Despite net revenues dropping by 13.6 per cent and operating income down by 14.3 per cent compared to the second quarter 2019, PMI said that the results had exceeded previous expectations. "Despite a very challenging quarter due to the pandemic, we delivered results above our previously communicated expectations for both net revenues and reported diluted EPS," said André Calantzopoulos, Chief Executive Officer.
In the cigarette and heated tobacco sector, PMI sold a total of 170.07 billion units worldwide during its second quarter which was 14.5 per cent less than in the second quarter of 2019. Whilst the number of cigarettes shipped decreased from 183.8 billion sticks to 151 billion sticks, the amount of heated tobacco units continued to increase by 24.3 per cent from 15.1 billion to 18.7 billion units.
Market share for heated tobacco units in IQOS markets went up by 1.8 points to 6.3 per cent. On July 7, 2020, the U.S. Food and Drug Administration (FDA) authorized the marketing of the IQOS tobacco heating system as a modified risk tobacco product.
"Importantly, we are very pleased with the U.S. FDA’s recent authorization of IQOS as a modified risk tobacco product. This is a historic milestone for both public health and PMI, and reflects the FDA’s recognition that IQOS is a fundamentally different product than cigarettes and must be regulated differently," said Calantzopoulos.