Philip Morris International (PMI) cigarette shipments fell 6.5 per cent in the first three months of the year as sales suffered from excise-tax hikes in the Philippines, Turkey and troubled economies in the European Union, the company said.

An unusually strong 5.3 per cent volume increase in the first quarter of 2012 created a strong base against which this year’s data was compiled, PMI said in a statement. Higher excise taxes from January in the Philippines caused that country’s volume to plummet 42.5 per cent, or 10 billion sticks, causing a 10.4 per cent fall in PMI’s normally robust Asia region.
Overall volume at 204.9 billion units is comprised of a 10.1 per cent slump to 43 billion sticks in the EU, a decline to 72.6 billion units in Asia and 7.5 per cent fall to 22.5 billion sticks in Latin America and Canada. Only the Eastern Europe, Middle East and Africa (EEMA) region showed an increase; by 1.4 per cent to 66.8 billion sticks.
Global volume of flagship Marlboro declined 4.8 per cent to 68.7 billion sticks.
About 60 per cent of the decline in the EU is attributable to the crises plagued southern tier, PMI said. Some consumers switched to other tobacco products. Growth in other EEMA countries partially offset the drop in Turkey. Inventory stocking in the months preceding introduction of higher taxes in 2013 played a role in the first-quarter decline, PMI said.
Sales rose in all regions except the EU to USD 7.6 billion, a gain of 1.8 per cent that would have been more without negative developments in foreign exchange rates, the company said. Profit measured by operating companies income declined 0.4 per cent to USD 3.47 billion. (ci)