Philip Morris 1Q Profit Rises, Sees Pandemic Weighing on Full Year
April 21 2020 - 7:56AM
Dow Jones News
By Dave Sebastian
Philip Morris International Inc. said its profit and sales rose
for the latest quarter, but it withdrew its guidance for 2020 as it
faces the effect of the Covid-19 pandemic.
The tobacco company on Tuesday posted earnings of $1.83 billion,
or $1.17 a share, up from $1.35 billion, or 87 cents a share, in
the comparable quarter last year.
Adjusted earnings were $1.21 a share, ahead of the $1.13 a share
analysts had expected.
Sales rose 6%, to $7.15 billion. Analysts were looking for $6.84
billion.
The pandemic in its early stages had limited effect on the
company, but it would hurt the company's full-year results, Chief
Executive André Calantzopoulos said.
Mr. Calantzopoulos said the pandemic has caused reduced
duty-free sales, slower user acquisition for IQOS--which is
developed by Philip Morris and sold by Altria Group Inc.--and
delayed minimum-price enforcement in Indonesia.
"We also have to assume that, in certain markets, unemployment
and related reductions in disposable income will have a temporary
impact on market dynamics or the ability of certain small retailers
to operate," he said.
Shipment volume of cigarettes and heated tobacco units fell
1.2%. Market share of heated tobacco units for IQOS rose 1.9 points
to 6.6% outside the U.S.
British American Tobacco PLC earlier this month sued Philip
Morris and Altria Group Inc., alleging that IQOS infringes on the
company's U.S. patents.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
April 21, 2020 07:41 ET (11:41 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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