What drove PM's earnings beat in 2024?

Philip Morris' (PM) earnings beat in 2024 was driven by several key factors: 1. **Strong Performance of Smoke-Free Products**: The company's smoke-free products, particularly IQOS and ZYN, played a significant role in the earnings beat. Shipment volumes for these products increased, reflecting growing demand and market acceptance. 2. **Price Increases**: Price hikes contributed to the growth in earnings, despite a slight decline in shipment volumes. This reflects the company's successful pricing strategy. 3. **Currency Impact**: Although Philip Morris faced currency headwinds, the company's currency-neutral adjusted earnings per share (EPS) growth forecast remained intact. This suggests that the company effectively managed the impact of currency fluctuations on its earnings. 4. **Market Share Gains**: The company's rising market share in key regions, particularly in the smoke-free product category, contributed to the revenue growth and earnings beat. For example, IQOS and ZYN saw increased shipment volumes, which helped to offset any potential declines in traditional cigarette sales. In summary, Philip Morris' earnings beat in 2024 was driven by the strong performance of its smoke-free products, price increases, effective management of currency impacts, and gains in market share. These factors collectively contributed to the company's financial performance, surpassing market expectations.