Philip Morris (4I1.DE) Q4 2024 Earnings Report

Revenue and profitability overview (USD):
- Revenue: 9,706,000,000; YoY +7.28%; QoQ -2.07%
- Gross Profit: 6,283,000,000; YoY +12.78%; QoQ -4.00%; Gross Margin: 64.73%
- Operating Income: 3,259,000,000; YoY +5.06%; QoQ -10.81%; Operating Margin: 33.58%
- Net Income: -579,000,000; YoY -126.37%; QoQ -118.79%; Net Margin: -5.97%
- Earnings Per Share (EPS): -0.37; YoY -126.24%; QoQ -118.69%

Cash flow and capex:
- Net cash from operating activities: 4,002,000,000
- Capital expenditures: -278,000,000
- Free cash flow: 3,724,000,000 (approximately 38% of revenue)

Balance sheet and liquidity:
- Total assets: 61,784,000,000
- Total liabilities: 71,654,000,000; Total stockholders’ equity: -11,750,000,000
- Cash and cash equivalents: 4,216,000,000
- Net debt: 41,479,000,000; Debt total: 45,695,000,000
- Current ratio: 0.88; Quick ratio: 0.47; Cash ratio: 0.18

Efficiency and capital structure:
- Return on assets (ROA): -0.94%; Return on equity (ROE): 4.93% (negative equity context)
- Interest coverage: 3.45x
- Debt to capitalization: 1.346x; Long-term debt to capitalization: 1.386x
- Price-to-book and price-to-free-cash-flow indicators are affected by negative equity; current multiples reflect structural leverage and market perceptions of regulatory risk.

No earnings call transcript data provided in the dataset. As a result, management commentary, strategic themes, and qualitative guidance from the QQ4 2024 earnings call could not be integrated. Investors should rely on the disclosed financials and any published press releases for management perspective on price realization, smokefree product trajectory (HEETS), and currency impact. If a transcript becomes available, the highlights should be organized by themes such as strategy, operations, and market conditions with context and significance for investors.

QQ4 2024 presents a bifurcated view: PMI maintains robust gross and operating margins and generates substantial operating cash flow and free cash flow, which are favorable for deleveraging and potential shareholder return. However, the reported net loss and the negative equity position signal that profitability and balance-sheet health remain vulnerable in the near term. The key to a constructive investment stance lies in the company’s ability to translate strong operating cash flow into meaningful deleveraging, maintain pricing power in a currency- and regulation-driven landscape, and demonstrate a credible path to profitability through the smokefree portfolio and cost optimization. Investors should monitor currency movements, regulatory developments affecting excise taxes and smokefree products, and PMI’s execution on its smokefree strategy to assess long-term earnings durability and cash-generation potential.