Summary
Philip Morris International Inc. (PMI) held its 2015 Annual Meeting of Shareholders on May 5, 2015. The company highlighted strong business fundamentals and positive momentum, particularly in the lead-up to the year. A key focus was the progress and prospects of its Reduced-Risk Product (RRP) portfolio, specifically the launch and planned expansion of iQOS. Management reaffirmed the full-year 2015 reported diluted EPS forecast, while also outlining the investment required for iQOS deployment, which is expected to be weighted towards the latter half of the year. The company emphasized its commitment to returning cash to shareholders through an attractive dividend and yield, supported by prudent cash flow management.
Key Highlights
- 1PMI held its 2015 Annual Meeting of Shareholders, with presentations from Chairman Louis C. Camilleri and CEO André Calantzopoulos.
- 2The company reaffirmed its 2015 full-year reported diluted EPS forecast in the range of $4.32 to $4.42.
- 3Excluding currency impacts, reported diluted EPS are projected to increase by 9% to 11% versus adjusted diluted EPS of $5.02 in 2014.
- 4Significant investment is planned for the deployment of the Reduced-Risk Product, iQOS, with national expansion in Japan and Italy, and pilot/national launches in additional markets later in 2015.
- 5CEO André Calantzopoulos stated that iQOS is performing above expectations, driving excitement for its expansion.
- 6The company forecasts 2015 free cash flow to be broadly in line with the previous year, despite currency headwinds, to support dividends and business investment.
- 7Matters discussed at the meeting included director nominations, auditor ratification, executive compensation approval, and two shareholder proposals.