Virginia | 1-33708 | 13-3435103 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
120 Park Avenue, New York, New York | 10017-5592 | |||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
Emerging growth company | o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
Item 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
PHILIP MORRIS INTERNATIONAL INC. | ||
By: | /s/ JERRY WHITSON | |
Name: | Jerry Whitson | |
Title: | Deputy General Counsel and Corporate Secretary |
PRESS RELEASE | ||||
Investor Relations: | Media: | |||
New York: +1 (917) 663 2233 | Lausanne: +41 (0)58 242 4500 | |||
Lausanne: +41 (0)58 242 4666 | Email: Iro.Antoniadou@pmi.com |
• | An unfavorable currency impact, at prevailing exchange rates, of approximately $0.12, compared to the previously communicated unfavorable full-year impact of approximately $0.07, mainly due to the Turkish lira; and |
• | Effective July 1, 2018, in accordance with U.S. GAAP, PMI began to account for the operations of its Argentinian affiliates as highly inflationary and to treat the U.S. dollar as the affiliates’ functional currency. Following this accounting change, as a result of the further devaluation of the Argentine peso, the full-year forecast includes an unfavorable currency impact of approximately $0.06 at prevailing exchange rates, which is now considered as part of the underlying business results. |
• | A total cigarette and heated tobacco unit shipment volume decline for PMI of approximately 2% versus an estimated total international volume decline (excluding China and the U.S.) of approximately 2.5% compared to a previously communicated estimated total international volume decline of 2% to 3%; |
• | Significant growth of PMI's in-market heated tobacco unit sales volume, driven by all launch markets, notably the EU Region, Japan, Korea and Russia, reaching 44 to 45 billion units in 2018; |
• | Heated tobacco unit shipments of 41 to 42 billion units in 2018, including an anticipated full-year distributor inventory reduction -- concentrated in the third quarter of 2018 -- of approximately three billion units, reflecting an estimated four billion unit reduction in Japan offset by an estimated one billion unit increase in other markets; and |
• | Currency-neutral net revenue growth of approximately 3%, compared to the previously communicated range of approximately 3% to 4%, primarily reflecting the move to highly inflationary accounting in Argentina resulting in the treatment of the U.S. dollar as the functional currency of the company’s Argentinian affiliates, effective July 1, 2018. |
• | An estimated strong combustible product pricing variance of approximately 7%; |
• | Net incremental investment behind RRPs of approximately $600 million for the full year; |
• | Operating cash flow of approximately $9 billion, subject to currency movements and year-end working capital requirements; |
• | Capital expenditures of approximately $1.5 billion; |
• | An effective tax rate of approximately 24%; and |
• | No share repurchases. |
• | Net revenue and adjusted diluted EPS compound annual currency-neutral growth of at least 5% and 8%, respectively; |
• | Heated tobacco unit volume of 90-100 billion units by 2021; |
• | Stable unit cost of goods sold; |
• | Over $1 billion in annualized cost efficiencies by 2021 compared to the cost base in 2018; |
• | Growth in operating cash flow broadly in line with net earnings; |
• | Relatively stable net interest expense; and |
• | Estimated annual capital expenditures of $1.2 to $1.3 billion. |
• | An estimated total international compound annual volume decline (excluding China and the U.S.) of 2% to 3%; |
• | Continued strong pricing, supported by a broadly rational excise tax environment; |
• | No share repurchases included in the growth targets for the period. Based on its growth targets and subject to currency, the company will be in a position to reconsider share repurchases later in the period; |
• | An effective annual tax rate of approximately 24%; and |
• | A dividend payout ratio that is anticipated to gradually come down over the period. |
• | Explain why its combustible business, led by its superior brand portfolio, is strong; |
• | Outline recent developments related to the scientific substantiation of its reduced-risk products portfolio; |
• | Introduce and explain its latest innovative IQOS devices and related ecosystems; |
• | Provide insights into IQOS adult user evolution, conversion and economics, including by select key geographies; |
• | Explain how it is building a more agile, responsive, pro-active and consumer-centric organization to deliver on its vision of a Smoke-Free Future; and |
• | Discuss why it anticipates better business performance in 2019 compared to 2018. |
5
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