PMI Quarterly Results ‘Above Expectations’

Philip Morris International (PMI) has released its second-quarter results and reinstated its 2020 forecast.
 
Diluted earnings per share were down by 16.1 percent, and net revenues were down by 13.6 percent. Operating income was down by 14.3 percent.
 
Market share for heated-tobacco units in IQOS markets rose by 1.8 points to 6.3 percent.
 
“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.”
 
PMI reinstated its 2020 full-year forecast after withdrawing it in April due to uncertainty surrounding the Covid-19 pandemic. 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.