Regulatory News:
Philip Morris International Inc. (PMI) (NYSE: PM) is pleased to
announce that Jacek Olczak was appointed Chief Executive Officer
following the company’s 2021 Annual Shareholders Meeting earlier
today. Mr. Olczak—most recently the company’s Chief Operating
Officer—was also elected to the Board of Directors. André
Calantzopoulos, who served as PMI’s Chief Executive Officer from
2013, was appointed Executive Chairman of the Board prior to the
meeting. Mr. Lucio Noto stepped down from his role as interim
Chairman of the Board and was reelected to the Board of Directors.
The appointments follow the announcement of PMI’s leadership
transition in December 2020. When determined, PMI will announce the
name of the Lead Independent Director on its website.
In accepting his appointment as CEO, Mr. Olczak committed to
accelerating PMI’s smoke-free transformation, announced in 2016.
The company is focused on developing, scientifically
substantiating, and responsibly commercializing smoke-free products
that are less harmful than smoking, with the aim of replacing
cigarettes as soon as possible.
Mr. Olczak said: “I am humbled and excited to lead PMI as we
accelerate our transformation into a smoke-free company. PMI is an
industry leader in scientific innovation, and our ambition is that
more than half of our net revenues will come from smoke-free
products in 2025. Our evolving portfolio will drive our long-term
future. We will lean into our scientific research and expertise,
using our collective skills and imagination to innovate beyond our
existing portfolio and explore new areas of business
development.”
Mr. Olczak, 56, began his career with PMI in 1993. He started in
finance and general management positions across Europe, including
as Managing Director of PMI’s markets in Poland and Germany and as
President of the European Union Region, before being appointed
Chief Financial Officer in 2012. He held that position until 2018,
when he became PMI’s Chief Operating Officer. He holds a master’s
degree in economics from the University of Lodz, Poland.
Mr. Olczak has been a vital driver of PMI’s smoke-free
transformation, which moved into its commercialization phase with
the launch of IQOS in Nagoya, Japan, in 2014. Under his oversight
as COO, PMI increased the portion of its net revenues derived from
smoke-free products to 28 percent in the first quarter of 2021.
Further, the company grew the geographical coverage of its
smoke-free products from zero to 66 markets in key cities or
nationwide as of March 31, 2021. And Mr. Olczak led PMI’s
commercial transformation, successfully developing it from a
primarily business-to-business company to an increasingly
business-to-consumer company.
Mr. Calantzopoulos said: “Jacek is ideally placed to deliver
PMI’s smoke-free vision in his new role as CEO. His passion for the
company and our employees underpins his drive for results, as does
his deep knowledge of our products, systems, values, and investors.
I believe he is the ideal leader to ensure our business’s continued
growth and deliver shareholder value. I look forward to continuing
to work with him in my new capacity as Executive Chairman of the
Board.”
Approximately 85 percent of the shares entitled to vote were
represented at the meeting in person or by proxy. The shareholders
elected 13 nominees for director; approved, on an advisory basis,
the compensation of named executive officers; and ratified the
selection of PricewaterhouseCoopers SA as independent auditors.
Final voting results will be included in a Form 8-K that PMI will
file with the SEC within the next few days.
An archived copy of the webcast of the meeting will be available
for approximately one year from the date of the meeting at
www.virtualshareholdermeeting.com/PMI2021. The presentation slides
and script will also be available at the same website address.
Philip Morris International: Delivering a Smoke-Free
Future
Philip Morris International (PMI) is leading a transformation in
the tobacco industry to create a smoke-free future and ultimately
replace cigarettes with smoke-free products to the benefit of
adults who would otherwise continue to smoke, society, the company
and its shareholders. PMI is a leading international tobacco
company engaged in the manufacture and sale of cigarettes, as well
as smoke-free products, associated electronic devices and
accessories, and other nicotine-containing products in markets
outside the U.S. In addition, PMI ships versions of its IQOS
Platform 1 device and consumables to Altria Group, Inc. for sale
under license in the U.S., where these products have received
marketing authorizations from the U.S. Food and Drug Administration
(FDA) under the premarket tobacco product application (PMTA)
pathway; the FDA has also authorized the marketing of a version of
IQOS and its consumables as a Modified Risk Tobacco Product (MRTP),
finding that an exposure modification order for these products is
appropriate to promote the public health. PMI is building a future
on a new category of smoke-free products that, while not risk-free,
are a much better choice than continuing to smoke. Through
multidisciplinary capabilities in product development,
state-of-the-art facilities and scientific substantiation, PMI aims
to ensure that its smoke-free products meet adult consumer
preferences and rigorous regulatory requirements. PMI’s smoke-free
product portfolio includes heat-not-burn and nicotine-containing
vapor products. As of March 31, 2021, PMI’s smoke-free products are
available for sale in 66 markets in key cities or nationwide, and
PMI estimates that approximately 14.0 million adults around the
world have already switched to IQOS and stopped smoking. For more
information, please visit www.pmi.com and www.pmiscience.com.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and
other forward-looking statements. Achievement of future results is
subject to risks, uncertainties and inaccurate assumptions. In the
event that risks or uncertainties materialize, or underlying
assumptions prove inaccurate, actual results could vary materially
from those contained in such forward-looking statements. Pursuant
to the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995, PMI is identifying important factors
that, individually or in the aggregate, could cause actual results
and outcomes to differ materially from those contained in any
forward-looking statements made by PMI.
PMIs business risks include: excise tax increases and
discriminatory tax structures; increasing marketing and regulatory
restrictions that could reduce our competitiveness, eliminate our
ability to communicate with adult consumers, or ban certain of our
products; health concerns relating to the use of tobacco and other
nicotine-containing products and exposure to environmental tobacco
smoke; litigation related to tobacco use and intellectual property;
intense competition; the effects of global and individual country
economic, regulatory and political developments, natural disasters
and conflicts; changes in adult smoker behavior; lost revenues as a
result of counterfeiting, contraband and cross-border purchases;
governmental investigations; unfavorable currency exchange rates
and currency devaluations, and limitations on the ability to
repatriate funds; adverse changes in applicable corporate tax laws;
adverse changes in the cost, availability, and quality of tobacco
and other agricultural products and raw materials, as well as
components and materials for our electronic devices; and the
integrity of its information systems and effectiveness of its data
privacy policies. PMI's future profitability may also be adversely
affected should it be unsuccessful in its attempts to produce and
commercialize reduced-risk products or if regulation or taxation do
not differentiate between such products and cigarettes; if it is
unable to successfully introduce new products, promote brand
equity, enter new markets or improve its margins through increased
prices and productivity gains; if it is unable to expand its brand
portfolio internally or through acquisitions and the development of
strategic business relationships; or if it is unable to attract and
retain the best global talent. Future results are also subject to
the lower predictability of our reduced-risk product category’s
performance.
The COVID-19 pandemic has created significant societal and
economic disruption, and resulted in closures of stores, factories
and offices, and restrictions on manufacturing, distribution and
travel, all of which will adversely impact our business, results of
operations, cash flows and financial position during the
continuation of the pandemic. Our business continuity plans and
other safeguards may not be effective to mitigate the impact of the
pandemic. Currently, significant risks include our diminished
ability to convert adult smokers to our RRPs, significant volume
declines in our duty-free business and certain other key markets,
disruptions or delays in our manufacturing and supply chain,
increased currency volatility, and delays in certain cost saving,
transformation and restructuring initiatives. Our business could
also be adversely impacted if key personnel or a significant number
of employees or business partners become unavailable due to the
COVID-19 outbreak. The significant adverse impact of COVID-19 on
the economic or political conditions in markets in which we operate
could result in changes to the preferences of our adult consumers
and lower demand for our products, particularly for our mid-price
or premium-price brands. Continuation of the pandemic could disrupt
our access to the credit markets or increase our borrowing costs.
Governments may temporarily be unable to focus on the development
of science-based regulatory frameworks for the development and
commercialization of RRPs or on the enforcement or implementation
of regulations that are significant to our business. In addition,
messaging about the potential negative impacts of the use of our
products on COVID-19 risks may lead to increasingly restrictive
regulatory measures on the sale and use of our products, negatively
impact demand for our products, the willingness of adult consumers
to switch to our RRPs and our efforts to advocate for the
development of science-based regulatory frameworks for the
development and commercialization of RRPs.
The impact of these risks also depends on factors beyond our
knowledge or control, including the duration and severity of the
pandemic, its recurrence in our key markets, actions taken to
contain its spread and to mitigate its public health effects, and
the ultimate economic consequences thereof.
PMI is further subject to other risks detailed from time to time
in its publicly filed documents, including the Form 10-Q for the
quarter ended March 31, 2021. PMI cautions that the foregoing list
of important factors is not a complete discussion of all potential
risks and uncertainties. PMI does not undertake to update any
forward-looking statement that it may make from time to time,
except in the normal course of its public disclosure
obligations.
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version on businesswire.com: https://www.businesswire.com/news/home/20210505005738/en/
David Fraser / Corey Henry Philip Morris International T. +41 79
843 8603 / +1 (202) 679 7296 E. David.Fraser@pmi.com /
Corey.Henry@pmi.com
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