Revises 2021 Full-Year
Reported Diluted EPS Forecast, for Currency Only,
to Range of $5.74 to $5.79, or $5.98 to
$6.03 on an Adjusted Basis, Representing Currency-Neutral Growth of
13% to 14%
Regulatory News:
Philip Morris International Inc.’s (NYSE: PM) Chief Financial
Officer, Emmanuel Babeau, addresses investors today at the Morgan
Stanley Virtual Global Consumer & Retail Conference.
The presentation and Q&A session will be conducted in a
virtual format, beginning at approximately 8:00 a.m. Eastern Time.
A live video webcast of the entire PMI session will be available,
in a listen-only mode, at www.pmi.com/2021morganstanley.
Presentation slides will be available on the same site.
An archived copy of the webcast will be available at
www.pmi.com/2021morganstanley until 5:00 p.m. Eastern Time on
Thursday, December 30, 2021. The archived webcast can also be
accessed on iOS or Android devices by downloading PMI’s free
Investor Relations Mobile Application at www.pmi.com/irapp.
“We remain on-track to deliver an excellent performance in 2021,
with a full-year EPS forecast that continues to represent
currency-neutral adjusted diluted EPS growth of 13% to 14%,” said
Jacek Olczak, Chief Executive Officer. “We are seeing strong IQOS
momentum despite the ongoing impact of the semiconductor supply
shortage and expect improved sequential IQOS user growth in the
fourth quarter. Importantly, we remain confident in our 2021 to
2023 organic compound annual growth targets.”
2021 Full-Year Forecast
PMI revises its full-year reported diluted EPS forecast, for
currency only, to a range of $5.74 to $5.79, at prevailing exchange
rates, from a range of $5.77 to $5.82 previously. On an adjusted
basis, this forecast represents a projected currency-neutral
increase of 13% to 14% versus adjusted diluted EPS of $5.17 in
2020, as outlined in the table below.
Full-Year
2021 Forecast
2020
Growth
Reported Diluted EPS
$5.74
-
$5.79
$5.16
Saudi Arabia customs assessments
0.14
—
Asset impairment and exit costs
0.09
0.08
Asset acquisition cost
0.03
—
Equity investee ownership dilution
(0.02
)
—
Fair value adjustment for equity security
investments
0.04
Tax items
(0.06
)
Brazil indirect tax credit
(0.05
)
Adjusted Diluted EPS
$5.98
-
$6.03
$5.17
Currency
(0.14
)
Adjusted Diluted EPS, excluding
currency
$5.84
-
$5.89
$5.17
13
%
-
14
%
In light of recent currency volatility, the company is providing
a directional indication of the potential unfavorable currency
impact next year. Applying prevailing exchange rates to anticipated
2021 full-year adjusted diluted EPS would imply an estimated
unfavorable impact of around $0.40 per share. PMI will provide its
2022 full-year diluted EPS forecast in February.
2021 Full-Year Forecast Assumptions
The assumptions underlying this forecast remain unchanged versus
those communicated by PMI in its earnings release of October 19,
2021, with the exception of a favorable currency impact of $0.14
per share, at prevailing exchange rates, compared to $0.17 per
share, previously.
This forecast excludes the impact of any future acquisitions,
unanticipated or unquantifiable asset impairment and exit cost
charges, future changes in currency exchange rates, further
developments pertaining to the judgment in the two Québec Class
Action lawsuits and the Companies’ Creditors Arrangement Act (CCAA)
protection granted to PMI's Canadian subsidiary, Rothmans, Benson
& Hedges, Inc. (RBH), any unusual events, any intensification
of the global shortage of semiconductors and the related impact on
the supply of our electronic devices, and any COVID-19-related
developments different from the assumptions set forth in the
company's forecast.
Factors described in the Forward-Looking and Cautionary
Statements section of this release represent continuing risks to
these projections.
Forward-Looking & Cautionary Statements
This press release, the presentation and related discussion
contain 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.
PMI's 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 in certain markets or countries; 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.
In addition, PMI’s business risks also include risks and
uncertainties related to PMI’s acquisitions of Fertin Pharma A/S
(“Fertin”), OtiTopic, Inc. ("OtiTopic") and Vectura Group plc
(“Vectura”), including, amongst other things: (1) the possibility
that the integration of the operations of Fertin and Vectura with
those of PMI may be more difficult and/or take longer than
anticipated, and may not accelerate PMI’s desired entry into
additional smoke-free and beyond nicotine platforms as quickly as
anticipated; (2) the possibility that the respective integrations
of Fertin and Vectura into PMI may be more costly than anticipated
and may have unanticipated adverse results relating to Fertin,
Vectura or PMI’s existing businesses; (3) the inability to gain
access to or acquire differentiated proprietary assets, technology
and/or pharmaceutical development expertise as anticipated by these
acquisitions; (4) risks associated with third-party contracts
containing consent and/or other contractual provisions that may be
triggered by the acquisitions; (5) the success of the research and
development efforts of Fertin, OtiTopic and Vectura, including the
ability to obtain regulatory approval for new products, and the
ability to commercialize or license these new products; (6) any
unanticipated safety, quality or efficacy concerns and the impact
of identified concerns associated with the products developed by
Fertin, OtiTopic and Vectura; and (7) the ability to retain key
personnel of Fertin and Vectura, or hire key talent to work in the
Fertin and Vectura businesses.
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 reduced-risk products,
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 continuation of the COVID-19 pandemic. 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
reduced-risk products 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 reduced-risk products and our efforts to advocate
for the development of science-based regulatory frameworks for the
development and commercialization of reduced-risk products.
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 September 30, 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.
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,
its shareholders and other stakeholders. 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, versions of PMI's
IQOS Platform 1 device and consumables 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 products,
nicotine-containing vapor products and oral nicotine products. As
of September 30, 2021, PMI's smoke-free products are available for
sale in 70 markets in key cities or nationwide, and PMI estimates
that approximately 14.9 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211201005520/en/
Investor Relations: New York: +1 (917) 663 2233 Lausanne: +41
(0)58 242 4666 Email: InvestorRelations@pmi.com
Media: Lausanne: +41 (0)58 242 4500 Email:
Iro.Antoniadou@pmi.com
Philip Morris (NYSE:PM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Philip Morris (NYSE:PM)
Historical Stock Chart
From Apr 2023 to Apr 2024