Raises 2020 Full-Year Reported Diluted EPS Forecast to a Range of
2020 THIRD-QUARTER & YEAR-TO-DATE HIGHLIGHTS
2020 Third-Quarter
2020 Nine Months Year-to-Date
"We delivered stronger-than-anticipated results in the third quarter, despite the ongoing challenges of the pandemic, with adjusted diluted EPS growth of 5.6% on an organic basis," said
"The sustained momentum of IQOS was excellent, with an estimated 16.4 million total users at the end of September and smoke-free products accounting for nearly one-fourth of our total net revenues in the quarter. Furthermore, our combustible tobacco business recorded an improved sequential performance, supported by better underlying total industry volumes across both developed and emerging markets."
"Despite continued headwinds for our duty-free business and in
COVID-19: Business Continuity Update
Since the onset of the COVID-19 pandemic, PMI has undertaken a number of business continuity measures to mitigate potential disruption to its operations and route-to-market in order to preserve the availability of products to its customers and adult consumers.
Currently:
2020 FULL-YEAR FORECAST
|
Full-Year |
||||||||
|
2020 |
|
2019 |
Organic |
|||||
|
|
|
|
|
|
|
|
|
|
Reported Diluted EPS |
|
|
|
|
|
|
|
||
Tax items |
(0.06) |
|
(0.04) |
|
|
|
|
||
Asset impairment and exit costs |
0.04 |
|
0.23 |
|
|
|
|
||
Canadian tobacco litigation-related expense |
|
|
|
|
0.09 |
|
|
|
|
Loss on deconsolidation of RBH |
|
|
|
|
0.12 |
|
|
|
|
|
|
|
|
|
0.20 |
|
|
|
|
Fair value adjustment for equity security investments |
0.04 |
|
(0.02) |
|
|
|
|
||
Adjusted Diluted EPS |
|
|
|
|
|
|
|
||
Net earnings attributable to RBH |
|
|
|
|
(0.06) |
(a) |
|
|
|
Adjusted Diluted EPS |
|
|
|
(b) |
|
|
|
||
Currency |
0.32 |
|
|
|
|
|
|
||
Adjusted Diluted EPS, excluding currency |
|
|
|
(b) |
5% - 6% |
||||
|
|
|
|
|
|
|
|
|
|
(a) Net reported diluted EPS attributable to RBH from |
|||||||||
(b) Pro forma. |
PMI raises its full-year 2020 reported diluted EPS forecast to a range of
This revision primarily reflects:
Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately
2020 Full-Year Forecast Assumptions
This forecast assumes:
This forecast excludes the impact of any future acquisitions, unanticipated or unquantifiable asset impairment and exit cost charges, future changes in currency exchange rates, further developments related to the
Factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.
Conference Call
A conference call, hosted by
CONSOLIDATED SHIPMENT VOLUME & MARKET SHARE
PMI Shipment Volume by Region |
Third-Quarter |
Nine Months Year-to-Date |
||||||||||
(million units) |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
||||||
Cigarettes |
|
|
|
|
|
|
||||||
|
45,179 |
47,238 |
(4.4)% |
126,142 |
133,093 |
(5.2)% |
||||||
|
25,661 |
27,379 |
(6.3)% |
70,737 |
74,779 |
(5.4)% |
||||||
|
30,903 |
36,994 |
(16.5)% |
88,087 |
101,957 |
(13.6)% |
||||||
South & |
37,238 |
42,362 |
(12.1)% |
108,179 |
130,230 |
(16.9)% |
||||||
|
10,784 |
12,692 |
(15.0)% |
35,154 |
38,650 |
(9.0)% |
||||||
|
15,699 |
16,854 |
(6.9)% |
45,542 |
52,906 |
(13.9)% |
||||||
Total PMI |
165,464 |
183,519 |
(9.8)% |
473,841 |
531,615 |
(10.9)% |
||||||
|
|
|
|
|
|
|
||||||
Heated Tobacco Units |
|
|
|
|
|
|
||||||
|
5,181 |
3,474 |
49.1% |
14,069 |
8,810 |
59.7% |
||||||
|
4,882 |
3,858 |
26.5% |
14,374 |
8,213 |
75.0% |
||||||
|
179 |
588 |
(69.6)% |
834 |
2,061 |
(59.5)% |
||||||
South & |
10 |
— |
—% |
10 |
— |
—% |
||||||
|
8,601 |
7,976 |
7.8% |
24,799 |
23,253 |
6.6% |
||||||
|
114 |
89 |
28.1% |
316 |
202 |
56.4% |
||||||
Total PMI |
18,967 |
15,985 |
18.7% |
54,402 |
42,539 |
27.9% |
||||||
|
|
|
|
|
|
|
||||||
Cigarettes and Heated Tobacco Units |
|
|
|
|
|
|
||||||
|
50,360 |
50,712 |
(0.7)% |
140,211 |
141,903 |
(1.2)% |
||||||
|
30,543 |
31,237 |
(2.2)% |
85,111 |
82,992 |
2.6% |
||||||
|
31,082 |
37,582 |
(17.3)% |
88,921 |
104,018 |
(14.5)% |
||||||
South & |
37,248 |
42,362 |
(12.1)% |
108,189 |
130,230 |
(16.9)% |
||||||
|
19,385 |
20,668 |
(6.2)% |
59,953 |
61,903 |
(3.2)% |
||||||
|
15,813 |
16,943 |
(6.7)% |
45,858 |
53,108 |
(13.7)% |
||||||
Total PMI |
184,431 |
199,504 |
(7.6)% |
528,243 |
574,154 |
(8.0)% |
||||||
(1) Includes shipments to Altria Group, Inc., commencing in the third quarter of 2019, for sale in |
Third-Quarter
PMI's total shipment volume decreased by 7.6%, due to:
Impact of Inventory Movements
Excluding the net unfavorable impact of estimated distributor inventory movements of approximately 3.4 billion units, PMI’s total in-market sales declined by 5.8%, due to a 8.8% decline in cigarettes, partly offset by a 28.5% increase in heated tobacco units.
The net unfavorable impact of estimated distributor inventory movements of approximately 3.4 billion units reflected a net unfavorable impact of 1.8 billion cigarettes, mainly due to
Nine Months Year-to-Date
PMI's total shipment volume decreased by 8.0% (or by 7.8% on a like-for-like basis), due to:
partly offset by
Impact of Inventory Movements
The net impact of estimated distributor inventory movements was immaterial. On a like-for-like basis, PMI’s total in-market sales declined by 7.7%.
PMI Shipment Volume by Brand
PMI Shipment Volume by Brand |
Third-Quarter |
Nine Months Year-to-Date |
||||||||||
(million units) |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
||||||
Cigarettes |
|
|
|
|
|
|
||||||
|
61,581 |
68,859 |
(10.6)% |
175,638 |
196,883 |
(10.8)% |
||||||
L&M |
24,189 |
24,428 |
(1.0)% |
69,215 |
69,765 |
(0.8)% |
||||||
Chesterfield |
13,768 |
15,001 |
(8.2)% |
39,274 |
43,502 |
(9.7)% |
||||||
Philip Morris |
12,254 |
13,275 |
(7.7)% |
34,823 |
36,949 |
(5.8)% |
||||||
|
9,540 |
10,407 |
(8.3)% |
25,575 |
29,085 |
(12.1)% |
||||||
Sampoerna A |
7,999 |
8,756 |
(8.6)% |
23,801 |
26,012 |
(8.5)% |
||||||
|
6,441 |
7,687 |
(16.2)% |
18,481 |
21,099 |
(12.4)% |
||||||
Dji Sam Soe |
6,372 |
8,599 |
(25.9)% |
18,344 |
23,089 |
(20.6)% |
||||||
Lark |
3,846 |
4,955 |
(22.4)% |
12,059 |
15,575 |
(22.6)% |
||||||
Fortune |
2,263 |
3,215 |
(29.6)% |
7,008 |
9,702 |
(27.8)% |
||||||
Others |
17,211 |
18,337 |
(6.1)% |
49,623 |
59,954 |
(17.2)% |
||||||
Total Cigarettes |
165,464 |
183,519 |
(9.8)% |
473,841 |
531,615 |
(10.9)% |
||||||
Heated Tobacco Units (1) |
18,967 |
15,985 |
18.7% |
54,402 |
42,539 |
27.9% |
||||||
Total PMI |
184,431 |
199,504 |
(7.6)% |
528,243 |
574,154 |
(8.0)% |
||||||
(1) Includes shipments to Altria Group, Inc., commencing in the third quarter of 2019, for sale in |
||||||||||||
Note: Sampoerna A includes Sampoerna; Philip Morris includes Philip Morris/Dubliss; and Lark includes Lark Harmony. |
Third-Quarter
PMI's cigarette shipment volume of the following brands decreased:
The increase in PMI's heated tobacco unit shipment volume was mainly driven by the EU (notably
International Share of Market
PMI's total international market share (excluding
PMI's total international cigarette sales volume as a percentage of total industry cigarette sales volume was down by 1.3 points to 26.1%, mainly reflecting: out-switching to heated tobacco units, as well as lower cigarette market share and/or an unfavorable geographic mix impact, notably in
Nine Months Year-to-Date
PMI's cigarette shipment volume of the following brands decreased:
The increase in PMI's heated tobacco unit shipment volume was mainly driven by the EU (notably
International Share of Market
PMI's total international market share (excluding
PMI's total international cigarette sales volume as a percentage of total industry cigarette sales volume was down by 1.1 points to 25.9%, mainly reflecting: out-switching to heated tobacco units, as well as lower cigarette market share and/or an unfavorable geographic mix impact, notably in
CONSOLIDATED FINANCIAL SUMMARY
Third-Quarter
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
2019 |
|
Total |
Excl. |
|
Total |
Cur- |
Price |
Vol/ |
Cost/ |
||||||||||||||||||
(in millions) |
|
|
|
||||||||||||||||||||||||||
Net Revenues |
|
$ |
7,446 |
|
$ |
7,642 |
|
|
(2.6 |
)% |
(1.5 |
)% |
|
(196 |
) |
(78 |
) |
171 |
|
(275 |
) |
(14 |
) |
|
|||||
Cost of Sales |
|
|
(2,416 |
) |
|
(2,605 |
) |
|
7.3 |
% |
6.8 |
% |
|
189 |
|
13 |
|
— |
|
50 |
|
126 |
|
|
|||||
Marketing, Administration and Research Costs (1) |
|
|
(1,769 |
) |
|
(2,234 |
) |
|
20.8 |
% |
23.5 |
% |
|
465 |
|
(61 |
) |
— |
|
— |
|
526 |
|
|
|||||
Amortization of Intangibles |
|
|
(18 |
) |
|
(15 |
) |
|
(20.0 |
)% |
(13.3 |
)% |
|
(3 |
) |
(1 |
) |
— |
|
— |
|
(2 |
) |
|
|||||
Operating Income |
|
$ |
3,243 |
|
$ |
2,788 |
|
|
16.3 |
% |
20.9 |
% |
|
455 |
|
(127 |
) |
171 |
|
(225 |
) |
636 |
|
|
|||||
Asset Impairment & Exit Costs (2) |
|
|
— |
|
|
(22 |
) |
|
+100 |
% |
+100 |
% |
|
22 |
|
— |
|
— |
|
— |
|
22 |
|
|
|||||
Russia Excise and VAT Audit Charge (2) |
|
|
— |
|
|
(374 |
) |
|
+100 |
% |
+100 |
% |
|
374 |
|
— |
|
— |
|
— |
|
374 |
|
|
|||||
Adjusted Operating Income |
|
$ |
3,243 |
|
$ |
3,184 |
|
|
1.9 |
% |
5.8 |
% |
|
59 |
|
(127 |
) |
171 |
|
(225 |
) |
240 |
|
|
|||||
Adjusted Operating Income Margin |
|
|
43.6 |
% |
|
41.7 |
% |
|
1.9 |
pp |
3.1 |
pp |
|
|
|
|
|
|
|||||||||||
(1) Favorable Cost/Other variance includes the 2019 asset impairment and exit costs and |
|||||||||||||||||||||||||||||
(2) Included in Marketing, Administration and Research Costs above. |
|||||||||||||||||||||||||||||
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in |
Net revenues, excluding unfavorable currency, decreased by 1.5%, mainly reflecting: unfavorable volume/mix, primarily due to lower cigarette volume (mainly in
Operating income, excluding unfavorable currency, increased by 20.9%, notably reflecting a favorable comparison, shown in "Cost/Other," due to charges recorded in the in the third quarter of 2019 of
Excluding these charges and unfavorable currency, adjusted operating income increased by 5.8%, primarily reflecting: a favorable pricing variance; lower manufacturing costs (driven by productivity gains related to reduced-risk and combustible products); and lower marketing, administration and research costs (partly driven by cost efficiencies); partially offset by unfavorable volume/mix, due to the same factors as for net revenues noted above.
Adjusted operating income margin, excluding currency, increased by 3.1 points to 44.8%, as detailed in Schedule 8.
Nine Months Year-to-Date
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
Cost/ |
|||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net Revenues |
|
$ |
21,250 |
|
$ |
22,092 |
|
|
(3.8 |
)% |
(1.7 |
)% |
|
(842 |
) |
(469 |
) |
666 |
|
(798 |
) |
(241 |
) |
||||||
Cost of Sales |
|
|
(6,997 |
) |
|
(7,735 |
) |
|
9.5 |
% |
7.3 |
% |
|
738 |
|
173 |
|
— |
|
318 |
|
247 |
|
||||||
Marketing, Administration and Research Costs (2) |
|
|
(5,435 |
) |
|
(6,282 |
) |
|
13.5 |
% |
15.6 |
% |
|
847 |
|
(131 |
) |
— |
|
— |
|
978 |
|
||||||
Amortization of Intangibles |
|
|
(55 |
) |
|
(50 |
) |
|
(10.0 |
)% |
(10.0 |
)% |
|
(5 |
) |
— |
|
— |
|
— |
|
(5 |
) |
||||||
Operating Income |
|
$ |
8,763 |
|
$ |
8,025 |
|
|
9.2 |
% |
14.5 |
% |
|
738 |
|
(427 |
) |
666 |
|
(480 |
) |
979 |
|
||||||
Asset Impairment & Exit Costs (3) |
|
|
(71 |
) |
|
(65 |
) |
|
(9.2 |
)% |
(9.2 |
)% |
|
(6 |
) |
— |
|
— |
|
— |
|
(6 |
) |
||||||
Canadian Tobacco Litigation-Related Expense (3) |
|
|
— |
|
|
(194 |
) |
|
+100 |
% |
+100 |
% |
|
194 |
|
— |
|
— |
|
— |
|
194 |
|
||||||
Loss on Deconsolidation of RBH (3) |
|
|
— |
|
|
(239 |
) |
|
+100 |
% |
+100 |
% |
|
239 |
|
— |
|
— |
|
— |
|
239 |
|
||||||
Russia Excise and VAT Audit Charge (3) |
|
|
— |
|
|
(374 |
) |
|
+100 |
% |
+100 |
% |
|
374 |
|
— |
|
— |
|
— |
|
374 |
|
||||||
Adjusted Operating Income |
|
$ |
8,834 |
|
$ |
8,897 |
|
|
(0.7 |
)% |
4.1 |
% |
|
(63 |
) |
(427 |
) |
666 |
|
(480 |
) |
178 |
|
||||||
Adjusted Operating Income Margin |
|
|
41.6 |
% |
|
40.3 |
% |
|
1.3 |
pp |
2.3 |
pp |
|
|
|
|
|
|
|||||||||||
(1) Cost/Other variance includes the impact of the RBH deconsolidation. |
|||||||||||||||||||||||||||||
(2) Favorable Cost/Other variance includes the 2019 Canadian tobacco litigation-related expense, the 2019 loss on deconsolidation of RBH, the 2019 and 2020 asset impairment and exit costs, the 2019 Russia excise and VAT audit charge, and the impact of the RBH deconsolidation. |
|||||||||||||||||||||||||||||
(3) Included in Marketing, Administration and Research Costs above. |
|||||||||||||||||||||||||||||
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in |
Net revenues, excluding unfavorable currency, decreased by 1.7%, reflecting: unfavorable volume/mix, primarily due to lower cigarette volume (mainly in
Operating income, excluding unfavorable currency, increased by 14.5%, notably reflecting a favorable comparison, shown in "Cost/Other," of charges recorded September year-to-date 2020 of
Excluding these charges and unfavorable currency, adjusted operating income increased by 4.1%, primarily reflecting: a favorable pricing variance; lower manufacturing costs (driven by productivity gains related to reduced-risk and combustible products) and lower marketing, administration and research costs (partly driven by cost efficiencies); partially offset by unfavorable volume/mix, mainly due to lower cigarette volume (primarily in
Adjusted operating income margin, excluding currency, increased by 2.3 points to 42.6%, as detailed in Schedule 8, or by 2.6 points to 42.6% on a like-for-like basis, as detailed in Schedule 9.
EUROPEAN UNION REGION
Third-Quarter
Financial Summary - |
|
|
Change |
Variance |
|||||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
2,950 |
|
$ |
2,645 |
|
|
11.5 |
% |
10.0 |
% |
|
305 |
|
40 |
|
82 |
|
183 |
|
— |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
1,588 |
|
$ |
1,255 |
|
|
26.5 |
% |
24.7 |
% |
|
333 |
|
23 |
|
82 |
|
158 |
|
70 |
|
||||||
Asset Impairment & Exit Costs |
|
|
— |
|
|
— |
|
|
— |
% |
— |
% |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||
Adjusted Operating Income |
|
$ |
1,588 |
|
$ |
1,255 |
|
|
26.5 |
% |
24.7 |
% |
|
333 |
|
23 |
|
82 |
|
158 |
|
70 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
53.8 |
% |
|
47.4 |
% |
|
6.4 |
pp |
6.4 |
pp |
|
|
|
|
|
|
Net revenues, excluding favorable currency, increased by 10.0%, reflecting: favorable volume/mix, mainly driven by higher heated tobacco unit volume (notably in
Operating income, excluding favorable currency, increased by 24.7%, reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; a favorable pricing variance; lower manufacturing costs across the Region; and lower marketing, administration and research costs.
Adjusted operating income margin, excluding currency, increased by 6.4 points to 53.8%, as detailed in Schedule 8.
Nine Months Year-to-Date
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
7,960 |
|
$ |
7,381 |
|
|
7.8 |
% |
9.6 |
% |
|
579 |
|
(130 |
) |
142 |
|
567 |
|
— |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
3,924 |
|
$ |
3,346 |
|
|
17.3 |
% |
20.5 |
% |
|
578 |
|
(107 |
) |
142 |
|
534 |
|
9 |
|
||||||
Asset Impairment & Exit Costs (1) |
|
|
(27 |
) |
|
— |
|
|
— |
% |
— |
% |
|
(27 |
) |
— |
|
— |
|
— |
|
(27 |
) |
||||||
Adjusted Operating Income |
|
$ |
3,951 |
|
$ |
3,346 |
|
|
18.1 |
% |
21.3 |
% |
|
605 |
|
(107 |
) |
142 |
|
534 |
|
36 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
49.6 |
% |
|
45.3 |
% |
|
4.3 |
pp |
4.9 |
pp |
|
|
|
|
|
|
|||||||||||
(1) Included in marketing, administration and research costs at the consolidated operating income level. |
Net revenues, excluding unfavorable currency, increased by 9.6%, reflecting: favorable volume/mix, mainly driven by higher heated tobacco unit volume across the Region (notably in the
Operating income, excluding unfavorable currency, increased by 20.5%, mainly reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; a favorable pricing variance; and lower manufacturing costs (notably in
Excluding asset impairment, exit costs and unfavorable currency, adjusted operating income increased by 21.3%. Adjusted operating income margin, excluding currency, increased by 4.9 points to 50.2%, as detailed in Schedule 8.
Total Market, PMI Shipment & Market Share Commentaries
European Union Key Data |
Third-Quarter |
Nine Months Year-to-Date |
||||||||||||||||
|
|
|
|
|
Change |
|
|
|
|
|
Change |
|||||||
|
2020 |
|
2019 |
|
% / pp |
|
2020 |
|
2019 |
|
% / pp |
|||||||
Total Market (billion units) |
131.5 |
132.3 |
(0.6 |
)% |
356.3 |
363.9 |
(2.1 |
)% |
||||||||||
|
|
|
|
|
|
|
||||||||||||
PMI Shipment Volume (million units) |
|
|
|
|
|
|
||||||||||||
Cigarettes |
45,179 |
47,238 |
(4.4 |
)% |
126,142 |
133,093 |
(5.2 |
)% |
||||||||||
Heated Tobacco Units |
5,181 |
3,474 |
49.1 |
% |
14,069 |
8,810 |
59.7 |
% |
||||||||||
Total EU |
50,360 |
50,712 |
(0.7 |
)% |
140,211 |
141,903 |
(1.2 |
)% |
||||||||||
|
|
|
|
|
|
|
||||||||||||
PMI Market Share |
|
|
|
|
|
|
||||||||||||
|
17.7 |
% |
18.0 |
% |
(0.3 |
) |
17.7 |
% |
18.1 |
% |
(0.4 |
) |
||||||
L&M |
6.0 |
% |
6.7 |
% |
(0.7 |
) |
6.3 |
% |
6.7 |
% |
(0.4 |
) |
||||||
Chesterfield |
5.5 |
% |
5.7 |
% |
(0.2 |
) |
5.6 |
% |
5.8 |
% |
(0.2 |
) |
||||||
Philip Morris |
2.5 |
% |
2.7 |
% |
(0.2 |
) |
2.5 |
% |
2.7 |
% |
(0.2 |
) |
||||||
HEETS |
3.9 |
% |
2.4 |
% |
1.5 |
|
3.9 |
% |
2.3 |
% |
1.6 |
|
||||||
Others |
3.1 |
% |
3.1 |
% |
— |
|
3.1 |
% |
3.2 |
% |
(0.1 |
) |
||||||
Total EU |
38.7 |
% |
38.6 |
% |
0.1 |
|
39.1 |
% |
38.8 |
% |
0.3 |
|
Third-Quarter
The estimated total market in the EU decreased by 0.6% to 131.5 billion units, notably driven by:
partly offset by
PMI's total shipment volume decreased by 0.7% to 50.4 billion units, reflecting:
partly offset by
Nine Months Year-to-Date
The estimated total market in the EU decreased by 2.1% to 356.3 billion units, notably due to:
partly offset by
PMI's total shipment volume decreased by 1.2% to 140.2 billion units, reflecting:
partly offset by
Third-Quarter
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
899 |
|
$ |
899 |
|
|
— |
% |
7.3 |
% |
|
— |
|
(66 |
) |
64 |
|
2 |
|
— |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income (Loss) |
|
$ |
245 |
|
$ |
(101 |
) |
|
+100 |
% |
+100 |
% |
|
346 |
|
(105 |
) |
64 |
|
17 |
|
370 |
|
||||||
Asset Impairment & Exit Costs |
|
|
— |
|
|
— |
|
|
— |
% |
— |
% |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||
Russia Excise and VAT Audit Charge (1) |
|
|
— |
|
|
(374 |
) |
|
+100 |
% |
+100 |
% |
|
374 |
|
— |
|
— |
|
— |
|
374 |
|
||||||
Adjusted Operating Income |
|
$ |
245 |
|
$ |
273 |
|
|
(10.3 |
)% |
28.2 |
% |
|
(28 |
) |
(105 |
) |
64 |
|
17 |
|
(4 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
27.3 |
% |
|
30.4 |
% |
|
(3.1 |
)pp |
5.9 |
pp |
|
|
|
|
|
|
|||||||||||
(1) Included in marketing, administration and research costs at the consolidated operating income level. |
Net revenues, excluding unfavorable currency, increased by 7.3%, mainly reflecting: a favorable pricing variance, driven by higher combustible pricing (predominantly in
Operating income, excluding unfavorable currency, increased by +100%, notably reflecting a favorable comparison, shown in "Cost/Other," due to a charge recorded in the third quarter of 2019 of
Excluding this charge and unfavorable currency, adjusted operating income increased by 28.2%, reflecting: a favorable pricing variance; favorable volume/mix, reflecting the same drivers as for net revenues noted above; and lower manufacturing costs (mainly in
Adjusted operating income margin, excluding currency, increased by 5.9 points to 36.3%, as detailed in Schedule 8.
Nine Months Year-to-Date
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
2,470 |
|
$ |
2,300 |
|
|
7.4 |
% |
13.7 |
% |
|
170 |
|
(145 |
) |
105 |
|
210 |
|
— |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
610 |
|
$ |
284 |
|
|
+100 |
% |
+100 |
% |
|
326 |
|
(208 |
) |
105 |
|
156 |
|
273 |
|
||||||
Asset Impairment & Exit Costs (1) |
|
|
(7 |
) |
|
— |
|
|
— |
% |
— |
% |
|
(7 |
) |
— |
|
— |
|
— |
|
(7 |
) |
||||||
Russia Excise and VAT Audit Charge (1) |
|
|
— |
|
|
(374 |
) |
|
+100 |
% |
+100 |
% |
|
374 |
|
— |
|
— |
|
— |
|
374 |
|
||||||
Adjusted Operating Income |
|
$ |
617 |
|
$ |
658 |
|
|
(6.2 |
)% |
25.4 |
% |
|
(41 |
) |
(208 |
) |
105 |
|
156 |
|
(94 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
25.0 |
% |
|
28.6 |
% |
|
(3.6 |
)pp |
2.9 |
pp |
|
|
|
|
|
|
|||||||||||
(1) Included in marketing, administration and research costs at the consolidated operating income level. |
Net revenues, excluding unfavorable currency, increased by 13.7%, reflecting: favorable volume/mix, predominantly driven by higher heated tobacco unit volume across the Region (notably in
Operating income, excluding unfavorable currency, increased by +100%, notably reflecting a favorable comparison, shown in "Cost/Other," primarily due to a charge recorded in 2019 of
Excluding charges and unfavorable currency, adjusted operating income increased by 25.4%, reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; and a favorable pricing variance; partly offset by higher marketing, administration and research costs (partly related to increased investments behind reduced-risk products, notably in
Adjusted operating income margin, excluding currency, increased by 2.9 points to 31.5%, as detailed in Schedule 8.
Total Market, PMI Shipment & Market Share Commentaries
PMI Shipment Volume |
Third-Quarter |
Nine Months Year-to-Date |
||||||||||
(million units) |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
||||||
Cigarettes |
25,661 |
27,379 |
(6.3)% |
70,737 |
74,779 |
(5.4)% |
||||||
Heated Tobacco Units |
4,882 |
3,858 |
26.5% |
14,374 |
8,213 |
75.0% |
||||||
Total |
30,543 |
31,237 |
(2.2)% |
85,111 |
82,992 |
2.6% |
Third-Quarter
The estimated total market in
PMI's total shipment volume decreased by 2.2% to 30.5 billion units, notably due to:
Nine Months Year-to-Date
The estimated total market in
PMI's total shipment volume increased by 2.6% to 85.1 billion units, mainly due to:
partly offset by
Third-Quarter
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
768 |
|
$ |
1,127 |
|
|
(31.9 |
)% |
(29.4 |
)% |
|
(359 |
) |
(28 |
) |
6 |
|
(325 |
) |
(12 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
261 |
|
$ |
519 |
|
|
(49.7 |
)% |
(46.8 |
)% |
|
(258 |
) |
(15 |
) |
6 |
|
(271 |
) |
22 |
|
||||||
Asset Impairment & Exit Costs |
|
|
— |
|
|
— |
|
|
— |
% |
— |
% |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||
Adjusted Operating Income |
|
$ |
261 |
|
$ |
519 |
|
|
(49.7 |
)% |
(46.8 |
)% |
|
(258 |
) |
(15 |
) |
6 |
|
(271 |
) |
22 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
34.0 |
% |
|
46.1 |
% |
|
(12.1 |
)pp |
(11.4 |
)pp |
|
|
|
|
|
|
Net revenues, excluding unfavorable currency, decreased by 29.4%, primarily reflecting: unfavorable volume/mix, mainly due to lower cigarette and heated tobacco unit volume in PMI Duty Free; partly offset by a favorable pricing variance, driven by PMI Duty Free and
Operating income, excluding unfavorable currency, decreased by 46.8%, notably reflecting: unfavorable volume/mix, due to the same factor as for net revenues noted above; partly offset by lower marketing, administration and research costs; lower manufacturing costs; and a favorable pricing variance.
Adjusted operating income margin, excluding currency, decreased by 11.4 points to 34.7%, as detailed in Schedule 8.
Nine Months Year-to-Date
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
2,348 |
|
$ |
3,058 |
|
|
(23.2 |
)% |
(21.7 |
)% |
|
(710 |
) |
(46 |
) |
123 |
|
(736 |
) |
(51 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
819 |
|
$ |
1,304 |
|
|
(37.2 |
)% |
(35.0 |
)% |
|
(485 |
) |
(29 |
) |
123 |
|
(565 |
) |
(14 |
) |
||||||
Asset Impairment & Exit Costs (1) |
|
|
(9 |
) |
|
— |
|
|
— |
% |
— |
% |
|
(9 |
) |
— |
|
— |
|
— |
|
(9 |
) |
||||||
Adjusted Operating Income |
|
$ |
828 |
|
$ |
1,304 |
|
|
(36.5 |
)% |
(34.3 |
)% |
|
(476 |
) |
(29 |
) |
123 |
|
(565 |
) |
(5 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
35.3 |
% |
|
42.6 |
% |
|
(7.3 |
)pp |
(6.8 |
)pp |
|
|
|
|
|
|
|||||||||||
(1) Included in marketing, administration and research costs at the consolidated operating income level. |
Net revenues, excluding unfavorable currency, decreased by 21.7%, reflecting: unfavorable volume/mix, mainly due to lower cigarette volume (predominantly in PMI Duty Free and
Operating income, excluding unfavorable currency, decreased by 35.0%, mainly reflecting: unfavorable volume/mix, predominantly due to lower cigarette and heated tobacco unit volume in PMI Duty Free; and unfavorable "Cost/Other," mainly due to lower fees for certain distribution rights, as noted above for net revenues; partially offset by a favorable pricing variance; and lower marketing, administration and research costs.
Excluding asset impairment, exit costs and unfavorable currency, adjusted operating income decreased by 34.3%. Adjusted operating income margin, excluding currency, decreased by 6.8 points to 35.8%, as detailed in Schedule 8.
Total Market, PMI Shipment & Market Share Commentaries
PMI Shipment Volume |
Third-Quarter |
Nine Months Year-to-Date |
||||||||||
(million units) |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
||||||
Cigarettes |
30,903 |
36,994 |
(16.5)% |
88,087 |
101,957 |
(13.6)% |
||||||
Heated Tobacco Units |
179 |
588 |
(69.6)% |
834 |
2,061 |
(59.5)% |
||||||
Total |
31,082 |
37,582 |
(17.3)% |
88,921 |
104,018 |
(14.5)% |
Third-Quarter
The estimated total market in the
PMI's total shipment volume decreased by 17.3% to 31.1 billion units, notably due to:
partly offset by
Nine Months Year-to-Date
The estimated total market in the
PMI's total shipment volume decreased by 14.5% to 88.9 billion units, notably due to:
SOUTH &
Third-Quarter
Financial Summary - |
|
|
|
|
Change |
|
Variance |
|||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
|||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net Revenues |
|
$ |
1,071 |
|
$ |
1,246 |
|
|
(14.0 |
)% |
(14.3 |
)% |
|
(175 |
) |
3 |
|
|
(90 |
) |
(88 |
) |
— |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Operating Income |
|
$ |
402 |
|
$ |
539 |
|
|
(25.4 |
)% |
(24.9 |
)% |
|
(137 |
) |
(3 |
) |
|
(90 |
) |
(60 |
) |
16 |
|
||||||
Asset Impairment & Exit Costs |
|
|
— |
|
|
— |
|
|
— |
% |
— |
% |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
||||||
Adjusted Operating Income |
|
$ |
402 |
|
$ |
539 |
|
|
(25.4 |
)% |
(24.9 |
)% |
|
(137 |
) |
(3 |
) |
|
(90 |
) |
(60 |
) |
16 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Adjusted Operating Income Margin |
|
|
37.5 |
% |
|
43.3 |
% |
|
(5.8 |
)pp |
(5.4 |
)pp |
|
|
|
|
|
|
Net revenues, excluding favorable currency, decreased by 14.3%, reflecting: an unfavorable pricing variance, due to
Operating income, excluding unfavorable currency, decreased by 24.9%, primarily reflecting: an unfavorable pricing variance; and unfavorable volume/mix, due to the same factors as for net revenues noted above; partly offset by lower marketing, administration and research costs (notably in
Adjusted operating income margin, excluding currency, decreased by 5.4 points to 37.9%, as detailed in Schedule 8.
Nine Months Year-to-Date
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
3,211 |
|
$ |
3,607 |
|
|
(11.0 |
)% |
(10.3 |
)% |
|
(396 |
) |
(24 |
) |
54 |
|
(426 |
) |
— |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
1,290 |
|
$ |
1,471 |
|
|
(12.3 |
)% |
(12.3 |
)% |
|
(181 |
) |
— |
|
54 |
|
(296 |
) |
61 |
|
||||||
Asset Impairment & Exit Costs (1) |
|
|
(11 |
) |
|
(20 |
) |
|
45.0 |
% |
45.0 |
% |
|
9 |
|
— |
|
— |
|
— |
|
9 |
|
||||||
Adjusted Operating Income |
|
$ |
1,301 |
|
$ |
1,491 |
|
|
(12.7 |
)% |
(12.7 |
)% |
|
(190 |
) |
— |
|
54 |
|
(296 |
) |
52 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
40.5 |
% |
|
41.3 |
% |
|
(0.8 |
)pp |
(1.1 |
)pp |
|
|
|
|
|
|
|||||||||||
(1) Included in marketing, administration and research costs at the consolidated operating income level. |
Net revenues, excluding unfavorable currency, decreased by 10.3%, reflecting: unfavorable volume/mix, primarily due to lower cigarette volume in
Operating income, excluding currency, decreased by 12.3%, mainly reflecting: unfavorable volume/mix, due to the same factors as for net revenues noted above; partially offset by a favorable pricing variance; and lower marketing, administration and research costs (notably in
Excluding asset impairment, exit costs and currency, adjusted operating income decreased by 12.7%. Adjusted operating income margin, excluding currency, decreased by 1.1 points to 40.2%, as detailed in Schedule 8.
Total Market, PMI Shipment & Market Share Commentaries
PMI Shipment Volume |
Third-Quarter |
Nine Months Year-to-Date |
||||||||||
(million units) |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
||||||
Cigarettes |
37,238 |
42,362 |
(12.1)% |
108,179 |
130,230 |
(16.9)% |
||||||
Heated Tobacco Units |
10 |
— |
—% |
10 |
— |
—% |
||||||
Total South & |
37,248 |
42,362 |
(12.1)% |
108,189 |
130,230 |
(16.9)% |
Third-Quarter
The estimated total market in South &
partly offset by
PMI's total shipment volume decreased by 12.1% to 37.2 billion units, notably due to:
partly offset by
Nine Months Year-to-Date
The estimated total market in South &
PMI's total shipment volume decreased by 16.9% to 108.2 billion units, notably due to:
Third-Quarter
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
1,358 |
|
$ |
1,252 |
|
|
8.5 |
% |
7.0 |
% |
|
106 |
|
18 |
|
92 |
|
(4 |
) |
— |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
637 |
|
$ |
451 |
|
|
41.2 |
% |
37.5 |
% |
|
186 |
|
17 |
|
92 |
|
(38 |
) |
115 |
|
||||||
Asset Impairment & Exit Costs |
|
|
— |
|
|
— |
|
|
— |
% |
— |
% |
|
— |
|
— |
|
— |
|
— |
|
— |
|
||||||
Adjusted Operating Income |
|
$ |
637 |
|
$ |
451 |
|
|
41.2 |
% |
37.5 |
% |
|
186 |
|
17 |
|
92 |
|
(38 |
) |
115 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
46.9 |
% |
|
36.0 |
% |
|
10.9 |
pp |
10.3 |
pp |
|
|
|
|
|
|
Net revenues, excluding favorable currency, increased by 7.0%, reflecting: a favorable pricing variance, primarily driven by higher heated tobacco and combustible pricing in
Operating income, excluding favorable currency, increased by 37.5%, mainly reflecting: a favorable pricing variance; lower manufacturing costs (primarily related to
Adjusted operating income margin, excluding currency, increased by 10.3 points to 46.3%, as detailed in Schedule 8.
Nine Months Year-to-Date
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
4,045 |
|
$ |
4,094 |
|
|
(1.2 |
)% |
(1.1 |
)% |
|
(49 |
) |
(3 |
) |
135 |
|
(181 |
) |
— |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
1,792 |
|
$ |
1,520 |
|
|
17.9 |
% |
17.8 |
% |
|
272 |
|
2 |
|
135 |
|
(134 |
) |
269 |
|
||||||
Asset Impairment & Exit Costs (1) |
|
|
(13 |
) |
|
— |
|
|
— |
% |
— |
% |
|
(13 |
) |
— |
|
— |
|
— |
|
(13 |
) |
||||||
Adjusted Operating Income |
|
$ |
1,805 |
|
$ |
1,520 |
|
|
18.8 |
% |
18.6 |
% |
|
285 |
|
2 |
|
135 |
|
(134 |
) |
282 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
44.6 |
% |
|
37.1 |
% |
|
7.5 |
pp |
7.4 |
pp |
|
|
|
|
|
|
|||||||||||
(1) Included in marketing, administration and research costs at the consolidated operating income level. |
Net revenues, excluding unfavorable currency, decreased by 1.1%, reflecting: unfavorable volume/mix, mainly due to lower cigarette volume (primarily in
Operating income, excluding favorable currency, increased by 17.8%, mainly reflecting: lower marketing, administration and research costs (notably in
Excluding asset impairment, exit costs and favorable currency, adjusted operating income increased by 18.6%. Adjusted operating income margin, excluding currency, increased by 7.4 points to 44.5%, as detailed in Schedule 8.
Total Market, PMI Shipment & Market Share Commentaries
PMI Shipment Volume |
Third-Quarter |
Nine Months Year-to-Date |
||||||||||
(million units) |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
||||||
Cigarettes |
10,784 |
12,692 |
(15.0)% |
35,154 |
38,650 |
(9.0)% |
||||||
Heated Tobacco Units |
8,601 |
7,976 |
7.8% |
24,799 |
23,253 |
6.6% |
||||||
Total |
19,385 |
20,668 |
(6.2)% |
59,953 |
61,903 |
(3.2)% |
Third-Quarter
The estimated total market in
partly offset by
PMI's total shipment volume decreased by 6.2% to 19.4 billion units, notably in:
Nine Months Year-to-Date
The estimated total market in
partly offset by
PMI's total shipment volume decreased by 3.2% to 60.0 billion units, notably in:
Third-Quarter
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
400 |
|
$ |
473 |
|
|
(15.4 |
)% |
(5.9 |
)% |
|
(73 |
) |
(45 |
) |
17 |
|
(43 |
) |
(2 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
110 |
|
$ |
125 |
|
|
(12.0 |
)% |
23.2 |
% |
|
(15 |
) |
(44 |
) |
17 |
|
(31 |
) |
43 |
|
||||||
Asset Impairment & Exit Costs (1) |
|
|
— |
|
|
(22 |
) |
|
+100 |
% |
+100 |
% |
|
22 |
|
— |
|
— |
|
— |
|
22 |
|
||||||
Adjusted Operating Income |
|
$ |
110 |
|
$ |
147 |
|
|
(25.2 |
)% |
4.8 |
% |
|
(37 |
) |
(44 |
) |
17 |
|
(31 |
) |
21 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
27.5 |
% |
|
31.1 |
% |
|
(3.6 |
)pp |
3.5 |
pp |
|
|
|
|
|
|
|||||||||||
(1) Included in marketing, administration and research costs at the consolidated operating income level. |
|||||||||||||||||||||||||||||
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in |
Net revenues, excluding unfavorable currency, decreased by 5.9%, mainly reflecting: unfavorable volume/mix, notably due to lower cigarette volume in
Operating income, excluding unfavorable currency, increased by 23.2%, notably reflecting a favorable comparison, shown in "Cost/Other," due to asset impairment and exit costs recorded in the third quarter of 2019 associated with a plant closure in
Excluding asset impairment, exit costs and unfavorable currency, adjusted operating income increased by 4.8%, primarily reflecting: a favorable pricing variance; and lower marketing, administration and research costs (notably in
Adjusted operating income margin, excluding currency, increased by 3.5 points to 34.6%, as detailed in Schedule 8.
Nine Months Year-to-Date
Financial Summary - |
|
|
|
|
Change |
|
Variance |
||||||||||||||||||||||
|
2020 |
|
2019 |
|
Total |
|
Excl. |
|
Total |
|
Cur- |
|
Price |
|
Vol/ |
|
Cost/ |
||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Revenues |
|
$ |
1,216 |
|
$ |
1,652 |
|
|
(26.4 |
)% |
(19.1 |
)% |
|
(436 |
) |
(121 |
) |
107 |
|
(232 |
) |
(190 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Income |
|
$ |
328 |
|
$ |
100 |
|
|
+100 |
% |
+100 |
% |
|
228 |
|
(85 |
) |
107 |
|
(175 |
) |
381 |
|
||||||
Asset Impairment & Exit Costs (2) |
|
|
(4 |
) |
|
(45 |
) |
|
91.1 |
% |
91.1 |
% |
|
41 |
|
— |
|
— |
|
— |
|
41 |
|
||||||
Canadian Tobacco Litigation-Related Expense (2) |
|
|
— |
|
|
(194 |
) |
|
+100 |
% |
+100 |
% |
|
194 |
|
— |
|
— |
|
— |
|
194 |
|
||||||
Loss on Deconsolidation of RBH (2) |
|
|
— |
|
|
(239 |
) |
|
+100 |
% |
+100 |
% |
|
239 |
|
— |
|
— |
|
— |
|
239 |
|
||||||
Adjusted Operating Income |
|
$ |
332 |
|
$ |
578 |
|
|
(42.6 |
)% |
(27.9 |
)% |
|
(246 |
) |
(85 |
) |
107 |
|
(175 |
) |
(93 |
) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Operating Income Margin |
|
|
27.3 |
% |
|
35.0 |
% |
|
(7.7 |
)pp |
(3.8 |
)pp |
|
|
|
|
|
|
|||||||||||
(1) Cost/Other variance includes the impact of the RBH deconsolidation. |
|||||||||||||||||||||||||||||
(2) Included in marketing, administration and research costs at the consolidated operating income level. |
|||||||||||||||||||||||||||||
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in |
Net revenues, excluding unfavorable currency, decreased by 19.1%, reflecting: unfavorable volume/mix, due to lower cigarette volume, mainly in
Operating income, excluding unfavorable currency, increased by +100%, notably reflecting a favorable comparison, shown in "Cost/Other," primarily due to charges recorded in 2019 of
Excluding charges and unfavorable currency, adjusted operating income decreased by 27.9%, mainly reflecting: unfavorable volume/mix, due to the same factor as for net revenues noted above; and the unfavorable impact of the deconsolidation of RBH, included in "Cost/Other"; partly offset by a favorable pricing variance; and lower marketing, administration and research costs (notably in
Adjusted operating income margin, excluding currency, decreased by 3.8 points to 31.2%, as detailed in Schedule 8, or by 0.2 points to 31.0% on a like-for-like basis, as detailed in Schedule 10.
Total Market, PMI Shipment & Market Share Commentaries
PMI Shipment Volume |
Third-Quarter |
Nine Months Year-to-Date |
||||||||||
(million units) |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
||||||
Cigarettes |
15,699 |
16,854 |
(6.9)% |
45,542 |
52,906 |
(13.9)% |
||||||
Heated Tobacco Units |
114 |
89 |
28.1% |
316 |
202 |
56.4% |
||||||
Total |
15,813 |
16,943 |
(6.7)% |
45,858 |
53,108 |
(13.7)% |
Third-Quarter
The estimated total market in
partly offset by
PMI's total shipment volume decreased by 6.7% to 15.8 billion units, mainly due to:
partly offset by
Nine Months Year-to-Date
The estimated total market in
partly offset by
PMI's total shipment volume decreased by 13.7% to 45.9 billion units (or by 12.0% on a like-for-like basis), notably due to:
partly offset by
Forward-Looking and Cautionary Statements
This press release contains projections of future results and other forward-looking statements. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.
PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; changes in adult smoker behavior; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost and quality of tobacco and other agricultural products and raw materials; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to produce and commercialize reduced-risk products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is unable to attract and retain the best global talent. Future results are also subject to the lower predictability of our reduced-risk product category's performance.
The COVID-19 pandemic has created significant societal and economic disruption, and resulted in closures of stores, factories and offices, and restrictions on manufacturing, distribution and travel, all of which will adversely impact our business, results of operations, cash flows and financial position during the continuation of the pandemic. Our business continuity plans and other safeguards in place may not be effective to mitigate the impact of the pandemic. Currently, significant risks include our diminished ability to convert adult smokers to our RRPs, significant volume declines in our duty-free business and certain other key markets, disruptions or delays in our manufacturing and supply chain, increased currency volatility, and delays in certain cost saving, transformation and restructuring initiatives. Our business could also be adversely impacted if key personnel or a significant number of employees or business partners become unavailable due to the COVID-19 outbreak. The significant adverse impact of COVID-19 on the economic or political conditions in markets in which we operate could result in changes to the preferences of our adult consumers and lower demand for our products, particularly for our mid-price or premium-price brands. Continuation of the pandemic could disrupt our access to the credit markets or increase our borrowing costs. Governments may temporarily be unable to focus on the development of science-based regulatory frameworks for the development and commercialization of RRPs or on the enforcement or implementation of regulations that are significant to our business. In addition, messaging about the potential negative impacts of the use of our products on COVID-19 risks may lead to increasingly restrictive regulatory measures on the sale and use of our products, negatively impact demand for our products, the willingness of adult consumers to switch to our RRPs and our efforts to advocate for the development of science-based regulatory frameworks for the development and commercialization of RRPs.
The impact of these risks also depends on factors beyond our knowledge or control, including the duration and severity of the outbreak, its recurrence in our key markets, actions taken to contain its spread and to mitigate its public health effects, and the ultimate economic consequences thereof.
PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended
Key Terms, Definitions and Explanatory Notes
General
Financial
Reduced-Risk Products
IQOS in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Appendix 1 |
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||
Key Market Data |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Quarters Ended |
||||||||||||||||||||||||||||||||||||||||||||
Market |
|
Total Market, |
|
PMI Shipments, bio units |
|
PMI Market Share, % (1) |
||||||||||||||||||||||||||||||||||||||
|
|
Total |
|
Cigarette |
|
HTU |
|
Total |
|
HTU |
||||||||||||||||||||||||||||||||||
|
2020 |
2019 |
% |
|
2020 |
2019 |
% |
|
2020 |
2019 |
% |
|
2020 |
2019 |
% |
|
2020 |
2019 |
pp |
|
2020 |
2019 |
pp |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total |
|
669.8 |
|
693.5 |
|
(3.4 |
) |
|
184.4 |
|
199.5 |
|
(7.6 |
) |
|
165.5 |
|
183.5 |
|
(9.8 |
) |
|
19.0 |
|
16.0 |
|
18.7 |
|
|
28.2 |
|
28.9 |
|
(0.7 |
) |
|
3.1 |
|
2.3 |
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
9.8 |
|
10.2 |
|
(3.5 |
) |
|
4.2 |
|
4.5 |
|
(7.5 |
) |
|
4.1 |
|
4.5 |
|
(7.9 |
) |
|
— |
|
— |
|
— |
|
|
45.3 |
|
45.0 |
|
0.3 |
|
|
0.5 |
|
0.2 |
|
0.3 |
|
|
|
|
|
20.4 |
|
20.7 |
|
(1.8 |
) |
|
7.4 |
|
7.4 |
|
0.3 |
|
|
7.0 |
|
7.2 |
|
(1.7 |
) |
|
0.4 |
|
0.2 |
|
59.6 |
|
|
36.4 |
|
35.7 |
|
0.7 |
|
|
1.9 |
|
1.1 |
|
0.8 |
|
|
|
|
|
18.8 |
|
18.3 |
|
2.4 |
|
|
9.7 |
|
9.5 |
|
1.6 |
|
|
8.2 |
|
8.5 |
|
(3.3 |
) |
|
1.5 |
|
1.1 |
|
40.6 |
|
|
52.1 |
|
52.0 |
|
0.1 |
|
|
7.8 |
|
4.6 |
|
3.2 |
|
|
|
|
|
13.5 |
|
12.5 |
|
8.6 |
|
|
5.1 |
|
5.3 |
|
(3.4 |
) |
|
4.5 |
|
5.0 |
|
(10.3 |
) |
|
0.6 |
|
0.3 |
|
+100 |
|
37.8 |
|
42.5 |
|
(4.7 |
) |
|
4.7 |
|
2.4 |
|
2.3 |
|
|
||
|
|
11.7 |
|
12.6 |
|
(7.3 |
) |
|
3.7 |
|
3.8 |
|
(4.1 |
) |
|
3.6 |
|
3.8 |
|
(4.4 |
) |
|
0.1 |
|
0.1 |
|
7.4 |
|
|
32.2 |
|
31.6 |
|
0.6 |
|
|
0.9 |
|
0.7 |
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
60.0 |
|
61.8 |
|
(2.9 |
) |
|
18.6 |
|
18.9 |
|
(1.4 |
) |
|
15.5 |
|
16.2 |
|
(4.2 |
) |
|
3.1 |
|
2.7 |
|
15.7 |
|
|
31.7 |
|
30.7 |
|
1.0 |
|
|
5.8 |
|
4.0 |
|
1.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
5.5 |
|
5.5 |
|
0.2 |
|
|
2.4 |
|
2.0 |
|
23.4 |
|
|
2.4 |
|
2.0 |
|
22.3 |
|
|
— |
|
— |
|
— |
|
|
36.9 |
|
40.8 |
|
(3.9 |
) |
|
0.4 |
|
— |
|
0.4 |
|
|
|
|
|
|
32.3 |
|
31.8 |
|
1.6 |
|
|
13.5 |
|
14.2 |
|
(4.9 |
) |
|
13.5 |
|
14.2 |
|
(4.9 |
) |
|
— |
|
— |
|
— |
|
|
41.7 |
|
44.5 |
|
(2.8 |
) |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|||||||||||||||||||
South & |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
70.2 |
|
77.5 |
|
(9.3 |
) |
|
19.8 |
|
25.0 |
|
(20.8 |
) |
|
19.8 |
|
25.0 |
|
(20.8 |
) |
|
— |
|
— |
|
— |
|
|
28.2 |
|
32.3 |
|
(4.1 |
) |
|
— |
|
— |
|
— |
|
|
|
|
|
17.5 |
|
17.3 |
|
1.0 |
|
|
11.7 |
|
12.4 |
|
(5.5 |
) |
|
11.7 |
|
12.4 |
|
(5.6 |
) |
|
— |
|
— |
|
— |
|
|
66.8 |
|
71.4 |
|
(4.6 |
) |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||||||||||||||||
|
|
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|
|
|
|
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|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
3.2 |
|
3.2 |
|
0.4 |
|
|
1.0 |
|
0.9 |
|
8.1 |
|
|
1.0 |
|
0.9 |
|
8.1 |
|
|
— |
|
— |
|
— |
|
|
29.8 |
|
27.7 |
|
2.1 |
|
|
— |
|
— |
|
— |
|
|
|
|
|
40.7 |
|
41.9 |
|
(2.8 |
) |
|
11.9 |
|
13.3 |
|
(10.6 |
) |
|
4.6 |
|
6.5 |
|
(29.4 |
) |
|
7.3 |
|
6.8 |
|
7.4 |
|
|
36.9 |
|
34.5 |
|
2.4 |
|
|
20.5 |
|
17.1 |
|
3.4 |
|
|
|
|
|
20.2 |
|
18.4 |
|
10.2 |
|
|
3.9 |
|
4.1 |
|
(3.4 |
) |
|
2.7 |
|
2.9 |
|
(7.2 |
) |
|
1.2 |
|
1.1 |
|
6.6 |
|
|
19.5 |
|
22.2 |
|
(2.7 |
) |
|
6.0 |
|
6.2 |
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||||||||||||||||
|
|
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|
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|
|
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|
|
|
|
||||||||||||||||||||||
|
|
8.4 |
|
8.4 |
|
0.7 |
|
|
4.9 |
|
5.9 |
|
(16.9 |
) |
|
4.9 |
|
5.9 |
|
(16.9 |
) |
|
— |
|
— |
|
— |
|
|
58.1 |
|
69.6 |
|
(11.5 |
) |
|
— |
|
— |
|
— |
|
|
|
|
|
7.7 |
|
7.7 |
|
0.2 |
|
|
4.8 |
|
4.9 |
|
(0.9 |
) |
|
4.8 |
|
4.9 |
|
(1.2 |
) |
|
— |
|
— |
|
— |
|
|
62.7 |
|
63.4 |
|
(0.7 |
) |
|
0.2 |
|
— |
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(1) Market share estimates are calculated using IMS data |
||||||||||||||||||||||||||||||||||||||||||||
Note: % change for Total Market and PMI shipments is computed based on millions of units; PMI Market Share estimates for previous periods are restated to reflect RBH deconsolidation and exclude RBH-owned brands. |
|
|
|
|
|
|
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|
|
|
|
|
Appendix 2 |
|||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||
Key Market Data |
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
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|
|
|
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|
|
|
|
|
|
|
||||||||||||||||||
Nine Months Ended |
|||||||||||||||||||||||||||||||||||||||||||
Market |
|
Total Market, |
|
PMI Shipments, bio units |
|
PMI Market Share, % (1) |
|||||||||||||||||||||||||||||||||||||
|
|
Total |
|
Cigarette |
|
HTU |
|
Total |
|
HTU |
|||||||||||||||||||||||||||||||||
|
2020 |
2019 |
% |
|
2020 |
2019 |
% |
|
2020 |
2019 |
% |
|
2020 |
2019 |
% |
|
2020 |
2019 |
pp |
|
2020 |
2019 |
pp |
||||||||||||||||||||
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total |
|
1,892.9 |
|
2,018.7 |
|
(6.2 |
) |
|
528.2 |
|
574.2 |
|
(8.0 |
) |
|
473.8 |
|
531.6 |
|
(10.9 |
) |
|
54.4 |
|
42.5 |
|
27.9 |
|
|
27.9 |
|
28.4 |
|
(0.5 |
) |
|
2.9 |
|
2.1 |
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
28.0 |
|
29.1 |
|
(3.7 |
) |
|
12.7 |
|
13.1 |
|
(3.4 |
) |
|
12.5 |
|
13.1 |
|
(4.1 |
) |
|
0.1 |
|
0.1 |
|
+100 |
|
|
44.9 |
|
44.9 |
|
— |
|
|
0.5 |
|
0.2 |
|
0.3 |
|
|
|
|
56.4 |
|
55.1 |
|
2.4 |
|
|
22.0 |
|
20.8 |
|
5.7 |
|
|
20.8 |
|
20.2 |
|
3.1 |
|
|
1.2 |
|
0.6 |
|
92.2 |
|
|
38.9 |
|
37.7 |
|
1.2 |
|
|
2.1 |
|
1.1 |
|
1.0 |
|
|
|
|
50.8 |
|
51.1 |
|
(0.6 |
) |
|
26.7 |
|
26.6 |
|
0.7 |
|
|
22.8 |
|
24.1 |
|
(5.6 |
) |
|
4.0 |
|
2.5 |
|
62.3 |
|
|
52.0 |
|
51.6 |
|
0.4 |
|
|
7.6 |
|
4.3 |
|
3.3 |
|
|
|
|
35.0 |
|
35.4 |
|
(1.1 |
) |
|
13.6 |
|
14.5 |
|
(6.3 |
) |
|
12.1 |
|
13.8 |
|
(12.6 |
) |
|
1.6 |
|
0.7 |
|
+100 |
|
|
38.9 |
|
41.1 |
|
(2.2 |
) |
|
4.5 |
|
2.1 |
|
2.4 |
|
|
|
|
31.7 |
|
34.4 |
|
(7.8 |
) |
|
10.1 |
|
11.3 |
|
(10.9 |
) |
|
9.8 |
|
11.1 |
|
(11.7 |
) |
|
0.3 |
|
0.2 |
|
27.1 |
|
|
31.5 |
|
31.5 |
|
— |
|
|
1.0 |
|
0.7 |
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
163.6 |
|
168.1 |
|
(2.7 |
) |
|
51.6 |
|
48.8 |
|
5.8 |
|
|
42.3 |
|
43.4 |
|
(2.7 |
) |
|
9.3 |
|
5.3 |
|
74.5 |
|
|
32.3 |
|
29.7 |
|
2.6 |
|
|
6.0 |
|
3.3 |
|
2.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
15.8 |
|
16.1 |
|
(1.8 |
) |
|
6.2 |
|
6.7 |
|
(6.4 |
) |
|
6.2 |
|
6.7 |
|
(7.1 |
) |
|
— |
|
— |
|
— |
|
|
38.5 |
|
40.5 |
|
(2.0 |
) |
|
0.2 |
|
— |
|
0.2 |
|
|
|
|
|
86.6 |
|
93.4 |
|
(7.3 |
) |
|
35.3 |
|
40.6 |
|
(13.0 |
) |
|
35.3 |
|
40.6 |
|
(13.0 |
) |
|
— |
|
— |
|
— |
|
|
40.7 |
|
43.4 |
|
(2.7 |
) |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
South & |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
201.7 |
|
222.7 |
|
(9.4 |
) |
|
58.3 |
|
72.1 |
|
(19.1 |
) |
|
58.3 |
|
72.1 |
|
(19.1 |
) |
|
— |
|
— |
|
— |
|
|
28.9 |
|
32.4 |
|
(3.5 |
) |
|
— |
|
— |
|
— |
|
|
|
|
47.0 |
|
52.7 |
|
(10.7 |
) |
|
32.1 |
|
37.2 |
|
(13.7 |
) |
|
32.1 |
|
37.2 |
|
(13.7 |
) |
|
— |
|
— |
|
— |
|
|
68.4 |
|
70.7 |
|
(2.3 |
) |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
8.3 |
|
9.2 |
|
(9.9 |
) |
|
2.5 |
|
2.6 |
|
(3.6 |
) |
|
2.5 |
|
2.6 |
|
(3.6 |
) |
|
— |
|
— |
|
— |
|
|
29.6 |
|
27.6 |
|
2.0 |
|
|
— |
|
— |
|
— |
|
|
|
|
111.3 |
|
120.1 |
|
(7.3 |
) |
|
38.8 |
|
40.5 |
|
(4.2 |
) |
|
17.7 |
|
20.9 |
|
(15.4 |
) |
|
21.1 |
|
19.5 |
|
7.8 |
|
|
36.7 |
|
34.3 |
|
2.4 |
|
|
20.0 |
|
16.9 |
|
3.1 |
|
|
|
|
54.8 |
|
51.7 |
|
6.0 |
|
|
11.3 |
|
11.8 |
|
(4.2 |
) |
|
7.8 |
|
8.2 |
|
(5.0 |
) |
|
3.5 |
|
3.6 |
|
(2.2 |
) |
|
20.7 |
|
22.9 |
|
(2.2 |
) |
|
6.4 |
|
6.9 |
|
(0.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
24.1 |
|
24.7 |
|
(2.3 |
) |
|
14.9 |
|
17.6 |
|
(15.1 |
) |
|
14.9 |
|
17.6 |
|
(15.1 |
) |
|
— |
|
— |
|
— |
|
|
61.9 |
|
71.2 |
|
(9.3 |
) |
|
— |
|
— |
|
— |
|
|
|
|
21.9 |
|
25.1 |
|
(12.7 |
) |
|
13.6 |
|
16.6 |
|
(17.9 |
) |
|
13.6 |
|
16.6 |
|
(18.1 |
) |
|
— |
|
— |
|
— |
|
|
62.0 |
|
65.9 |
|
(3.9 |
) |
|
0.2 |
|
— |
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(1) Market share estimates are calculated using IMS data |
|||||||||||||||||||||||||||||||||||||||||||
Note: % change for Total Market and PMI shipments is computed based on millions of units; PMI Market Share estimates for previous periods are restated to reflect RBH deconsolidation and exclude RBH-owned brands. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 3 |
||
|
|
|||||||||||||||
|
Reconciliation of Non-GAAP Measures |
|||||||||||||||
|
Shipment Volume Adjusted for the Impact of RBH Deconsolidation |
|||||||||||||||
|
(in million units) / (Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total PMI |
|
Quarters Ended |
|
Nine Months Ended |
||||||||||
|
|
|
|
2020 |
2019 |
% Change |
|
2020 |
2019 |
% Change |
||||||
|
|
Total Shipment Volume |
|
184,431 |
|
199,504 |
|
(7.6) |
% |
|
528,243 |
|
574,154 |
|
(8.0) |
% |
|
|
Shipment Volume for RBH-owned brands (1) |
|
|
|
— |
|
|
|
|
|
(1,008) |
(2) |
|
||
|
|
Total Shipment Volume |
|
184,431 |
|
199,504 |
|
(7.6) |
% |
|
528,243 |
|
573,146 |
(3) |
(7.8) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total Cigarette Shipment Volume |
|
165,464 |
|
183,519 |
|
(9.8) |
% |
|
473,841 |
|
531,615 |
|
(10.9) |
% |
|
|
Shipment Volume for RBH-owned brands (1) |
|
|
|
— |
|
|
|
|
|
(1,008) |
(2) |
|
||
|
|
Total Cigarette Shipment Volume |
|
165,464 |
|
183,519 |
|
(9.8) |
% |
|
473,841 |
|
530,607 |
(3) |
(10.7) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total HTU Shipment Volume |
|
18,967 |
|
15,985 |
|
18.7 |
% |
|
54,402 |
|
42,539 |
|
27.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|