Philip Morris International reported solid QQ3 2024 results with a total revenue of USD 9.911 billion and a strong gross margin of 66.0%. The quarter delivered robust profitability, with operating income of USD 3.654 billion and net income of USD 2.082 billion, translating to an EPS of USD 1.98. YoY and QoQ momentum were evident in the top and bottom lines: revenue grew 8.42% YoY and 4.68% QoQ, while net income rose approximately 50.1% YoY and 28.1% QoQ. The company generated meaningful operating cash flow of USD 3.342 billion and free cash flow of USD 2.963 billion, supporting consistent shareholder returns even as leverage remains pronounced.
Notwithstanding the earnings strength, PMI carries a heavily leveraged balance sheet: total debt USD 49.222 billion and net debt USD 44.964 billion, with total stockholders’ equity negative at USD -9.694 billion. This results in a debt-to-capitalization dynamic above 1.24 and a current ratio of 0.89, signaling liquidity and balance-sheet headwinds despite strong profitability. Management’s cadence on future earnings largely centers on sustaining pricing power, optimizing product mix toward smokefree offerings outside the United States, and ongoing cost discipline to manage leverage. The regulatory and currency backdrop in PMI’s 71-market footprint continues to be a critical driver of performance, with continued focus on price/mix, efficiency initiatives, and shareholder returns.