Q1 2026 Philip Morris International Inc Earnings Call Transcript
Key Points
- Philip Morris International Inc (PM) reported a strong start to the year with impressive growth in its International Smoke-Free business, achieving double-digit volume growth.
- The company delivered a 16% increase in adjusted diluted earnings per share, reaching $1.96, supported by robust pricing and strong performance in the smoke-free segment.
- IQOS, a key product in the smoke-free portfolio, showed significant growth with a 10.9% increase in adjusted in-market sales, driven by strong momentum in Europe and Japan.
- The company's Global Smoke-Free business achieved solid organic net revenue growth of 5.3% and organic gross profit growth of 3.9%, despite challenges in the US market.
- Philip Morris International Inc (PM) maintained strong pricing power in its combustible business, with an 8.5% increase in pricing, contributing to a 3.9% organic gross profit growth.
- Cigarette volumes declined at the high end of expectations, reflecting a challenging economic environment and increased illicit consumption in certain markets.
- The US segment faced challenges due to increased investment and inventory overhang, impacting shipments and financial performance.
- The company experienced a decline in oral smoke-free volume by 16%, particularly in the US, due to shipment and inventory headwinds.
- There was a discernible volume decline in Germany's combustible segment, attributed to both market share and industry slowdown.
- The excise tax increase in Japan and potential future tax changes in the US pose uncertainties and challenges for the company's growth trajectory.
Good day and thank you for standing by. Welcome to the Philip Morris International 2026 first-quarter results call. (Operator Instructions)
Please be advised that today's call is being recorded.
I would like to hand it over to our first speaker, James Bushnell, Vice President of Investor Relations and Financial Communication. Please go ahead.
Welcome. Thank you for joining us. Earlier today, we issued a press release containing detailed information on our 2026 first-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 the exhibit to the company's Form 8-K dated on today's date and on our Investor Relations website.
Today's remarks contain forward-looking statements and projections
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