Philip Morris International Q2 2025 Earnings Conference Call Transcript

Philip Morris International reported Q2 2025 earnings, with CFO Emmanuel Babeau and IR head James Bushnell leading the call. The company's financial results were not disclosed in the provided transcript. Analysts from various firms participated in the call, including Goldman Sachs, Sanford Bernstein, Morgan Stanley, Barclays, Needham & Company, Stifel, and UBS. The presentation included forward-looking statements and projections of future results.

Philip Morris International (PMI) has released its financial results for the second quarter of 2025, showcasing robust performance across various metrics. The company, which is actively transitioning towards a smoke-free future, reported significant growth in net revenues, operating income, and earnings per share (EPS).

Financial Highlights
For the second quarter of 2025, PMI reported a 7.1% increase in net revenues, reaching $10.1 billion. The company's gross profit grew by 12.1% to $6.9 billion, while operating income saw a 7.8% rise to $3.7 billion. Reported diluted EPS increased by 26.6% to $1.95, with adjusted diluted EPS growing by 20.1% to $1.91, and by 18.9% excluding currency impacts [1].

Business and Operational Highlights
PMI's smoke-free business accounted for 41% of total net revenues, up by 2.9 percentage points compared to the same period last year. The company’s smoke-free products are now available in 97 markets, with shipment volumes up by 11.8%. The IQOS brand, a key component of PMI's smoke-free portfolio, exceeded $3 billion in quarterly net revenues and continues to gain market share globally. In Japan, IQOS reached over 10 million legal-age consumers, with a market share increase of 2.3 percentage points to 31.7%. In Europe, adjusted in-market sales growth reaccelerated to an estimated 9.1%, driven by strong performances in Italy, Germany, Greece, Romania, Bulgaria, and Spain [1].

Strategic Initiatives and Corporate Developments
PMI declared a regular quarterly dividend of $1.35 per share, or an annualized $5.40 per share. The company also highlighted its commitment to building and commercializing the VEEV brand in the e-vapor category, which is now available in 42 markets. Additionally, PMI's nicotine pouch brand, ZYN, saw significant growth in the U.S. and international markets [1].

Management's Perspective
Jacek Olczak, Chief Executive Officer, commented, "Our business delivered very strong results in the second quarter, with record net revenues and exceptional growth in operating income and adjusted diluted EPS. These results reflect excellent momentum in our multicategory smoke-free business, with a reacceleration of IQOS adjusted in-market sales growth and ZYN U.S. offtake growth, coupled with combustibles resilience" [1].

Future Outlook
PMI has raised its full-year guidance, forecasting reported diluted EPS to be in the range of $7.24 to $7.37. The company expects net revenue growth of around 6% to 8% on an organic basis and organic operating income growth of 11% to 12.5%. PMI also anticipates smoke-free product volume growth of 12% to 14%, partly offset by a forecasted cigarette volume decline of around 2% [1].

Reference List:
[1] https://www.tradingview.com/news/tradingview:6fdfff38f573a:0-philip-morris-international-reports-strong-q2-2025-results/
[2] https://www.pmi.com/investor-relations/press-releases-and-events/press-releases-overview/press-release-details/?newsId=29066