Philip Morris International Reveals 1Q 2011 Financial Report

Published on May 10th, 2011 11:46
Philip Morris International report

Last week, Philip Morris International, the largest private tobacco company in the world, reported its financial results for the first quarter of 2011, raising its full year forecasts.

“We started 2011 with a strong performance, in spite devastating earthquake in Japan and challenging environment in North African and Asian countries”, declared Louis C. Camilleri, PMI chairman and CEO.

Camilleri noted that the company performed better than they expected, taking into account the forecasted declined in Spain, Ukraine, Mexico, Pakistan and Japan. That is why they decided to raise the EPS guidance for the full year.

PMI Chairman added that they are pleased with the financial results and look forward to the strong full year performance.

Cigarette Shipments of Key Global Brands

According to the report, the company shipped 207.9 billion cigarettes, up by 1.6 percent from the previous year period. In European Union, shipment volume fell by 7.3 percent, mostly due the declines in Greece, Poland and Spain and negative inventory strategies in Italy.

In Eastern Europe and Middle East region, cigarette shipments decreased by 0.8 percent, due to the unrest in Tunisia, Egypt, Libya and Syria; tax increases in Ukraine; negative effect of tax policy changes in Serbia, partially offset by the share growth in Turkey, Romania and Algeria.

In Asia, Philip Morris International’s cigarette sales grew by 14 percent resulted from the growth in Indonesia and the Philippines, partly offset by growing black market trade in Pakistan and lower demand in Japan.

In Americas region (excluding the USA) volumes declined by 5.5 percent mostly due to lower market in Mexico, and tax increase in several countries, partially offset by growth in Brazil and Argentina.

On the basis of organic volume, Philip Morris International’s sale volume decreased by 3.3 percent.

Aggregate sales of flagship Marlboro cigarettes brand reached 68.6 billion cigarettes, going down by 2.9 percent, mainly due to the 6.5 percent decline in the EU, resulting from shrinking market in Spain and Greece, and 8.2 percent decline in Americas region, affected by unfavorable conditions in Mexico. Marlboro share grew in Algeria, Egypt and Romania, due to the decreased black-market trade, as well as Korea and the Philippines.

Total sales of L&M at 20.4 billion cigarettes, grew by 1.5 percent, showing strong performance in all regions.

Shipment volumes of Chesterfield reached 8.0 billion cigarettes, going down by 0.4 percent, due to the lower market in Ukraine and Spain, mostly offset by growth in Portugal and Poland.

Total shipments of Parliament at 8.4 billion grew by 9.0 percent, resulted from the growth in all regions.

Total sales of Bond Street reached 9.5 billion cigarettes, going up by 2.3 percent driven by the increase in Kazakhstan and Russia.

Philip Morris International share of the global market was stable or growing in several major markets, including Australia, Indonesia, Korea, Thailand, Japan, the Philippines, Singapore, Algeria, Egypt, Turkey, Greece, Belgium, Germany, the Netherlands, France, Mexico and Brazil.

By Kevin Lawson, Staff Writer. Copyright © 2011 All rights reserved.

Related tags: philip morris | profits | tobacco company | big tobacco

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