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Philip Morris Starts Its New Manufacturing Facility in Italy

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Nov. 20 2020, Updated 1:27 p.m. ET

Price movement

Philip Morris International (PM) has a market cap of $159.0 billion. It fell 0.19% to close at $101.53 per share on September 23, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.7%, 1.4%, and 17.9%, respectively, on the same day. PM is trading 1.4% above its 20-day moving average, 1.6% above its 50-day moving average, and 6.4% above its 200-day moving average.

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Related ETF and peers

The iShares Russell Top 200 Value ETF (IWX) invests 0.99% of its holdings in Philip Morris. The ETF tracks an index of US large-cap value stocks. The index selects from stocks ranked 1–200 by market cap based on two style factors. The YTD price movement of IWX was 6.0% on September 23.

The market caps of Philip Morris’ competitors are as follows:

  • Altria Group (MO) — $125.7 billion
  • Vector Group (VGR) — $2.7 billion
  • Reynolds American (RAI) — $69.3 billion

Latest news on Philip Morris

In a press release on September 23, 2016, Philip Morris announced that it “inaugurates today its first manufacturing facility for large scale production of two heated tobacco alternatives to cigarettes. The announcement was made at an event at the factory in the presence of the Italian Prime Minister Matteo Renzi. The initial annual production capacity of the factory will be approximately 30 billion units.”

It added, “representing an anticipated investment of approximately EUR 500 million, this state-of-the-art facility currently employs over 300 people and, when fully operational, may employ up to 600. PMI affiliates in Italy already employ over 1000 people.”

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Philip Morris’s performance in 2Q16

Philip Morris (PM) reported 2Q16 net revenues of $19.0 billion, a rise of 1.1% over the $18.8 billion in 2Q15. Net revenues, which exclude excise taxes from the European Union, rose 4.6%.

Net revenues from EEMA (Eastern Europe, the Middle East, and Africa), Asia, and Latin America and Canada fell 9.9%, 0.6%, and 13.6%, respectively, between 2Q15 and 2Q16. PM’s cigarette shipment volume in the European Union, EEMA, Asia, and Latin America and Canada fell 0.8%, 4.0%, 7.9%, and 5.9%, respectively.

The company’s gross profit margin and operating income fell 5.8% and 4.8%, respectively, between 2Q15 and 2Q16. Its net income and EPS (earnings per share) fell to $1.8 billion and $1.15, respectively, in 2Q16, compared to $1.9 billion and $1.21, respectively, in 2Q15.

PM’s cash and cash equivalents rose 11.6% between 4Q15 and 2Q16. The company reported free cash flow excluding currency of $2.7 billion in 2Q16, a fall of 22.9% from 2Q15.

Philip Morris (PM) projects EPS of $4.45–$4.55, not including share repurchases in 2016. This projection also excludes the impact of any future acquisitions, future changes in currency exchange rates, unanticipated asset impairment and exit cost charges, and any unusual events.

Quarterly dividend

Philip Morris International has declared a quarterly dividend of $1.04 per share on its common stock. The dividend will be paid on October 13, 2016, to shareholders of record as of September 28, 2016. For an ongoing analysis of the consumer discretionary sector, please visit Market Realist’s Consumer Discretionary page.

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