PMI Quarterly Performance “Exceeds Expectations”
Philip Morris International (PMI) has released its second-quarter results and has reached its 2020 forecast.
Diluted earnings per share fell by 16.1%, and net income fell by 13.6%. Operating profit fell by 14.3%.
The market share of heated-tobacco units in the IQOS market increased by 1.8% to 6.3%.
“Despite a very challenging quarter due to the pandemic, we delivered results above our previously communicated expectations for both net revenues and reported diluted EPS,” said Andre Calantzopoulos, PMI’s chief executive officer.
“This primarily reflected favorable sequential performance in June, with a strong industry volume recovery—notably in the higher-margin EU region—and substantial IQOS user acquisition growth as well as the benefit of certain nonunderlying factors, some of which we expect to reverse in the third quarter.”
Due to the uncertainty surrounding the COVID-19 pandemic, PMI expects to resume its full-year forecast for 2020 in April. The “forecast represents a projected increase of approximately 2 percent to 5 percent versus pro forma adjusted diluted earnings per share of $5.13 in 2019,” according to PMI.
PMI Launches Anti-Cigarette Litter Campaign
Philip Morris International (PMI) launched “Our World is Not an Ashtray”, a new global program designed to raise awareness and promote long-term changes in litter’s behavior and attitudes around cigarette butts.
The plan supports PMI’s litter reduction goal, which is to reduce plastic waste from its products by 50% by 2025 (compared to the 2021 benchmark). The initiative, launched on WorldNoAshtray.com, aims to educate the public about the impact of cigarette butt litter on the environment and promote adult smokers to change their littering habits.
“We seek to make cigarette-butt littering socially unacceptable,” said Huub Savelkouls, chief sustainability officer at PMI. “‘Our World is Not an Ashtray’ is an important initiative in our multipronged approach to addressing this important issue.”
To track the progress of achieving its goals, PMI has collaborated with three agencies (Litterati, Cortexia, and CARTO) to assess the global prevalence of litter with a data-oriented approach, identify litter hotspots, and monitor the impact of anti-littering activities. The pilot evaluation will be conducted in a pilot city this summer, and then rolled out in representative countries around the world as part of a five-year assessment in 2021.
This article is issued by Tobacco Reporter.