Reported Q: Q3 2024 Rev YoY: +8.4% EPS YoY: +50.0% Move: +0.65%
Philip Morris
PM
$163.54 0.65%
Exchange NYSE Sector Consumer Defensive Industry Tobacco
Q3 2024
Published: Oct 24, 2024

Company Status Snapshot

Fast view of the latest quarter outcome for PM

Reported

Report Date

Oct 24, 2024

Quarter Q3 2024

Revenue

9.91B

YoY: +8.4%

EPS

1.97

YoY: +50.0%

Market Move

+0.65%

Previous quarter: Q2 2024

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Earnings Highlights

  • Revenue of $9.91B up 8.4% year-over-year
  • EPS of $1.97 increased by 50% from previous year
  • Gross margin of 66.0%
  • Net income of 3.08B
  • "“We delivered excellent organic revenue growth of plus 11.6%, driven by shipment volume growth of plus 2.9%, positive smoke-free category mix and pricing.”" - Emmanuel Babeau, Chief Financial Officer
PM
Company PM

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Executive Summary

Philip Morris International reported a strong Q3 2024, led by double-digit momentum in the smoke-free portfolio and solid pricing across combustibles. Organic revenue rose 11.6% year over year, underpinned by a 2.9% shipment increase and a favorable mix shift toward IQOS, ZYN, and VEEV. Smoke-free revenues grew 16.8% organically with gross margins expanding around 200 bps year-to-date, contributing to a margin expansion of 90 bps in organic operating income and 110 bps in dollar terms. Management raised full-year guidance on volume, organic OI growth, and currency-neutral EPS, signaling confidence in continued strong top-line growth and cost discipline despite a modest currency headwind. The quarter featured meaningful execution across regions—Japan, Europe, and other international markets—along with ongoing capacity expansion for ZYN and continued development of IQOS ILUMA pilots. On the balance sheet, PMI generated substantial operating cash flow ($3.34B) and ended Q3 with $4.26B of cash and equivalents, while maintaining aggressive debt levels and a negative equity position driven by high financial leverage. The company faces near-term regulatory and competitive headwinds, including EU flavor ban transitions and ongoing illicit trade risks, but remains focused on a disciplined smoke-free transformation and capital allocation to deleveraging and shareholder returns.

Key Performance Indicators

Revenue
Increasing
9.91B
QoQ: 5.36% | YoY: 8.42%
Gross Profit
Increasing
6.55B
66.04% margin
QoQ: 11.58% | YoY: 9.32%
Operating Income
Increasing
3.65B
QoQ: 4.55% | YoY: 11.33%
Net Income
Increasing
3.08B
QoQ: 28.10% | YoY: 50.05%
EPS
Increasing
1.98
QoQ: 28.57% | YoY: 50.00%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2025 9,301.00 1.72 +5.8% View
Q4 2024 9,706.00 -0.37 +7.3% View
Q3 2024 9,911.00 1.97 +8.4% View
Q2 2024 9,407.00 1.54 +4.9% View
Q1 2024 8,793.00 1.38 +9.7% View