≡ Menu

Advertisement


Philip Morris International’s Revenue 2022 And Sales Breakdown

Revenue growth. Pixabay Image.

This article presents Philip Morris International (PMI)’s revenue, revenue breakdown by region and revenue breakdown by product category.

Readers who are interested in PMI’s cigarette and HTUs sales volume may visit this article – Philip Morris International’s Cigarette And HTU Sales By Country.

Let’s look at the following topics.

PMI’s Annual Net Revenue

PMI's annual net revenue

PMI’s annual net revenue

* Annual net revenue data is obtained directly from PMI’s income statements and excludes excise taxes.
* PMI’s fiscal year begins on Jan 1 and ends on Dec 31.

Philip Morris International’s annual net revenue dived significantly in fiscal 2020 to only $28.7 billion, about 4% lower from fiscal 2019.

However, PMI’s annual revenue increased slightly in fiscal 2021 to $31 billion, up 9% from fiscal 2020 or 5% from fiscal 2019.

Going into 2022, PMI has guided for an adjusted EPS of between $6.12 and $6.30 USD for fiscal 2022, representing a growth rate of around 1% to 4%, inclusive of the currency effect.

Based on the guided adjusted EPS, PMI’s revenue for fiscal 2022 is estimated to come in at $35.3 billion, about 13% higher from fiscal 2021.

The revenue estimate for fiscal 2022 is based on PMI’s historical adjusted net earnings margin of slightly above 27%.

That said, PMI’s net revenue has only managed to grow slightly over the years but the figure will grow significantly in fiscal 2022 if the estimated figure materializes.

PMI’s Annual Net Revenue By Region

PMI's annual net revenue by region

PMI’s annual net revenue by region

* Annual net revenue by region data is obtained directly from PMI’s earnings releases and excludes excise taxes.
* European Union’s key markets include France, Germany, Italy, Poland, and Spain.
* Eastern Europe’s key markets include Russia.
* Middle East & Africa’s key markets include Saudi Arabia and Turkey.
* South & Southeast Asia’s key markets include Indonesia and Philippines.
* East Asia & Australia’s key markets include Australia, Japan and Korea.
* Americas’ key markets include Argentina and Mexico.
* PMI’s fiscal year begins on Jan 1 and ends on Dec 31.

In terms of revenue breakdown, Philip Morris International’s operation spans 6 regions and they are European Union, Eastern Europe, Middle East & Africa, South & Southeast Asia, East Asia & Australia and Americas.

That said, PMI derives the most sales in the European Union region, at slightly above $12 billion USD in fiscal 2021.

Also, PMI’s net revenue from European Union grew 10% on average since fiscal 2018.

In particular, PMI’s 2021 revenue grew at a massive 15% from the prior year, representing one of the best regions for the company.

On the other hand, PMI’s net revenue from the Americas region was the least, reportedly at only $1.8 billion in fiscal 2021.

Moreover, PMI’s net revenue from this region also has been on a decline and the 2021 figure was nearly half of what was reported in fiscal 2018.

A similar downtrend was seen for regions such as the Middle East & Africa and South & Southeast Asia.

According to the chart, Philip Morris International earned only $3.3 billion and $4.4 billion in the Middle East & Africa and South & Southeast Asia, respectively, in fiscal 2021, a record low in the last 4 years.

While revenue growth has mostly been flat in Asia, it was a different case for Eash Asia & Australia.

As seen, PMI made nearly $6 billion USD in East Asia & Australia in fiscal 2021, up a massive 10% from 2020.

Another trend worth mentioning is that PMI’s revenue from Eastern Europe also has grown quite substantially in the last 4 years.

On average, PMI has managed to grow its net revenue by about 7% in Eastern Europe since fiscal 2018, reaching a record high of $3.5 billion USD as of 2021.

PMI’s Annual Net Revenue By Product Category

PMI's annual net revenue by product category

PMI’s annual net revenue by product category

* Annual net revenue by product category data is obtained directly from PMI’s earnings releases and excludes excise taxes.
* PMI’s fiscal year begins on Jan 1 and ends on Dec 31.

PMI’s revenue by product category can be divided into 2 categories, which are combustible products such as cigarettes and reduced-risk products (RRP) such as IQOS.

Over the last 4 years, Philip Morris International’s combustible products net revenue has been on a decline as seen in the chart above.

As of fiscal 2021, PMI derived only $22 billion of sales from combustible products, a decline of 8% from 2019 or 13% from 2018 but was up 1.5% from 2020.

Despite the decline, PMI’s combustible products sales such as cigarettes still account for a whopping 71% of the company’s total net revenue for the 2021 fiscal year.

However, this ratio has been on a decline, from 86% in 2018 to 71% in 2021, down more than 10ppts in just 4 years.

On the flipped side, PMI’s reduced-risk products net revenue has grown quite significantly since fiscal 2018 according to the chart.

As of fiscal 2021, PMI’s sales from the RRPs category rose to as much as $9.1 billion, an increase of 33% from 2020 or a massive 63% from 2019.

As a result, you can see that PMI’s reduced-risk products such as the IQOS which are usually consumed together with HTUs or heated tobacco units have gained a significant market share over the years based on this article, PMI’s heated tobacco units market share, notably to roughly 3% globally as of fiscal 2020.

Another trend worth mentioning is that PMI’s reduced-risk products revenue share in the company has grown from only 14% in 2018 to a massive 29% in 2021, a rise of more than 10 percentage points in just 4 years.

PMI’s Net Revenue By Quarter

PMI's quarterly net revenue

PMI’s quarterly net revenue

* Quarterly net revenue data is obtained directly from PMI’s income statements and excludes excise taxes.
* Quarterly net revenue data shown in the chart above is presented on a TTM basis which consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* PMI’s fiscal year begins on Jan 1 and ends on Dec 31.

The yearly plot may not clearly display Philip Morris International’s revenue trend.

Therefore, I created the TTM or trailing 12-month plot above which may better represent PMI’s revenue trend.

As seen in the chart, PMI’s net revenue declined significantly in fiscal 2020, down to only $28.7 billion in 4Q 2020, primarily driven by the disruption of the COVID-19 pandemic.

Post-2020, PMI’s net revenue recovered and surged, reaching as much as $31.3 billion USD as of fiscal 4Q 2021.

Will the uptrend continue?

Most likely, according to PMI’s guided adjusted EPS, the growth in fiscal 2022 will be between 1% and 4% from fiscal 2021, inclusive of the currency effect.

Therefore, PMI’s revenue uptrend is likely to continue into the end of fiscal 2022.

PMI’s Quarterly Net Revenue By Region – EU, East Asia, Australia And South Asia

PMI's quarterly net revenue by region (highest 3)

PMI’s quarterly net revenue by region (highest 3)

* Quarterly net revenue by region data is obtained directly from PMI’s earnings releases and excludes excise taxes.
* Quarterly net revenue by region data shown in the chart above is presented on a TTM basis which consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* Quarterly net revenue by region data includes both combustible and reduced-risk products.
* European Union’s key markets include France, Germany, Italy, Poland, and Spain.
* East Asia & Australia’s key markets include Australia, Japan and Korea.
* South & Southeast Asia’s key markets include Indonesia and Philippines.
* PMI’s fiscal year begins on Jan 1 and ends on Dec 31.

The European Union, East Asia & Australia, and South & Southeast Asia regions are the 3 biggest revenue sources for Philip Morris International.

For example, PMI’s net revenue in the EU topped more than $12 billion as of fiscal 4Q 2021, up a massive 15% from a year ago.

Moreover, PMI’s European Union net revenue also has been rising since fiscal 2018, reaching a record high in fiscal 2021.

The East Asia & Australia region is the second biggest revenue source for Philip Morris International.

As of fiscal 4Q 2021, PMI earned $6 billion on a TTM basis in East Asia & Australia, up 10% from a year ago.

In contrast, PMI’s South & Southeast Asia net revenue was flat at $4.4 billion in 4Q 2021 compared to that of the same quarter a year ago.

PMI’s net revenue from the South & Southeast Asia region seems to be on a decline even in a post-pandemic world after topping out at more than $5 billion USD in fiscal 2019.

In short, the COVID-19 pandemic seems to have little to no impact on PMI’s sales in European Union and East Asia & Australia.

However, PMI’s sales in the South & Southeast Asia region had continued to drop during the post-pandemic period, reaching a record low in fiscal 2021.

PMI’s Quarterly Net Revenue By Region – Eastern Europe, Middle East & Africa And Americas

PMI's quarterly net revenue by region (lowest 3)

PMI’s quarterly net revenue by region (lowest 3)

* Quarterly net revenue by region data is obtained directly from PMI’s earnings releases and excludes excise taxes.
* Quarterly net revenue by region data shown in the chart above is presented on a TTM basis which consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* Quarterly net revenue by region data includes both combustible and reduced-risk products.
* Eastern Europe’s key markets include Russia.
* Middle East & Africa’s key markets include Saudi Arabia and Turkey.
* Americas’ key markets include Argentina and Mexico.
* PMI’s fiscal year begins on Jan 1 and ends on Dec 31.

The Eastern Europe, Middle East & Africa, and Americas regions represent Philip Morris International’s smallest regions in terms of sales revenue.

As of fiscal 4Q 2021, PMI’s Eastern Europe net revenue came in at $3.5 billion USD which was up by about 3% compared to the same quarter a year ago.

However, PMI’s net revenue from Eastern Europe, mainly Russia, has risen significantly from 3 years ago, notably from $3 billion in 2018 to $3.5 billion as of 2021.

Both Middle East & Africa and Americas regions continue to see their sales revenue decline even in the post-pandemic period in 2021.

As of fiscal 4Q 2021, PMI reported only $3.3 billion and $1.8 billion of revenue for the Middle East & Africa and Americas regions, respectively.

Also worth mentioning is that PMI’s net revenue declined the fastest in the Americas region when the 4Q 2021 figure was nearly half of what was reported in fiscal 2018.

PMI’s Quarterly Net Revenue By Product Category

PMI's quarterly net revenue by product category

PMI’s quarterly net revenue by product category

* Quarterly net revenue by product category data is obtained directly from PMI’s earnings releases and excludes excise taxes.
* Quarterly net revenue by product category data shown in the chart above is presented on a TTM basis which consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* PMI’s fiscal year begins on Jan 1 and ends on Dec 31.

Similar to the yearly revenue chart which we saw earlier, Philip Morris International’s quarterly revenue has been on a rise in the RRPs category while revenue from the combustible products segment has been declining according to the chart above.

As of fiscal 2021 Q4, PMI’s net revenue from RRPs came in at $9.1 billion on a TTM basis, a record high in the last 4 years.

On the other hand, PMI’s net revenue from combustible products had declined to only $22 billion as of fiscal 2021 4Q, a drop of about $4 billion or 13% from fiscal 2018.

At these figures, PMI’s RRPs revenue share totaled 29% as of fiscal 4Q 2021 while the combustible products revenue share totaled 71%.

Since fiscal 2018, these ratios have been going in the opposite direction, with the RRPs category increasing while the combustible products category decreasing.

In short, PMI’s reduced-risk products have gained significant traction in terms of not only sales revenue growth but also market share growth on a global basis.

Conclusion

To recap, Philip Morris International’s total revenue has been rising steadily since fiscal 2018 and is estimated to come in at $35 billion by the end of fiscal 2022, a rise of 13% from fiscal 2021 based on the adjusted EPS guidance provided by the company.

PMI’s European Union region tops the chart at more than $12 billion of revenue, making it the biggest revenue source for the company.

Similarly, PMI’s combustible products segment also tops the chart at $22 billion of revenue in fiscal 2021.

However, this figure has been decreasing while PMI’s reduced-risk products revenue has been increasing, reaching $9.1 billion in fiscal 2021 and fiscal 4Q 2021 on a TTM basis.

Therefore, PMI’s smoke-free transformation plan seems to be working out for the company, having successfully reduced the combustible products revenue share from 85% to only 71% as of 4Q 2021 while increasing the reduced-risk products revenue share from 14% to 29% as of fiscal 4Q 2021.

References and Credits

1. All financial numbers in this article were obtained and referenced from PMI’s quarterly and annual statements which are available in PMI’s Reports And Filings.

2. Featured images in this article are obtained free and are used without any attribution from the following links: Pixabay

Top Statistics For Other Companies

Disclosure

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

If you find the information in this article helpful, please consider sharing it on social media and also provide a link back to this article from any website so that more articles like this one can be created in the future. Thank you!

{ 0 comments… add one }

Leave a Comment


X

Forgot Password?

Join Us