PMI’s 3Q volume down sharply
Philip Morris International’s cigarette shipment volume during the third quarter (July-September), at 207,051 million was down by 5.4 percent on that of the third quarter of 2015, 218,911 million.
Shipments were increased by 0.4 percent to 52,001 million in the European Union, but they were down by 5.4 percent to 72,172 million in the company’s Eastern Europe, Middle East and Africa (EEMA) region; down by 8.0 percent to 21,185 million in Latin America and Canada; and down by 9.0 percent to 61,693 million in Asia.
In reporting its third quarter results, PMI said the 5.4 percent fall in cigarette shipment volume had been due mainly to its performance in its EEMA region, principally in countries of North Africa and in Russia, partly offset by its performance in Ukraine; in Asia, principally Indonesia, Pakistan, the Philippines and Thailand; and in Latin America & Canada, predominantly in Argentina, Brazil and Ecuador. These declines had been partly offset by the company’s performance in the EU, notably in France and the UK, partly offset by that in Greece and Italy.
Overall shipments of Marlboro during the third quarter fell by 1.1 percent to 73,338 million, with falls notably in Algeria, Argentina and Vietnam partly offset by the brand’s performance in France, Germany, Mexico, the Philippines and Spain.
Meanwhile, shipments of Chesterfield were up by 14.4 percent to 12,425 million; but shipments of other PMI brands fell.
L&M shipments were down by 3.2 percent to 25,349 million; Parliament shipments were down by 0.7 percent to 12,200 million; Bond Street shipments were down by 2.8 percent to 11,709 million; Philip Morris shipments were down by 7.1 percent to 8,726 million; Lark shipments were down by 4.5 percent to 6,994 million; and shipments of other cigarettes were down by 15.5 percent to 56,310 million.
PMI’s total shipment volume of other tobacco products (OTP), in cigarette equivalent units, fell by 4.5 percent; and total shipment volume for cigarettes and OTP, in cigarette equivalent units, was down by 5.4 percent.
Total shipments of HeatSticks reached 2.1 billion units, up from 278 million during the three months to the end of September 2015.
PMI’s cigarette market share was said to have increased in a number of markets, including those in Belgium, the Czech Republic, France, Germany, Kuwait, Poland, Saudi Arabia, Spain, Switzerland, Turkey, Ukraine and the UK.
PMI’s reported diluted earnings per share (EPS) during the third quarter of 2016, at $1.25, were unchanged from those of the third quarter of 2015, while adjusted diluted EPS, at $1.25, were up by $0.01 or 0.8 percent.
Reported net revenues, at $19.9 billion, were up by 2.6 percent, while net revenues, excluding excise taxes, at $7.0 billion, were up by 0.8 percent.
Reported operating income, at $3.0 billion, was up by 0.6 percent, while operating companies’ income, at $3.1 billion, was up by 1.2 percent, and adjusted operating companies’ income, at $3.1 billion, was up by 1.2 percent.
“Our adjusted diluted EPS in the quarter increased by 4.0 percent, excluding currency, in line with our expectations,” said CEO André Calantzopoulos.
“We are confident that we will achieve our full-year reported diluted EPS forecast. We continue to anticipate annual volume in line with the September year-to-date decline of 3.9 percent, despite temporary volume weakness this quarter.
“We are particularly encouraged by the strong performance of iQOS across all of its launch geographies, particularly in Japan where HeatSticks recorded a quarterly share of 3.5 percent.”