Sign in

    Philip Morris International Inc (PM)

    You might also like

    Philip Morris International Inc. (PMI) is a leading international tobacco company committed to creating a smoke-free future by expanding its portfolio beyond traditional tobacco and nicotine products. The company primarily sells cigarettes and smoke-free products, which include heat-not-burn, e-vapor, and oral nicotine products, as well as wellness and healthcare products through its Vectura Fertin Pharma business . PMI has invested significantly in developing innovative smoke-free products, with brands like IQOS and ZYN leading their smoke-free portfolio . The company's operations are organized into several geographical segments, focusing on different regions worldwide .

    1. Smoke-Free Products - Includes heat-not-burn, e-vapor, and oral nicotine products, with leading brands such as IQOS and ZYN driving the company's transition to a smoke-free future.
      • IQOS - A heat-not-burn product designed to provide a smoke-free alternative to traditional cigarettes.
      • ZYN - An oral nicotine product offering a smoke-free experience.
    2. Wellness and Healthcare - Focuses on inhaled therapeutics and oral delivery systems through the Vectura Fertin Pharma business, expanding PMI's reach beyond traditional tobacco products.
    3. Combustible Tobacco Products - Comprises traditional cigarettes and other tobacco products, continuing to contribute to the company's revenue.
    4. Geographical Segments - Organized into Europe, South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa (SSEA, CIS & MEA), East Asia, Australia, and PMI Duty Free (EA, AU & PMI DF), and the Americas, allowing PMI to cater to diverse markets worldwide.
    NamePositionStart DateShort Bio
    Jacek OlczakChief Executive OfficerMay 2021Jacek Olczak is the Chief Executive Officer of Philip Morris International Inc. (PMI). He previously served as the Chief Operating Officer from January 2018 until May 2021, and as the Chief Financial Officer from August 2012 until December 31, 2017. Mr. Olczak joined PMI's Polish affiliate in 1993 .
    Massimo AndolinaPresident, Europe RegionJanuary 2023Massimo Andolina is the President, Europe Region at PMI. He was previously the Senior Vice President, Operations from January 2018. He joined PMI in 2008 as Director, Operations Planning, and has held various roles within the company .
    Emmanuel BabeauChief Financial OfficerMay 2020Emmanuel Babeau was appointed as the Chief Financial Officer of PMI in May 2020. Before joining PMI, he served as the Deputy Chief Executive Officer of Schneider Electric, responsible for Finance and Legal Affairs .
    Werner BarthPresident, Combustibles Category & Global Combustibles MarketingNovember 2021Werner Barth was appointed as the President, Combustibles Category & Global Combustibles Marketing at PMI in November 2021. He joined PMI in 1990 as a Marketing Trainee at Philip Morris Germany and has held various roles in marketing and general management .
    Lars DahlgrenPresident, Smoke-Free Oral Products & CEO of Swedish MatchJanuary 2023Lars Dahlgren was appointed as the President, Smoke-Free Oral Products and CEO of Swedish Match in January 2023. Before PMI's acquisition of Swedish Match, he served as the President and CEO of Swedish Match from June 2008 .
    Frederic de WildePresident, South and Southeast Asia, CIS, Middle East and Africa RegionsJanuary 2023Frederic de Wilde was appointed as the President, South and Southeast Asia, CIS, Middle East and Africa Regions at PMI in January 2023. He joined PMI in 1992 as a Brand Manager for L&M at Philip Morris Belgium and has held various roles in marketing, sales, and general management .
    Reginaldo DobrowolskiVice President and ControllerAugust 2021Reginaldo Dobrowolski was appointed as Vice President and Controller at PMI in August 2021. He previously served as Vice President, Corporate Financial Planning, Data & Reporting from May 2019 until August 2021 .
    Yann GuérinSenior Vice President and General CounselJuly 2023Yann Guérin was appointed as Senior Vice President and General Counsel at PMI in July 2023. He has held various legal roles across PMI's businesses since joining the company in 2006 .
    Stacey KennedyPresident, Americas Region & CEO of PMI's U.S. BusinessJanuary 2023Stacey Kennedy was appointed as the President, Americas Region & CEO of PMI's U.S. Business in January 2023. She previously served as the President, South and Southeast Asia Region from January 2018 .
    Paul RileyPresident, East Asia, Australia, and PMI Duty Free RegionJanuary 2023Paul Riley was appointed as the President, East Asia, Australia, and PMI Duty Free Region in January 2023. He joined Philip Morris Australia in 1988 and has held various positions in Australia, Hong Kong, and Japan .
    Stefano VolpettiPresident, Smoke-Free Inhalable Products & Chief Consumer OfficerJanuary 2023Stefano Volpetti was appointed as the President, Smoke-Free Inhalable Products & Chief Consumer Officer at PMI in January 2023. He joined PMI in June 2019 as Chief Consumer Officer .
    1. One of your peers highlighted that in Europe, vapor is seeing greater success in fully converting smokers than heated tobacco; what are your latest thoughts on this topic, and are you seeing an acceleration in vapor adoption as you roll out VEEV in several markets?

    2. Regarding the illicit nicotine pouches entering the U.S. market that may infringe on your patents, could you expand on what measures you are currently taking or expect to take, and how do you think this will differ from the current environment we see in vapor in the U.S.?

    3. Considering your increased pricing guidance of 8% to 9% and yet positive volumes in combustible cigarettes, shouldn't FY '25 also be a strong year for cigarette volumes and pricing internationally, and can you touch on any disruptive excise tax hikes expected in the next few months?

    4. It looks like you modestly took down the top end of your potential deleveraging for this year; could you address what drove that, and with sizable maturities over 2025, are you considering pulling some of that refinancing forward into the remainder of this year, given where markets are opportunistically?

    5. With the ongoing supply constraints for ZYN in the U.S., what measures are you taking to match consumer demand, and how confident are you in your capacity expansion plans to meet future growth?

    Program DetailsProgram 1
    Approval DateJune 11, 2021
    End Date/DurationJuly 21, 2024
    Total additional amount$7 billion
    Remaining authorization$6,016,847,275
    DetailsProgram suspended on May 11, 2022, due to the acquisition of Swedish Match. No repurchases in 2023 and 2024.
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2024$4,833 Current portion of long-term debtN/A9.8% = (4,833 / 49,200) * 100
    2024$299 Swiss franc note1.625 0.6% = (299 / 49,200) * 100
    2025$3,000 Euro credit facility borrowings4.009 (average) 6.1% = (3,000 / 49,200) * 100
    2027$2,500 Euro credit facility borrowings4.009 (average) 5.1% = (2,500 / 49,200) * 100
    2027$6,140 Euro credit facility borrowings (Swedish Match acquisition)4.009 (average) 12.5% = (6,140 / 49,200) * 100
    2029$236 Swedish krona notes1.395 to 2.710 (avg 2.016) 0.5% = (236 / 49,200) * 100
    2032$486 Other (includes bank loans and finance leases)5.038 (average) 1.0% = (486 / 49,200) * 100
    2039$8,126 Euro notes0.125 to 3.750 (avg 1.964) 16.5% = (8,126 / 49,200) * 100
    2044$34,082 U.S. dollar notes0.875 to 6.375 (avg 4.572) 69.3% = (34,082 / 49,200) * 100

    Competitors mentioned in the company's latest 10K filing.

    • British American Tobacco plc - Competitor in the tobacco industry .
    • Japan Tobacco Inc. - Competitor in the tobacco industry .
    • Imperial Brands plc - Competitor in the tobacco industry .
    • New market entrants - Particularly with respect to innovative products .
    • Several regional and local tobacco companies - Competitors in various regions .
    • State-owned tobacco enterprises - Principally in Algeria, Egypt, China, Taiwan, Thailand, and Vietnam .
    CustomerRelationshipSegmentDetails
    Europe Region Distributor
    Distributor
    Europe
    Accounted for 12% in 2023, 13% in 2022, and 13% in 2021Of consolidated net revenues.
    EA, AU & PMI DF Region Distributor
    Distributor
    East Asia, Australia & PMI Duty Free
    Accounted for 11% in 2023, 12% in 2022, and 15% in 2021Of consolidated net revenues.
    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers SA2008 PresentCurrent auditor

    Recent developments and announcements about PM.

    Financial Actions

      Debt Issuance

      ·
      Dec 17, 2024, 9:33 PM

      Philip Morris International Inc. (PMI) has recently entered into a credit agreement for a senior unsecured revolving credit facility amounting to €1.5 billion (approximately $1.6 billion). This agreement, effective from January 29, 2025, involves several lenders with Citibank Europe PLC, UK Branch acting as the facility agent. The facility is set to expire on January 29, 2028, unless extended. The interest rates for borrowings under this facility will be based on prevailing market rates, and the funds are intended for general corporate purposes, including meeting working capital requirements .

      This financial obligation could potentially impact PMI's balance sheet by increasing its liabilities due to the borrowed amount. However, as it is a revolving credit facility, PMI has the flexibility to borrow, repay, and reborrow funds as needed, which can aid in managing liquidity and financial health effectively. The agreement includes customary events of default, such as nonpayment of principal or interest, which, if triggered, could lead to the acceleration of outstanding loans and termination of lender commitments .