DUBAI: Philip Morris International Inc (PMI) (NYSE: PM) announced its 2024 first-quarter results. “The strength of our first-quarter results with excellent top-line growth and significant margin expansion gives us the confidence to raise our 2024 currency-neutral guidance,” said Jacek Olczak, Chief Executive Officer. “Strong smoke-free momentum continues with rapid underlying volume progression and accelerating organic net revenue and gross profit growth, fueled by the operating leverage of IQOS and the best-in-class economics of ZYN.”

“We are executing efficiently and effectively in a dynamic operating environment of geopolitical and economic tensions that accentuate currency volatility. We are doing our utmost to mitigate these challenges and deliver robust growth and value creation.”

Highlights:

• Smoke-free business (SFB): The smoke-free business accounted for 39% of our total net revenues. The path to achieving our ambition of becoming a smoke-free company is shown by the EA, AU & PMI DF region, where SFB accounted for almost two-thirds of revenue, led by Japan and Korea.

Our SFB continues to deliver superior top-line growth, with net revenues increasing by 21.1 percent (24.8 percent organically) as well as a 31.8 percent (37.5 percent organic) increase in gross profit.

• Inhalable smoke-free products (SFP): IQOS continues to strengthen its position as the second largest nicotine ‘brand’ in markets where present, including the #1 position in 11 markets. HTU adjusted in-market sales (IMS) volume, which excludes the net impact of estimated distributor and wholesaler inventory movements, was up by an estimated 12.5 percent.

• In Europe, IQOS HTU market share exceeded 10 percent for the first time with adjusted IMS growth of 9.4 percent, which was influenced, as expected, by the impact from the EU characterizing flavor ban.

• In Japan, IQOS HTU market share increased by more than 3 percentage points to over 29 percent, with adjusted IMS growth of 13.3 percent. Notably, the heat-not-burn category surpassed combustible cigarettes in Tokyo, a demonstration of the vast potential of IQOS around the world. To celebrate the 10-year anniversary of the IQOS launch in Japan, we introduced IQOS ILUMA i, our most innovative offering to-date, with very positive initial consumer feedback.

• Oral SFP2: Shipment volume increased by 40.0 percent in cans (35.8 percent in pouches or pouch equivalents), fueled by ZYN nicotine pouch growth in the US, where shipment volume reached 131.6 million cans, representing growth of 79.7 percent versus prior year. Our share of the category in the US increased for the fourth consecutive quarter to over 74 percent, up 1.3 percentage points sequentially.

• Combustibles: Net revenues grew by 3.5 percent (organically by 3.7 percent), fueled by another quarter of strong pricing across markets. Our category share increased by 0.3 percentage points with Marlboro gaining 0.4 percentage points.

• Dividend: Declared regular quarterly dividend of $1.30 per share, or an annualized rate of $5.20 per share.