Adjusted earnings of $2.20 beat analyst forecast of $2.03
Philip Morris International reported Wednesday that second-quarter revenue rose 10% to $11.19 billion, surpassing the $10.60 billion analysts had projected. Adjusted per-share earnings came in at $2.20, ahead of the $2.03 estimate, according to FactSet. On a reported basis, earnings were $1.80 a share, down from $1.95 a year earlier.
The results were driven by growth in Philip Morris International’s smoke-free products, which now account for 42% of total revenue. Sales in the smoke-free business increased 11.7%, while combustibles revenue grew 9.5%. Internationally, smoke-free sales jumped 14%. Philip Morris International said cigarette volume grew in Turkey, Indonesia and Egypt, outweighing declines in other markets.
In the U.S., Zyn nicotine pouch shipments rose 1.8% to 2.9 billion pouches, partially offsetting declines in cigar sales. Philip Morris International expanded its Zyn portfolio during the quarter, though overall U.S. revenue fell 0.7%.
The Middle East conflict has had a minor impact on Philip Morris International’s business so far, the company said, mainly pushing up costs for transportation, energy and other inputs. “While we have observed increased energy prices and some disruption in energy supply in a number of markets, it has not yet resulted in a discernible shift in consumer behavior,” the company said.
For the full year, Philip Morris International is projecting adjusted earnings per share of $8.26 at the midpoint, compared with the $8.36 analysts were forecasting.