TLDR: Very strong figures from $PM (+1.84%) IQOS and ZYN continue to perform excellently and the global cigarette volume (USA excluded) is stabilizing.
I will add any further information as it comes in.
Smoke-free business (SFB):
- Quarterly shipments of smokeless products (HTU and oral products) exceeded 40 billion units for the first time.
- Full-year sales increased by 14.2 % (organically 16.7 %), gross profit by 18.7 % (organically 22.7 %).
- Smokeless products accounted for 40% of total sales and 42% of gross profit.
- The number of adult users rose to 38.6 million (+5.3 million compared to December 2023)
Smoke-free inhalable products (SFP):
- IQOS consolidated its position as the second largest nicotine brand and drove the growth of the heat-not-burn segment (over 75% of global market volume).
- In Japan, the market share of IQOS HTU increased by 3.1 percentage points to 30.6 %; the HTU segment exceeded 50 % market share in several regions.
- In Europe, IQOS HTU's market share increased to 10.6 %, with strong growth in countries such as Spain, Romania and Germany.
Vaping:
- VEEV is increasingly favored by legal poly users and is among the top 3 brands in 13 European markets (#1 in five markets, including Italy and the Czech Republic).
Oral
- annual shipments increased by 28 % (doses) and 25 % (pouches).
- Growth was driven by ZYN in the USA (+42 %) and international markets such as Pakistan and South Africa.
Combustibles:
- Annual sales increased by 4% (organically 5.9%), in the fourth quarter by 6% (organically 6.2%).
- Strong price adjustments led to gross profit growth of 10.7 %.
- Brands such as Marlboro achieved market share gains.
Although there is no detailed information on IQOS USA, here is an excerpt from the press release and transcript:
"the U.S. Food and Drug Administration has authorized the marketing of Swedish Match's General snus and ZYN nicotine pouches and versions of PMI's IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA."
"Turning now to the U.S., where our IQOS 3 'Be The First' campaign in Austin is
progressing well and we expect to commence direct sales of devices and HTUs in
Austin around the end of Q1. We are seeing high interest from consumers, with over
4,000 adult smokers on our waitlist."
Volume in bn units Q4
Total 193.1
Cigarettes 152.8 +1.1%
HTU 35.7 +5.1%
Oral 4.6 +22%
Revenue ($Bn) Q4
Total 9.7 +7.3% BEAT
Combustibles 5.8 +6%
SFB 3.9 +9.2%
SFB share of Rev = 40%
Gross profit ($Bn) Q4
Total 6.3 +12.5%
Combustibles 3.7 +10.7%
SFB 2.6 +15%
SFB share of Gross Profit= 42%
Operating Income ($Bn) Q4
Total 3.3 +12.8%
EPS Q4
Reported Diluted -0.38$
Adjusting Items $(1.93)
Adjusted Diluted 1.55$ +14% BEAT
Currency Impact $0.06
Adjusted Diluted ex fx 1.49$ +9.6%
Volume in bn units FY2024
Total 774 +2.9%
Cigarettes 616.8 +0.6%
HTU 139.7 +11.6%
Oral 17.4 +24.6%
Rev ($Bn) FY2024
Total 37.9 +7.7%
Combustibles 23.2 +4%
SFB 14.7 +14.2%
SFB share of Rev = 39%
Gross Profit ($Bn) FY2024
Total 24.5 +10.2%
Combustibles 14.8 +5.2%
SFB 2.6 9.7 +18%
SFB share of Gross Profit= 40%
Operating Income ($Bn) FY2024
Total 13.4 +16%
EPS FY2024
Reported Diluted $4.52 -10%
Adjusting Items $(2.05)
Adjusted Diluted $6.67 +9.3%
Currency Impact $(0.38)
Adjusted Diluted ex fx $6.95 +15.6%
Europe
Volume in bn units Q4 I FY 2024
Combustibles 38 -2.4% I 162 -1.8%
HTU 15 +6.2% I 53 +8.9%
Market Share % Q4 I FY2024
Combustibles 29.9 -30bps I 30 -30bps
HTU 10.8 +80bps I 10 +90bps
Volume in mln cans Q4 I FY2024
Nicotine pouches 13.6 +58% I 48.8 +40.2%
Snus 57.5 -5.9% I 236.4 +0.1%
Other 0.6 -20.1% I 3.4 -18.6%
Total 71.7 +1.7% I 288.9 +4.9%
Q4 in bn$
Revenue 4.05 +7.7%
Operating income 1.8 +11.4%
Adj. operating income margin 45.4% +50bps
FY2024 in bn$
Revenue 15.3 +7.9%
Operating income 6.9 +12.4%
Adj. operating income margin 46.2% +60bps
SSEA, CIS & MEA
Volume in bn units Q4 I FY2024
Combustibles 85.8 +3.4% I 344.8 +3.4%
HTU 8.4 +12.3% I 28.5 +14.8%
Q4 in bn$
Revenue 2.8 +5.9%
Operating income 0.8 +15.3%
Adj. operating income margin 28.2% +220bps
FY2024 in bn$
Revenue 11.2 +5.9%
Operating income 3.4 +9.3%
Adj. operating income margin 31% +10bps
EA, AU & DF
Volume in bn units Q4 I FY2024
Combustibles 11.4 +1.2% I 47.6 -6%
HTU 11.9 -0.1% I 56.8 +12.6%
Q4 in bn$
Revenue 1.4 +0.3%
Operating income 0.57 -0.3%
Adj. operating income margin 40.1% -20bps
FY2024 in bn$
Revenue 6.4 +3%
Operating income 2.8 +13.4%
Adj. operating income margin 45.1% +10bps
Americas
Volume in bn units Q4 I FY2024 excl. USA
Combustibles 17.1 -1.7% I 61.6 -2.6%
HTU 0.15 -25.7% I 622 +6.3%
Volume in mln cans Q4 I FY2024 incl. USA
Nicotine pouches 165.1 +42% I 581.4 +51%
Moist Snuff 32 +2.4% I 134.6 +0.6%
Snus 0.7 -9% I 2.9 -25.8%
Q4 in bn$
Revenue 1.26 +17.3%
Operating income 0.13 +100%
Adj. operating income margin 26.9% +149bps
FY2024 in bn$ (Loss)
Revenue 3.33 +8.8%
Operating income (391) +55%
Adj. operating income (120) +63.2%
Adj. operating income margin (36)% +710bps
Canada Lawsuit
Philip Morris International (PMI) has recognized an impairment charge of USD 2.3 billion on its subsidiary Rothmans, Benson & Hedges (RBH) due to legal developments in Canada. RBH has objected to a proposed settlement plan to resolve tobacco disputes worth CAD 32.5 billion. Since 2019, RBH-related results such as EPS and net debt have been excluded from PMI's financial reports. If the plan is approved and implemented, RBH is expected to remain deconsolidated, however, under certain conditions, future dividend payments could be made to PMI and increase its cash flow and adjusted EPS.
