Philip Morris International Reports $37.9 Billion in Net Revenues for 2024

Philip Morris International Inc. (PMI) reported net revenues of $37.9 billion for the year ended December 31, 2024, a 7.7% increase compared to 2023. This increase, excluding currency and acquisition impacts, was 10.1%, driven by higher combustible tobacco pricing and increased smoke-free product volume, partially offset by unfavorable cigarette mix. The company's diluted earnings per share (EPS) for 2024 was $4.52, a 10% decrease from 2023, primarily due to a $2.3 billion non-cash impairment charge related to its Rothmans, Benson & Hedges equity investment and a higher effective tax rate. These decreases were partially offset by higher operating income and increased income from equity investments.

Significant changes compared to the previous year included the January 2024 update to segment reporting, incorporating Swedish Match AB results into existing geographical segments. The company also completed the sale of Vectura Group Ltd. on December 31, 2024, resulting in a pre-tax loss of $199 million. Furthermore, PMI ended its commercial relationship with Altria Group, Inc. for IQOS in the U.S. on April 30, 2024, assuming full commercialization rights. The company's total shipment volume, including cigarettes and heated tobacco units, increased by 2.5% in 2024 to 756.6 billion units.

Strategic developments included the November 2022 acquisition of Swedish Match AB, a leader in oral nicotine delivery, and the ongoing expansion of its smoke-free product portfolio. As of December 31, 2024, PMI's smoke-free products were available in 95 markets, with nicotine pouches available in 37 markets. The company also reported a continued focus on its Wellness and Healthcare segment, aiming to develop and commercialize products beyond the tobacco and nicotine sector. The company's total employee count was approximately 83,100 as of December 31, 2024.

Key operational developments included a 2.5% increase in total shipment volume, with heated tobacco unit shipments up 11.6% and cigarette shipments up 0.6%. PMI's total international market share (excluding China and the U.S.) was 28.7%, with a cigarette market share of 23.5% and a heated tobacco unit market share of 5.2%. The company holds at least a 15% market share in approximately 100 markets. Oral smoke-free product shipment volume increased by 27.8%, primarily driven by nicotine pouches. The company also noted a continued decline in cigarette consumption in many markets due to factors including increased taxes and pricing, governmental actions, and health concerns.

PMI expects total cigarette and smoke-free product shipment volume growth of up to 2% in 2025, driven by a projected 12% to 14% increase in smoke-free product volume. The company anticipates nicotine pouch shipments in the U.S. to reach 780 to 820 million cans in 2025. The company also anticipates a moderate inflationary increase in 2025 and expects net cash provided by operating activities of around $11 billion, subject to year-end working capital requirements. The company's outlook also acknowledges various risks, including regulatory changes, competition, and the impact of the war in Ukraine.