Philip Morris’s revenue growth
With revenue growth of 11.7% in the second quarter, Philip Morris International (PM) outperformed Altria Group (MO). During the quarter, Philip Morris posted revenue of $7.73 billion compared to $6.92 billion in the second quarter of 2017. However, excluding favorable currency effects, the company’s revenue rose 8.3%.
This revenue growth was driven by a strong pricing variance of 8.0% for the company’s combustible products and growth in the sales of its iQOS devices and heated tobacco units.
During the second quarter, Philip Morris posted strong revenue growth of 18.6% in the European Union, 9.0% in Eastern Europe, 4.5% in the Middle East and Africa, 10.5% in South and Southeast Asia, 10.5% in East Asia and Australia, and 7.9% in Latin America and Canada.
Altria’s revenue growth
Altria Group posted revenue of $4.88 billion in the second quarter, representing a fall of 3.7% from $50.7 billion in the second quarter of 2017. The company’s revenue fell short of analysts’ consensus expectation of $5.03 billion. Its revenue fell due to a fall in revenue in its Smokeable Products segment, which was partially offset by growth in its Smokeless Products and Wine segments.
The revenue from Altria’s Smokeable Products segment fell 4.8% due to a 10.8% fall in its domestic cigarette shipment volumes. During the quarter, revenues from the Smokeless Products and Wine segments rose 2.8% and 11.7%, respectively.
Next, we’ll look at analysts’ revenue expectations for these companies over the next four quarters.