Philip Morris International (PMI) has reaffirmed its 2024 full-year earnings per share (EPS) forecast, signaling confidence in its operational strategy and market positioning. The expected range for reported diluted EPS is set between $5.89 and $6.01, while adjusted diluted EPS is projected between $6.33 and $6.45, reflecting a strong growth rate of 11% to 13% when excluding currency impacts. This stability in forecasted earnings is a positive indicator for investors, especially in light of PMI's ongoing transition to smoke-free products.
On September 3, 2024, Philip Morris International Inc. (PMI) participated in the 2024 Barclays Global Consumer Staples Conference, where CEO Jacek Olczak reaffirmed the company’s robust earnings forecast for the upcoming year. This announcement comes at a crucial time as PMI navigates the evolving landscape of the tobacco industry, focusing on a future that prioritizes smoke-free alternatives.
PMI has set its full-year reported diluted EPS forecast between $5.89 and $6.01, which represents a significant increase compared to the $5.02 reported in 2023. When adjusting for various factors, including unfavorable currency impacts and asset impairments, the company’s adjusted diluted EPS is projected to range from $6.33 to $6.45. This translates to an anticipated currency-neutral growth rate of approximately 11% to 13%, showcasing PMI’s resilience and strategic foresight in a challenging market.
Investors will note that the forecast remains consistent with the company's previous guidance presented in July 2024. PMI’s commitment to transitioning towards smoke-free products is evident, as the company has invested over $12.5 billion since 2008 in developing innovative alternatives to traditional tobacco. This investment is crucial in a market where regulatory pressures and health concerns continue to shape consumer behavior.
The significance of this reaffirmation cannot be understated. With the company’s smoke-free products generating approximately 38% of total net revenues in the first half of 2024, it is clear that PMI is not only pivoting away from traditional tobacco sales but is also successfully capturing a growing market of health-conscious consumers. PMI's smoke-free portfolio, including the popular IQOS and ZYN brands, is already available in 90 markets worldwide, and approximately 36.5 million adults are using these products.
While the outlook appears promising, PMI does acknowledge potential risks that could impact these projections. Factors such as regulatory changes, competitive pressures, and economic fluctuations pose ongoing challenges. However, PMI’s proactive approach in navigating these uncertainties, coupled with its commitment to innovation and consumer health, positions the company favorably in the long run.
In conclusion, Philip Morris International's reaffirmation of its EPS forecast is a strong indicator of its operational health and strategic direction. As the company continues to evolve and adapt to market dynamics, investors can remain cautiously optimistic about PMI's future growth prospects.