On October 22, 2024, Philip Morris International (PM, +10.47%) held its third-quarter earnings call for the period ending September 30, 2024. The call included prepared remarks, a question-and-answer session, and various participants.
The conference call began with the operator’s introduction, proceeding to James Bushnell, Vice President of Investor Relations and Financial Communications. Bushnell highlighted the release of a detailed press announcement earlier that day regarding the company’s third-quarter results, available on their website. The release included forward-looking statements and a glossary of terms related to smoke-free products and adjustments to U.S. GAAP measures.
Chief Financial Officer Emmanuel Babeau then presented the company’s performance, noting an excellent first half and a strong third quarter, characterized by double-digit organic growth in both revenue and earnings per share. Key factors included strong performances from IQOS and ZYN, substantial growth in U.S. volumes for ZYN, and high single-digit growth in the combustible segment led by strong pricing and cost actions. Babeau announced a raised full-year guidance reflecting these favorable outcomes.
Babeau detailed a robust organic revenue growth for Q3, driven by shipment volume, smoke-free mix, and pricing. Despite currency headwinds from various global currencies, efforts in pricing and cost management resulted in significant growth in operating income and earnings per share in dollar terms.
Discussions shifted to the company’s IQOS and ZYN products. IQOS showed strong growth in adjusted in-market sales, particularly in Japan and a resurgent Europe. Meanwhile, the ZYN brand displayed significant shipment volume growth, with efforts underway to address supply constraints.
Turning to sustainability, Babeau outlined progress in product transformation, emphasizing availability in 92 markets and targeting 100 by 2025. Sustainability efforts also included pursuing carbon neutrality and water stewardship across facilities.
Later, in the call’s Q&A segment, analysts raised questions regarding expected IQOS and ZYN developments, the strong 2024 cigarette volumes and pricing, and potential 2025 outlooks, among other topics. Babeau responded with detailed insights into the company’s strategic approaches and future expectations.
The call concluded with a brief acknowledgment of the company’s financial settlements, ongoing market strategies, and responses to some regulatory challenges. Bushnell thanked participants and invited further inquiries to the investor relations team.
