Marlboro and L&M maker Philip Morris International (PMI) has reported its net revenues in the second quarter of its 2019 fiscal year fell marginally by 0.3%.
The group, which achieved revenues of $7.7 billion, reported that, excluding unfavourable currency, revenues increased by 5.4%, mainly reflecting: a favourable pricing variance.
On a like-for-like basis, net revenues, excluding unfavourable currency, increased by 9.0%.
The group’s adjusted operating income was up by 3.8% on a like-for-like basis, and increased by 9.1% if unfavourable currency is excluded.
André Calantzopoulos, chief executive of PMI, said that the quarter is another strong quarter to build on the encouraging start to the year.
“Our strong year-to-date results are the reason behind today's announcement to increase our full-year guidance,” he said, “and raise our currency-neutral, like-for-like 2019 full-year adjusted diluted EPS growth rate by one percentage point to at least 9% in a further demonstration of our overall confidence in PMI's short- and long-term growth prospects.”
He added that this projection includes additional investment to support the geographic expansion and portfolio development that “should help us enter 2020 in an even stronger position”.
Combined, PMI’s cigarette and heated tobacco unit shipment volume was up by 0.1% on a like-for-like basis for the first six months of the year, driven by impressive sales growth in its heated tobacco unit.
Malboro, the company’s biggest cigarette brand, saw its shipment volume decline by 1.2%, mainly due to poor performances in Japan, but also to the wave of people switching to heated tobacco products.
Heated tobacco products heat tobacco instead of burning it, which heats tobacco at a much lower rate and reduces the levels of harmful chemicals, as well as offering the same taste, without combustion, fire, ash, or smoke
The group said that the increase in its heated tobacco products was mainly driven by Eastern Europe, notably Russia, Ukraine, and Japan.
It added that growth partly offset by Korea and PMI Duty-Free.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.