Strong Quarterly Performance

Philip Morris International Inc. announced a robust first-quarter performance, with net revenue climbing 5.8% year-over-year to $9.3 billion. Operating income saw a significant increase of 16.4%, reaching $3.5 billion, while diluted earnings per share (EPS) soared by 24.6% to $1.72.

Smoke-Free Business Leads Growth

The company's smoke-free products segment was a standout, contributing 42% to total net revenues with a 15% year-on-year sales increase. This highlights the company's successful pivot towards healthier alternatives amidst changing consumer preferences.

Leadership Confidence and Future Outlook

"We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment," stated CEO Jacek Olczak. Looking ahead, Philip Morris forecasts a net revenue growth of 6% to 8% and an operating income growth of 10.5% to 12.5% on an organic basis for 2025. The second-quarter diluted EPS is projected to be between $1.80 and $1.85. Notably, the company has no plans for a stock buyback this year.

Market Reaction

Following the earnings announcement, Philip Morris shares experienced a 1.76% increase in premarket trading, reflecting investor optimism about the company's financial health and future prospects.