Philip Morris International Inc (PM, Financial) released its Q3 2023 earnings report on October 19, 2023. The report showcases a strong performance with significant growth in key financial metrics and an optimistic outlook for the full year.
Performance and Financial Highlights
PM reported a Q3 2023 diluted EPS of $1.32 and an adjusted diluted EPS of $1.67, representing a currency-neutral growth of 20.3%. The company's net revenues for the quarter reached $9.1 billion, marking a 13.8% increase from Q3 2022. Notably, Smoke-Free Product Net Revenues saw a significant increase of 35.6% to reach $3.3 billion, accounting for 36.2% of Total Net Revenues.
PM's total cigarette and heated tobacco unit (HTU) shipment volume for the quarter was 193.6 billion units, a 2.2% increase from Q3 2022. The HTU shipment volume alone was 32.5 billion units, marking an impressive 18.0% growth from the same period last year.
We delivered a very strong performance in the third quarter, surpassing $9 billion in quarterly net revenues for the first time and generating record quarterly adjusted diluted EPS of $1.67, representing currency-neutral growth of 20.3%," said Jacek Olczak, Chief Executive Officer of PM.
Full-Year Outlook
Following the strong Q3 performance, PM has raised its full-year 2023 growth outlook for adjusted diluted EPS to a range of 10.0% to 10.5%, excluding currency. The company forecasts a reported diluted EPS in the range of $4.95 to $4.98 for the full year.
The revised forecast assumes an estimated total international industry volume decline for cigarettes and HTUs, excluding China and the U.S., of 1.5% to 2.0%. PM expects total cigarette and HTU shipment volume growth of 1.0% to 1.5% and a cigarette shipment volume decline of approximately 1.0% to 2.0%.
PM's strong Q3 performance and optimistic full-year forecast demonstrate the company's resilience and growth potential amidst a challenging market environment. The company's focus on smoke-free products continues to drive its financial growth, positioning it well for future success.
