Tobacco concern Philip Morris International reduced net profit and increased revenue in the second quarter of 2023, with adjusted profit and revenue exceeding market expectations.
At the same time, the company’s annual forecast was worse than analysts had expected.
According to the group’s press release, net income per share for the April-June quarter was $1.01, compared with $1.43 per share for the same period a year earlier. Operating profit fell 16% to $2.6 billion.
Adjusted earnings rose to $1.60 from $1.48 per share, with analysts forecasting $1.50.
Philip Morris’ quarterly revenue rose 14.5% to $8.97 billion, with analysts surveyed by FactSet on average forecasting revenue of $8.67 billion.
The company’s shipments rose 3.3% last quarter, with cigarette sales down 0.4% and sales of tobacco heating device sticks soaring 26.6%.
The number of Iqos e-cigarette users totaled 27.2 million at the end of June, up 1.4 million during the quarter, of which 19.4 million switched from regular cigarettes to Iqos, it said.
Philip Morris expects to record adjusted earnings in the range of $6.13 to $6.22 per share in 2023, compared with analysts’ forecast of $6.24 per share. The company expects total global shipments, excluding China, to decline 0.5-1.5% this year.
Philip Morris shares were stable in pre-market trading Thursday. The company’s capitalization is down 2.4% YTD to $152.66 billion.
Philip Morris was spun off from Altria in 2008 and is among the world’s largest tobacco manufacturers. It produces cigarettes at 39 facilities around the world and sells them in more than 180 markets. Its brand portfolio includes Marlboro, L&M, Chesterfield, Parliament, Bond Street and other brands. PMI also produces Iqos tobacco heating systems and tobacco sticks.
