Difference between revisions of "Philip Morris International"
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Philip Morris International (PMI), the world’s largest publicly traded tobacco company, operates in approximately 180 countries and reported 18.31 billion USD (2017 Annual report) in profits in 2017. PMI, a U.S.-based corporation, only sells its products outside the U.S. PMI was separated from its parent company, the [[Altria Group]], in March 2008, in part to protect the company from increased U.S.-based regulation and Litigation. Although PMI and [[Altira Group|Altria]] are now legally separate companies, PMI’s leadership remains largely the same as it was under [[Altira Group|Altria]]. | Philip Morris International (PMI), the world’s largest publicly traded tobacco company, operates in approximately 180 countries and reported 18.31 billion USD (2017 Annual report) in profits in 2017. PMI, a U.S.-based corporation, only sells its products outside the U.S. PMI was separated from its parent company, the [[Altria Group]], in March 2008, in part to protect the company from increased U.S.-based regulation and Litigation. Although PMI and [[Altira Group|Altria]] are now legally separate companies, PMI’s leadership remains largely the same as it was under [[Altira Group|Altria]]. | ||
− | ==Staffing== | + | ==Company Overview== |
+ | ===Staffing=== | ||
Majority of their executive hires are from within who worked with the organisation for a number of years | Majority of their executive hires are from within who worked with the organisation for a number of years | ||
The executive staff and board members only have two female hires (out of 20). | The executive staff and board members only have two female hires (out of 20). | ||
− | ==Trends== | + | ===Trends=== |
* Estimated international cigarette and heated tobacco unit volume, excluding China and the United States, of 2.8 trillion, is down by 2.8 percent | * Estimated international cigarette and heated tobacco unit volume, excluding China and the United States, of 2.8 trillion, is down by 2.8 percent | ||
* Cigarette and heated tobacco unit shipment volume of 798.2 billion is down by 2.7 percent. Best year-to-date for [[Reduced-risk products]] (RRPs) | * Cigarette and heated tobacco unit shipment volume of 798.2 billion is down by 2.7 percent. Best year-to-date for [[Reduced-risk products]] (RRPs) | ||
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* 4.6 million adult consumers around the world have already stopped smoking and made change to [[IQOS]] | * 4.6 million adult consumers around the world have already stopped smoking and made change to [[IQOS]] | ||
− | ==2018 Forecast== | + | ===2018 Forecast=== |
* Further investment in [[IQOS]] and planned lifting of the restriction on [[IQOS]]device sales in key markets | * Further investment in [[IQOS]] and planned lifting of the restriction on [[IQOS]]device sales in key markets | ||
* PMI’s USD 80 million dollar donation to the Foundation for a Smoke-Free World will be fully expensed in Q1/2018 | * PMI’s USD 80 million dollar donation to the Foundation for a Smoke-Free World will be fully expensed in Q1/2018 | ||
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markets they were hoping to explore) | markets they were hoping to explore) | ||
− | ==Board members and key executives== | + | ===Board members and key executives=== |
{| class="wikitable" | {| class="wikitable" | ||
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|} | |} | ||
− | ==Investments in Unconsolidated Subsidiaries ("significant" > 20%):== | + | ===Investments in Unconsolidated Subsidiaries ("significant" > 20%):=== |
From an accounting/financial perspective these organisations are treated as investments as the head organisation may have limited or no managerial control.. | From an accounting/financial perspective these organisations are treated as investments as the head organisation may have limited or no managerial control.. | ||
{| class="wikitable" | {| class="wikitable" | ||
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− | ==List of Significant Subsidiaries== | + | ===List of Significant Subsidiaries=== |
{| class="wikitable" | {| class="wikitable" | ||
! style="font-weight:bold;" | Subsidiary Name | ! style="font-weight:bold;" | Subsidiary Name |
Revision as of 13:12, 26 April 2018
Philip Morris International (PMI), the world’s largest publicly traded tobacco company, operates in approximately 180 countries and reported 18.31 billion USD (2017 Annual report) in profits in 2017. PMI, a U.S.-based corporation, only sells its products outside the U.S. PMI was separated from its parent company, the Altria Group, in March 2008, in part to protect the company from increased U.S.-based regulation and Litigation. Although PMI and Altria are now legally separate companies, PMI’s leadership remains largely the same as it was under Altria.
Contents
Company Overview
Staffing
Majority of their executive hires are from within who worked with the organisation for a number of years The executive staff and board members only have two female hires (out of 20).
Trends
- Estimated international cigarette and heated tobacco unit volume, excluding China and the United States, of 2.8 trillion, is down by 2.8 percent
- Cigarette and heated tobacco unit shipment volume of 798.2 billion is down by 2.7 percent. Best year-to-date for Reduced-risk products (RRPs)
- Reported net revenues of USD 78.1 billion is up by 4.2 percent
- PMI increased its regular quarterly dividend by 2.9 percent, from USD 1.04 to 1.07, representing an annualized rate of USD 4.28per common share
- 2018 will see a restructure six Regional market segments (from the existing four) to support PMI’s business transformation
- 4.6 million adult consumers around the world have already stopped smoking and made change to IQOS
2018 Forecast
- Further investment in IQOS and planned lifting of the restriction on IQOSdevice sales in key markets
- PMI’s USD 80 million dollar donation to the Foundation for a Smoke-Free World will be fully expensed in Q1/2018
- Anticipation of a strong net revenue (ex-currency) in Q1/2018
- Morphing local brands into international brands and increase efficiency
- Increase in combustible products prices, coupled with a decreased volume of products
- IQOS priority is to go deeper in the existing markets (they weren’t specific on any new
markets they were hoping to explore)
Board members and key executives
Name | Position | Bio | Source |
---|---|---|---|
Louis C. Camilleri | Chairman of the Board | Mr. Calantzopoulos was named Chief Executive Officer and was elected to the Board of Directors on May 8, 2013. He served as Chief Operating Officer from our spin-off on March 28, 2008 to May 8, 2013. Mr. Calantzopoulos was PMI’s President and Chief Executive Officer between 2002 and the date of the spin-off. After joining the company in 1985, he worked extensively across Central Europe, including as Managing Director of PM Poland and President of the Eastern European Region.
Mr. Calantzopoulos holds a degree in electrical engineering from Swiss Federal Institute of Technology in Lausanne and an MBA from INSEAD in France. |
|
Harold Brown | Director | ||
Massimo Ferragamo | Director | ||
Werner Geissler | Director | ||
Jennifer Li | Director | ||
Director | |||
Sergio Marchionne | Director | ||
Kalpana Morparia | Director | ||
Lucio A. Noto | Director | ||
Frederik Paulsen | Director | ||
Robert B. Polet | Director | ||
Stephen M. Wolf | Director | ||
André Calantzopoulos | Director and Chief Executive Officer | ||
Martin King | Chief Financial Officer | ||
Jacek Olczak | Chief Operating Officer | ||
Jaime Suarez | Chief Digital Officer | ||
Paul Riley | President, East Asia & Australia Region | ||
Marco Mariotti | President, Eastern Europe Region | ||
Frederic de Wilde | President, European Union Region | ||
Jeanne Polles | President, Latin America & Canada Region | ||
Stacey Kennedy | President, South & Southeast Asia Region | ||
Drago Azinovic | President, Middle East & Africa & PMI Duty Free | ||
Miroslaw Zielinski | President, Science & Innovation | ||
Marc S. Firestone | President, External Affairs and General Counsel | ||
Jerry Whitson | Deputy General Counsel and Corporate Secretary | ||
Patrick Brunel | Senior Vice President and Chief Information Officer | ||
Werner Barth | Senior Vice President, Commercial | ||
Massimo Andolina | Senior Vice President, Operations | ||
Charles Bendotti | Senior Vice President, People & Culture | ||
Andreas Kurali | Vice President and Controller | ||
Frank de Rooij | Vice President, Treasury And Corporate Finance | ||
Paul Janelle | Vice President, Corporate Planning and Business Development |
Investments in Unconsolidated Subsidiaries ("significant" > 20%):
From an accounting/financial perspective these organisations are treated as investments as the head organisation may have limited or no managerial control..
Subsidiary Name | Country | Interest amount (%) | Interest Type | Notes |
---|---|---|---|---|
Emirati Investors-TA (FZC) ("EITA") | United Arab Emirates | 49% | Equity | |
Société des Tabacs Algéro-Émiratie ("STAEM") | Algiers | 25% | Economic | Algerian joint venture 51% owned by EITA and 49% owned by Algerian state-owned enterprise Société Nationale des Tabacs et Allumettes SpA.Manufactures and distributes under license some of PMI's brands. |
Megapolis Distribution BV | Russia | 23% | Equity | Holding company of CJSC TK Megapolis, PMI's distributor in Russia |
List of Significant Subsidiaries
Subsidiary Name | State or Country of Organization | Region |
---|---|---|
Philip Morris Japan Limited | Japan | East Asia & Australia |
Philip Morris Korea Inc. | Korea, Republic of | East Asia & Australia |
Philip Morris Kazakhstan LLP | Kazakhstan | Eastern Europe |
Limited Liability Company "Philip Morris Sales and Marketing" | Russian Federation | Eastern Europe |
ZAO "Philip Morris Izhora" | Russian Federation | Eastern Europe |
Philip Morris Operations a.d. Nis | Serbia | Eastern Europe |
Limited Liability Company "Philip Morris Sales & Distribution" | Ukraine | Eastern Europe |
Philip Morris Benelux BVBA | Belgium | European Union |
Philip Morris CR a.s. | Czechia | European Union |
Philip Morris Finland Ltd | Finland | European Union |
f6 Cigarettenfabrik GmbH & Co. KG | Germany | European Union |
Philip Morris GmbH | Germany | European Union |
Philip Morris Manufacturing GmbH | Germany | European Union |
Papastratos Cigarettes Manufacturing Company S.A. | Greece | European Union |
Philip Morris Italia S.r.l. | Italy | European Union |
Philip Morris Manufacturing & Technology Bologna S.p.A. | Italy | European Union |
UAB "Philip Morris Lietuva" | Lithuania | European Union |
Philip Morris Holland B.V. | Netherlands | European Union |
Philip Morris Holland Holdings B.V. | Netherlands | European Union |
Philip Morris International Holdings B.V. | Netherlands | European Union |
Philip Morris Investments B.V. | Netherlands | European Union |
PM Tobakk Norge AS | Norway | European Union |
Philip Morris Polska Spolka Akcyjna | Poland | European Union |
Philip Morris Polska Distribution Sp. z.o.o. | Poland | European Union |
Tabaqueira II, S.A. | Portugal | European Union |
Tabaqueira - Empresa Industrial de Tabacos, S.A. | Portugal | European Union |
Philip Morris Romania S.R.L. | Romania | European Union |
Philip Morris Brands Sàrl | Switzerland | European Union |
Philip Morris Exports Sàrl | Switzerland | European Union |
Philip Morris Finance SA | Switzerland | European Union |
Philip Morris International Management SA | Switzerland | European Union |
Philip Morris Products S.A. | Switzerland | European Union |
Philip Morris & Company (UK) Limited | United Kingdom of Great Britain and Northern Ireland | European Union |
Massalin Particulares S.R.L. | Argentina | Latin America & Canada |
Philip Morris Brasil Industria e Comercio Ltda. | Brazil | Latin America & Canada |
Compania Colombiana de Tabaco S.A.S. | Colombia | Latin America & Canada |
Philip Morris Mexico Productos Y Servicios, Sociedad de Responsabilidad Limitada de Capital Variable | Mexico | Latin America & Canada |
Philip Morris Mexico, Sociedad Anónima de Capital Variable | Mexico | Latin America & Canada |
Philip Morris Misr Limited Liability Company | Egypt | Middle East & Africa |
Leonard Dingler (Proprietary) Limited | South Africa | Middle East & Africa |
Philip Morris SA Philip Morris Sabanci Pazarlama ve Satis A.S. | Turkey | Middle East & Africa |
PHILSA Philip Morris Sabanci Sigara ve Tutunculuk Sanayi ve Ticaret A.S. | Turkey | Middle East & Africa |
PT Hanjaya Mandala Sampoerna Tbk. | Indonesia | South & Southeast Asia |
PT Philip Morris Indonesia | Indonesia | South & Southeast Asia |
Philip Morris (Pakistan) Limited | Pakistan | South & Southeast Asia |
Philip Morris Philippines Manufacturing Inc. | Philippines | South & Southeast Asia |
PMFTC Inc. | Philippines | South & Southeast Asia |
Philip Morris Limited | Australia | #N/A |
Rothmans, Benson & Hedges Inc. | Canada | #N/A |
Philip Morris Global Brands Inc. | United States of America |
Profitability
- PMI’s profitability has followed a steadily declining trend in recent years from 17.43 billion in 2015 to 17.29 billion in 2016
- This year marks the first increase in profits from the previous year since 2012
- The 2017 Tax Cuts and Jobs Act was signed into law in December last year. The tax means a reduction of the U.S. federal corporate tax rate from 35 to 21 percent. The income tax payable is due over an 8-year period beginning in 2018. They expect an effective tax rate of 28 percent
- The 2017 Tax Cuts and Jobs Act was signed into law in December last year. The tax means a reduction of the U.S. federal corporate tax rate from 35 to 21 percent. The income tax payable is due over an 8-year period beginning in 2018. They expect an effective tax rate of 28 percent
Annual trends
Fiscal year (January to December)(in billions USD) | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
---|---|---|---|---|---|---|
Revenues or Net Sales | $78.09 | $74.95 | $73.91 | $80.11 | $80.03 | $77.39 |
Gross Profit | $18.31 | $17.29 | $17.43 | $19.33 | $20.81 | $21.00 |
Profits per region (in millions USD)
European Union
European Union | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
---|---|---|---|---|---|---|
Net Revenues | $27,129 | $26,563 | $30,517 | |||
Excise taxes on products | $18,967 | $18,495 | $21,370 | |||
Net Revenues, excluding excise taxes on products | $8,162 | $8,068 | $9,147 | |||
Operating companies income | $3,994 | $3,576 | $3,815 |
Eastern Europe, Middle East & Africa
Eastern Europe, Middle East & Africa | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
---|---|---|---|---|---|---|
Net Revenues | $18,286 | $18,328 | $20,469 | |||
Excise taxes on products | $11,286 | $10,964 | $11,855 | |||
Net Revenues, excluding excise taxes on products | $7,000 | $7,364 | $8,614 | |||
Operating companies income | $3,016 | $3,425 | $4,033 |
Asia
Asia | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
---|---|---|---|---|---|---|
Net Revenues | $20,531 | $19,469 | $19,255 | |||
Excise taxes on products | $11,850 | $11,266 | $10,527 | |||
Net Revenues, excluding excise taxes on products | $8,681 | $8,203 | $8,728 | |||
Operating companies income | $3,196 | $2,886 | $3,187 |
Latin America & Canada
Latin America & Canada | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
---|---|---|---|---|---|---|
Net Revenues | $9,007 | $9,548 | $9,865 | |||
Excise taxes on products | $6,165 | $6,389 | $6,587 | |||
Net Revenues, excluding excise taxes on products | $2,842 | $3,159 | $3,278 | |||
Operating companies income | $938 | $1,085 | $1,030 |
Acquisitions
Recent acquisitions | Acquired Organization Name | Acquiring Organization Name | Announced Date | Value |
---|---|---|---|---|
Papastratos Cigarette Manufacturing Company acquired by Philip Morris International | Papastratos Cigarette Manufacturing Company | Philip Morris International | 9/15/2003 | $0.00 |
DIN Fabrika Duvana AD acquired by Philip Morris International | DIN Fabrika Duvana AD | Philip Morris International | 12/18/2003 | $0.00 |
Compania Colombiana de Tabaco S.A.S. acquired by Philip Morris International | Compania Colombiana de Tabaco S.A.S. | Philip Morris International | 8/31/2004 | $310,000,000.00 |
Rocker Production AB acquired by Philip Morris International | Rocker Production AB | Philip Morris International | 9/3/2006 | $0.00 |
Lakson Tobacco Company acquired by Philip Morris International | Lakson Tobacco Company | Philip Morris International | 1/19/2007 | $0.00 |
Rothmans acquired by Philip Morris International | Rothmans | Philip Morris International | 8/1/2008 | $0.00 |
Swedish Match (South Africa) acquired by Philip Morris International | Swedish Match (South Africa) | Philip Morris International | 7/2/2009 | $222,000,000.00 |
Productora Tabacalera de Colombia acquired by Philip Morris International | Productora Tabacalera de Colombia | Philip Morris International | 7/10/2009 | $452,000,000.00 |
Investments
Investments | Organizational Name | Funding Type | Money Raised | Announced Date |
---|---|---|---|---|
Funding Round | Syqe Medical | Funding Round | $20,000,000.00 | 1/19/2016 |
Factory closures
Dividends
During 2017, PMI increased its regular quarterly dividend by 2.9%, from USD 1.04 to 1.07, representing an annualized rate of USD 4.28per common share. Since its spin-off in March 2008, PMI has increased its regular quarterly dividend by 132.6% from the initial annualized rate of USD 1.84 per common share, or a compound annual growth rate of 9.8%.