Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: USD 9.911B (YoY +8.42%, QoQ +4.68%)
Gross Profit: USD 6.545B; gross margin 66.04% (YoY +9.32%, QoQ +6.89%)
Operating Income: USD 3.654B; operating margin 36.87% (YoY +11.33%, QoQ +6.10%)
EBITDA: USD 4.137B; EBITDA margin 41.74%
Net Income: USD 2.082B; net margin 31.10% (YoY +50.05%, QoQ +28.10%)
EPS: USD 1.98 (Diluted USD 1.97); YoY +50.00%, QoQ +28.57%
Cash Flow: Operating cash flow USD 3.342B; Free cash flow USD 2.963B; Capex USD 0.379B
Dividends Paid: USD 2.028B; Net cash provided by...
Financial Highlights
Revenue: USD 9.911B (YoY +8.42%, QoQ +4.68%)
Gross Profit: USD 6.545B; gross margin 66.04% (YoY +9.32%, QoQ +6.89%)
Operating Income: USD 3.654B; operating margin 36.87% (YoY +11.33%, QoQ +6.10%)
EBITDA: USD 4.137B; EBITDA margin 41.74%
Net Income: USD 2.082B; net margin 31.10% (YoY +50.05%, QoQ +28.10%)
EPS: USD 1.98 (Diluted USD 1.97); YoY +50.00%, QoQ +28.57%
Cash Flow: Operating cash flow USD 3.342B; Free cash flow USD 2.963B; Capex USD 0.379B
Dividends Paid: USD 2.028B; Net cash provided by financing activities: USD -2.981B
Balance Sheet: Total assets USD 66.89B; Total liabilities USD 74.605B; stockholders’ equity USD -9.694B; Debt USD 49.222B; Net debt USD 44.964B
Liquidity/Leverage: Current ratio 0.89; Quick ratio 0.49; Cash ratio 0.18; Interest coverage 19.33x; Dividend payout ratio 65.8%
Valuation/Market Metrics: P/E ~15.2x; P/S ~18.9x; P/FCF ~63.3x; Dividend yield ~1.08%; Enterprise value multiple ~56.19x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.91B |
8.42% |
4.68% |
| Gross Profit |
6.55B |
9.32% |
6.89% |
| Operating Income |
3.65B |
11.33% |
6.10% |
| Net Income |
3.08B |
50.05% |
28.10% |
| EPS |
1.98 |
50.00% |
28.57% |
Key Financial Ratios
operatingProfitMargin
36.9%
operatingCashFlowPerShare
$2.15
freeCashFlowPerShare
$1.91
dividendPayoutRatio
65.8%
Management Commentary
Transcript not provided in the available data. No earnings-call quotes or management Q&A were captured in the supplied material.
Forward Guidance
No explicit numeric guidance was issued in the QQ3 2024 materials. Management commentary (where applicable) emphasized resilience through pricing power, continued growth of smokefree products outside the US, and ongoing cost discipline. Given current currency dynamics and regulatory exposure across PMI’s 71 markets, investors should monitor: (1) pace of deleveraging and cash flow generation in the face of high leverage, (2) revenue mix shifts toward higher-margin smokefree products, (3) regulatory developments affecting tobacco volumes and taxation, and (4) currency headwinds affecting international operations. If PMI sustains healthy free cash flow and modest deleveraging, the outlook remains constructive for dividend sustainability and potential balance-sheet improvement over time.