Q2 2026 Philip Morris International Inc Earnings Call Transcript
Key Points
- Philip Morris International Inc (PM) reported a strong Q2 with an 8% organic growth in net revenue and an 11% increase in operating income.
- The company's International Smoke-Free business showed high single-digit volume growth and double-digit top-line growth.
- IQOS adjusted in-market sales volume increased by 5%, despite challenges in Japan and Poland.
- The US market showed significant sequential improvement in net revenues, gross profit, and operating company income.
- Philip Morris International Inc (PM) plans to accelerate US investment in the second half of the year to support ZYN brand equity and portfolio expansion.
- The company faced transitory headwinds from the April excise increase in Japan and the flavor ban in Poland.
- ZYN offtake volumes in the US were broadly stable to slightly growing, reflecting an uneven competitive landscape.
- Oral Smoke-Free volumes declined by 1.2% in the quarter, primarily due to industry declines and inventory impact in the Nordics.
- The company expects higher SG&A costs in the second half than previously anticipated due to increased US growth investments.
- Despite strong pricing, the Combustible business faces a more adverse geographic mix, impacting revenue growth.
Good day, and thank you for standing by. Welcome to the Philip Morris International 2026 second-quarter results. (Operator Instructions) Please be advised that today's call is being recorded. I would now like to hand it over to our first speaker, James Bushnell, Vice President of Investor Relations and Financial Communications. Please go ahead.
Welcome. Thank you for joining us. Earlier today, we issued a press release containing detailed information on our 2026 second-quarter results. The press release is available on our website at pmi.com. A glossary of terms, including the definition for Smoke-Free products as well as adjustments, other calculations and reconciliations to the most directly comparable US GAAP measures for non-GAAP financial measures cited in this presentation are available in Exhibit 99.2 to the company's Form 8-K dated today and on our Investor Relations website.
Today's remarks contain forward-looking statements and projections of future results. I direct your
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