Thu, Apr 24, 12:27 PM (24 days ago)
### Summary of Philip Morris International Inc. (Ticker: PM) Q1 2025 Financial Health and Performance **Revenue and Profit Margins:** - **Net Revenues:** $9.3 billion, a 5.8% increase from Q1 2024. - **Operating Income:** $3.5 billion, a 16.4% increase from Q1 2024. - **Net Earnings:** $2.8 billion, a 25.2% increase from Q1 2024. - **Earnings per Share (EPS):** $1.72, a 24.6% increase from Q1 2024. **Cash Flow:** - **Net Cash Provided by (Used in) Operating Activities:** -$350 million, compared to $241 million in Q1 2024. - **Net Cash Provided by (Used in) Investing Activities:** -$434 million, compared to -$193 million in Q1 2024. - **Net Cash Provided by (Used in) Financing Activities:** $671 million, compared to $1,135 million in Q1 2024. **Earnings Changes:** - **Operating Income Increase:** Driven by favorable pricing and volume/mix, partly offset by higher marketing, administration, and research costs. - **Net Earnings Increase:** Due to higher operating income, a lower effective tax rate, and lower interest expense. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by favorable pricing and volume/mix, particularly in smoke-free products. - **Operating Income Growth:** Due to the same factors as revenue growth and a favorable comparison to 2024 restructuring charges. - **Net Earnings Growth:** Due to higher operating income, a lower effective tax rate, and lower interest expense. **Trends:** - **Smoke-Free Products:** Continued growth in shipment volume, with smoke-free volumes up by 14.4%. - **Cigarette Volumes:** Up by 1.1%, driven by the SSEA, CIS & MEA region. **Uncertainties:** - **Regulatory Environment:** Continued uncertainty regarding the regulatory environment for smoke-free products. - **Economic Conditions:** Potential impact of economic conditions on consumer demand. - **Competitive Landscape:** Intense competition and potential regulatory actions affecting the industry. **Future Operations Impact:** - **Investment in Smoke-Free Products:** Continued investment in smoke-free product manufacturing capacity. - **Capital Expenditures:** Expected to be around $1.5 billion in 2025, including investments in ZYN capacity in the U.S. - **Debt and Liquidity:** Continued access to global credit markets and committed revolving credit facilities to meet liquidity requirements.