Philip Morris International Inc. (PMI) has released its second quarter results for 2023 with adjusted net revenues up 10.5 per cent compared to the same time last year, according to PMI’s press release.

Net revenues increased by 10.5 per cent on an organic basis, driven by total cigarette and HTU shipment volume growth of 3.3 per cent (reflecting growth of 26.6 per cent for HTUs and a decline of 0.4 per cent for cigarettes), the favourable product mix impact associated with the increasing proportion of smoke-free products within PMI’s product portfolio, and combustible tobacco pricing in excess of 9 per cent, according to the press release.
While excluded from organic financial performance in the quarter, Swedish Match delivered currency-neutral top-line growth of 19.1 per cent compared to its second-quarter 2022 results, led by shipment volume growth for ZYN in the U.S. of over 50 per cent. On a pro forma basis (including Swedish Match in all periods), PMI’s net revenues increased by 11.1 per cent, excluding currency.
As per the press release, adjusted operating income increased by 6.9 per cent on an organic basis, despite global inflationary pressures related to direct materials, tobacco leaf, energy and wages. Adjusted operating income margin of 39.4 per cent increased by 2.1 points sequentially versus the first quarter. Adjusted diluted EPS of USD 1.60 increased by 16.9 per cent, excluding currency. This exceeded the company’s forecast provided on June 6th, mainly driven by exceptional June volumes for ZYN in the U.S., stronger-than-anticipated combustibles performance, the favourable timing of certain costs (which are now expected to come in the third quarter), and a lower tax rate.
“Our strong business momentum continued with an excellent second quarter,” said Jacek Olczak, Chief Executive Officer. “Total cigarette and HTU shipment volume grew by 3.3 per cent, underpinning double-digit growth in net revenues and currency-neutral adjusted diluted EPS.”
“The outstanding performance of Swedish Match – fuelled by the growth of ZYN in the U.S. – is accelerating our smoke-free transformation and is complementing IQOS in growing our smoke-free leadership, whilst we also deliver resilient combustibles performance with enhanced pricing.”
“Our strong fundamentals give us further confidence as we enter the second half of the year, particularly as certain inflationary and operational pressures ease. We are therefore raising our full-year 2023 forecast for organic net revenue growth to a range of 7.5 per cent to 8.5 per cent and currency-neutral adjusted diluted EPS growth to a range of 8 per cent to 9.5 per cent,” said Olczak.