), particularly IQOS. Diluted Earnings Per Share (EPS) saw a significant increase, up 11.1% for the six months and 23.7% for the quarter, boosted by operational improvements, favorable currency movements, and a lower effective tax rate resulting from the Tax Cuts and Jobs Act. The company also reiterated its full-year EPS forecast, signaling continued expected growth. The company continues its strategic shift towards smoke-free products, with RRPs showing substantial revenue growth.
Financial Highlights
48 data points| Revenue | $7.73B |
| Cost of Revenue | $2.74B |
| Gross Profit | $4.98B |
| Operating Income | $3.09B |
| Net Income | $2.20B |
| EPS (Basic) | $1.41 |
| EPS (Diluted) | $1.41 |
| Shares Outstanding (Basic) | 1.55B |
| Shares Outstanding (Diluted) | 1.55B |
Key Highlights
- 1Net revenues increased by 12.6% for the first six months of 2018 and 11.7% for the second quarter, driven by strong pricing and RRP growth.
- 2Diluted Earnings Per Share (EPS) increased by 11.1% for the first six months and 23.7% for the second quarter.
- 3Reduced-Risk Products (RRPs) revenue more than doubled, reaching $2.15 billion for the six-month period, indicating strong adoption of IQOS and related products.
- 4Operating income saw a healthy increase of 7.1% for the six months and 13.0% for the quarter, supported by pricing and operational efficiencies.
- 5The effective tax rate decreased significantly due to the Tax Cuts and Jobs Act, positively impacting EPS.
- 6The company reaffirmed its full-year 2018 diluted EPS forecast, projecting growth of 29% to 32% at prevailing exchange rates.
- 7PMI is strategically transitioning towards a smoke-free future, with RRPs playing an increasingly important role in revenue and growth.