EX-99.23ex992recastschedules_2024v.htmEX-99.2 Document
Exhibit 99.2
Recast Shipment Volume and
Unaudited Financial Information
2024 vs. 2023
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Terms, Definitions and Explanatory Notes
General
• “PMI” refers to Philip Morris International Inc. and its subsidiaries. Trademarks and service marks that are the registered property of, or licensed by, the subsidiaries of PMI, are italicized.
• With our smoke-free business now operating at scale across our regions, including substantial growth from our U.S. business, T1PMI has implemented an evolved organizational model with two primary business units: International and U.S. This change was implemented effective January 1, 2026, and as a result PMI realigned its reportable segments accordingly. The four geographic segments have been replaced with three new reportable segments: International Smoke-Free, International Combustibles, and U.S. (including our wellness business unit, Aspeya). As of the first quarter of 2026, our reporting will reflect these changes.
• The Company did not operate under these reportable segments or using this measure of segment operating performance in prior periods and will begin to report comparative results under this basis with the filing of its Quarterly Report on Form 10‑Q for the quarter ending March 31, 2026. Until the Company’s interim financial statements are issued, amounts on this new basis are not in accordance with U.S. GAAP and, as a result, are considered non‑GAAP measures.
• In the first quarter of 2026, PMI is introducing Operating Companies Income (OCI) as an additional profitability measure for our U.S. and International business units. OCI is calculated as Operating Income (OI) less corporate expenses and other. Other includes foreign currency gains/losses and compensation expense related to restricted share units and performance share units awards, which were reclassified from Cost of Sales and Marketing, Administration and Research costs. We believe it is appropriate to disclose this additional profitability measure, OCI, to help investors analyze the business performance and trends of these business units.
• The recast 2024 and 2023 financial and shipment volume information in this document reflect the three new reportable segments announced on November 4, 2025.
• Comparisons are made to the same prior-year period unless otherwise stated.
• "Combustible tobacco products" is the term PMI uses to refer to cigarettes and other tobacco products that are combusted.
• "Total shipment volume" is defined as the combined total of cigarette, heated tobacco, oral smoke-free products (excluding snuff, snuff leaf and U.S. chew) and e-vapor shipment volume in equivalent units, unless otherwise stated.
Financial
• "Adjusted Gross Profit Margin" is calculated as adjusted gross profit divided by adjusted net revenues.
• "Adjusted Operating Companies Income Margin" is calculated as adjusted operating companies income divided by adjusted net revenues.
• Management reviews net revenues, gross profit, operating companies income, operating income, gross profit margin, operating companies income margin, operating income margin, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, divestitures, restructuring costs, tax items and other special items. Additionally, starting in 2022 and on a comparative basis, for these measures other than net revenues and operating cash flow, PMI includes adjustments to add back amortization expense on acquisition related intangible assets that are recorded as part of purchase accounting and contribute to PMI’s revenue generation, as well as impairment of intangible assets, if any.
While amortization expense on acquisition related intangible assets is excluded in these adjusted measures, the net revenues generated from these acquired intangible assets are included in the company's adjusted measures, unless otherwise stated. Currency-neutral and organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures provide useful insight into underlying business trends and results.
• Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI’s business performance between reporting periods. Furthermore, PMI uses several of these measures in its management compensation program to promote internal fairness and a disciplined assessment of performance against company targets. PMI discloses these measures to enable investors to view the business through the eyes of management.
• Non-GAAP measures used by PMI should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP. For a reconciliation of non-GAAP measures to the most directly comparable U.S. GAAP measures, see the relevant schedules provided with this report.
Smoke-Free
• Smoke-free business ("SFB”) is the term PMI uses to refer to all of its smoke-free products. SFB also includes Wellness products, as well as consumer accessories, such as lighters and matches.
• Smoke-free products ("SFPs”) is the term PMI uses to refer to all of its products that provide nicotine without combusting tobacco, such as heat-not-burn, e-Vapor,
and oral smokeless, and that therefore generate far lower levels of harmful chemicals. As such, these products have the potential to present less risk of harm versus continued smoking.
• "Heated tobacco units" or "HTU" is the term PMI uses to refer to heated tobacco consumables, which include our BLENDS, DELIA, HEETS, HEETS Creations
(defined collectively as "HEETS"), SENTIA, TEREA, TEREA CRAFTED, and TEREA Dimensions, as well as the KT&G-licensed brands, Fiit and Miix (outside of
South Korea). HTU's also include zero tobacco heat-not-burn consumables (LEVIA).
• Oral smoke-free products conversion: (i) nicotine pouches (units): 15 pouches per can in the U.S. and approximately 20 pouches per can outside the U.S.; (ii) snus
products: weighted average 21 pouches equivalent per can; (iii) moist snuff products: weighted average 17 pouches equivalent per can; (iv) tobacco bits products:
weighted average 30 pouches equivalent per can; (v) chew bags products: weighted average 20 pouches per can.
• E-vapor products conversion: one milliliter of e-vapor liquid equivalent to 10 units.
• Wellness products primarily refer to products associated with oral and intra-oral delivery systems.
Schedule 1
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Shipment Volume by Product Category
(in million equivalent units)
Quarters Ended
March 31
Quarters Ended
June 30
Quarters Ended
September 30
Quarters Ended
December 31
Years Ended
December 31
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
Cigarettes
International Combustibles
143,191
143,708
(0.4)
%
157,618
157,010
0.4
%
163,238
161,137
1.3
%
152,780
151,094
1.1
%
616,827
612,949
0.6
%
Total PMI
143,191
143,708
(0.4)
%
157,618
157,010
0.4
%
163,238
161,137
1.3
%
152,780
151,094
1.1
%
616,827
612,949
0.6
%
Smoke-Free
International Smoke-Free
35,049
28,840
21.5
%
37,493
33,043
13.5
%
37,430
34,147
9.6
%
37,830
35,698
6.0
%
147,802
131,728
12.2
%
U.S.
2,570
1,730
48.5
%
2,618
1,962
33.4
%
2,827
2,171
30.2
%
3,025
2,300
31.5
%
11,040
8,163
35.2
%
Total PMI
37,618
30,570
23.1
%
40,111
35,005
14.6
%
40,257
36,319
10.8
%
40,855
37,996
7.5
%
158,842
139,890
13.5
%
Heated Tobacco Units
International Smoke-Free
33,134
27,396
20.9
%
35,544
31,424
13.1
%
35,347
32,471
8.9
%
35,718
33,972
5.1
%
139,743
125,263
11.6
%
Total PMI
33,134
27,396
20.9
%
35,544
31,424
13.1
%
35,347
32,471
8.9
%
35,718
33,972
5.1
%
139,743
125,263
11.6
%
Oral Smoke-Free Products
International Smoke-Free
1,610
1,349
19.4
%
1,565
1,524
2.7
%
1,620
1,468
10.3
%
1,613
1,504
7.3
%
6,408
5,845
9.6
%
U.S.
2,570
1,730
48.5
%
2,618
1,962
33.4
%
2,827
2,171
30.2
%
3,025
2,300
31.5
%
11,040
8,163
35.2
%
Total PMI
4,180
3,079
35.7
%
4,183
3,486
20.0
%
4,447
3,640
22.2
%
4,638
3,802
22.0
%
17,448
14,007
24.6
%
E-Vapor
International Smoke-Free
305
95
+100%
384
95
+100%
463
208
+100%
499
222
+100%
1,651
620
+100%
Total PMI
305
95
+100%
384
95
+100%
463
208
+100%
499
222
+100%
1,651
620
+100%
Total
International Smoke-Free
35,049
28,840
21.5
%
37,493
33,043
13.5
%
37,430
34,147
9.6
%
37,830
35,698
6.0
%
147,802
131,728
12.2
%
International Combustibles
143,191
143,708
(0.4)
%
157,618
157,010
0.4
%
163,238
161,137
1.3
%
152,780
151,094
1.1
%
616,827
612,949
0.6
%
U.S.
2,570
1,730
48.5
%
2,618
1,962
33.4
%
2,827
2,171
30.2
%
3,025
2,300
31.5
%
11,040
8,163
35.2
%
Total PMI
180,809
174,278
3.7
%
197,729
192,015
3.0
%
203,495
197,456
3.1
%
193,635
189,090
2.4
%
775,669
752,839
3.0
%
Note: Total Oral Smoke-Free Products excludes snuff, snuff leaf and U.S. chew. Sum of product categories or segments might not foot to total PMI due to roundings. U.S. excludes cigars.
Schedule 2
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Oral Smoke-Free Products Shipment Volume
Shipments in million cans
Quarters Ended
March 31
Quarters Ended
June 30
Quarters Ended
September 30
Quarters Ended
December 31
Years Ended
December 31
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
Nicotine Pouches
International Smoke-Free
14.2
8.0
75.9
%
14.8
9.6
54.4
%
15.5
9.2
68.2
%
19.0
9.4
+100%
63.5
36.3
75.0
%
U.S.
131.6
73.2
79.7
%
135.1
89.9
50.2
%
149.1
105.4
41.4
%
164.7
116.3
41.7
%
580.5
384.8
50.8
%
Total PMI
145.7
81.3
79.3
%
149.9
99.5
50.6
%
164.6
114.6
43.6
%
183.8
125.7
46.2
%
644.0
421.1
52.9
%
Snus, Moist Snuff & Other Oral
International Smoke-Free
61.8
55.7
10.9
%
59.0
62.6
(5.8)
%
61.2
60.4
1.3
%
58.1
61.9
(6.1)
%
240.1
240.6
(0.2)
%
U.S.
35.1
36.4
(3.4)
%
34.9
35.3
(1.1)
%
34.8
34.0
2.5
%
32.7
32.0
2.1
%
137.5
137.6
(0.1)
%
Total PMI
96.9
92.1
5.3
%
93.9
97.9
(4.1)
%
96.0
94.4
1.7
%
90.8
93.9
(3.3)
%
377.6
378.2
(0.2)
%
Total
International Smoke-Free
75.9
63.7
19.1
%
73.8
72.2
2.2
%
76.7
69.6
10.2
%
77.1
71.3
8.2
%
303.6
276.9
9.6
%
U.S.
166.7
109.6
52.1
%
170.0
125.2
35.8
%
183.9
139.4
31.9
%
197.4
148.3
33.1
%
718.0
522.5
37.4
%
Total PMI
242.6
173.3
40.0
%
243.8
197.4
23.5
%
260.7
209.0
24.7
%
274.6
219.6
25.0
%
1,021.6
799.3
27.8
%
Shipments in million equivalent units
Quarters Ended
March 31
Quarters Ended
June 30
Quarters Ended
September 30
Quarters Ended
December 31
Years Ended
December 31
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
2024
2023
% Change
Nicotine Pouches
International Smoke-Free
292
170
71.6
%
303
200
51.2
%
316
194
63.4
%
380
197
93.0
%
1,291
761
69.7
%
U.S.
1,973
1,098
79.7
%
2,026
1,348
50.2
%
2,237
1,581
41.4
%
2,471
1,745
41.7
%
8,707
5,773
50.8
%
Total PMI
2,265
1,268
78.6
%
2,329
1,549
50.4
%
2,553
1,775
43.8
%
2,851
1,941
46.9
%
9,998
6,533
53.0
%
Snus, Moist Snuff & Other Oral
International Smoke-Free
1,318
1,179
11.8
%
1,262
1,324
(4.7)
%
1,304
1,275
2.3
%
1,233
1,307
(5.6)
%
5,117
5,084
0.7
%
U.S.
596
632
(5.6)
%
592
614
(3.5)
%
591
590
0.2
%
553
555
(0.3)
%
2,333
2,390
(2.4)
%
Total PMI
1,914
1,810
5.7
%
1,854
1,937
(4.3)
%
1,894
1,864
1.6
%
1,787
1,862
(4.0)
%
7,450
7,474
(0.3)
%
Total
International Smoke-Free
1,610
1,349
19.4
%
1,565
1,524
2.7
%
1,620
1,468
10.3
%
1,613
1,504
7.3
%
6,408
5,845
9.6
%
U.S.
2,570
1,730
48.5
%
2,618
1,962
33.4
%
2,827
2,171
30.2
%
3,025
2,300
31.5
%
11,040
8,163
35.2
%
Total PMI
4,180
3,079
35.7
%
4,183
3,486
20.0
%
4,447
3,640
22.2
%
4,638
3,802
22.0
%
17,448
14,007
24.6
%
Note: Total Oral Smoke-Free Products excludes snuff, snuff leaf and U.S. chew. Sum of product categories or segments might not foot to total PMI due to roundings.
Schedule 3 (1/5)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Net
Revenues
Currency
Net
Revenues
excluding Currency
Acquisitions / Divestitures
Net
Revenues excl. Currency &
Acquisitions / Divestitures
Quarters Ended
March 31,
Net
Revenues
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
PMI
2023
% Change
$2,850
$(106)
$2,956
$—
$2,956
International Smoke-Free
$2,423
17.7
%
22.0
%
22.0
%
5,299
(90)
5,389
—
5,389
International Combustibles
5,087
(1)
4.2
%
5.9
%
5.9
%
644
2
642
—
642
U.S.
509
26.5
%
26.1
%
26.1
%
$8,793
$(194)
$8,987
$—
$8,987
Total PMI
$8,019
9.7
%
12.1
%
12.1
%
2024
Smoke-Free
2023
% Change
$2,850
$(106)
$2,956
$—
$2,956
International Smoke-Free
$2,423
17.7
%
22.0
%
22.0
%
535
2
533
—
533
U.S.
373
43.6
%
43.1
%
43.1
%
90
2
88
—
88
of which, Wellness
86
4.9
%
2.7
%
2.7
%
$3,386
$(104)
$3,489
$—
$3,489
Total Smoke-Free
$2,796
21.1
%
24.8
%
24.8
%
2024
Combustible Tobacco
2023
% Change
$5,299
$(90)
$5,389
$—
$5,389
International Combustibles
$5,087
(1)
4.2
%
5.9
%
5.9
%
108
—
108
—
108
U.S.
136
(20.3)
%
(20.3)
%
(20.3)
%
$5,407
$(90)
$5,497
$—
$5,497
Total Combustible Tobacco
$5,223
3.5
%
5.2
%
5.2
%
(1) Includes a reduction in net revenues of $80 million related to the termination of a distribution arrangement in the Middle East
Note: Sum of product categories or segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 3 (2/5)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Net
Revenues
Currency
Net
Revenues
excluding Currency
Acquisitions / Divestitures
Net
Revenues excl. Currency &
Acquisitions / Divestitures
Quarters Ended
June 30,
Net
Revenues
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
PMI
2023
% Change
$3,015
$(148)
$3,163
$—
$3,163
International Smoke-Free
$2,756
9.4
%
14.8
%
14.8
%
5,748
(211)
5,959
—
5,959
International Combustibles
5,641
1.9
%
5.6
%
5.6
%
705
—
705
—
705
U.S.
570
23.7
%
23.7
%
23.7
%
$9,468
$(358)
$9,826
$—
$9,826
Total PMI
$8,967
5.6
%
9.6
%
9.6
%
2024
Smoke-Free
2023
% Change
$3,015
$(148)
$3,163
$—
$3,163
International Smoke-Free
$2,756
9.4
%
14.8
%
14.8
%
595
—
595
—
595
U.S.
421
41.2
%
41.2
%
41.2
%
80
—
80
—
80
of which, Wellness
77
4.7
%
5.0
%
5.0
%
$3,610
$(148)
$3,758
$—
$3,758
Total Smoke-Free
$3,178
13.6
%
18.3
%
18.3
%
2024
Combustible Tobacco
2023
% Change
$5,748
$(211)
$5,959
$—
$5,959
International Combustibles
$5,641
1.9
%
5.6
%
5.6
%
110
—
110
—
110
U.S.
148
(25.9)
%
(25.9)
%
(25.9)
%
$5,858
$(211)
$6,069
$—
$6,069
Total Combustible Tobacco
$5,790
1.2
%
4.8
%
4.8
%
Note: Sum of product categories or segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 3 (3/5)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Net
Revenues
Currency
Net
Revenues
excluding Currency
Acquisitions / Divestitures
Net
Revenues excl. Currency &
Acquisitions / Divestitures
Quarters Ended
September 30,
Net
Revenues
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
PMI
2023
% Change
$3,101
$(87)
$3,189
$—
$3,189
International Smoke-Free
$2,865
8.2
%
11.3
%
11.3
%
6,041
(200)
6,241
—
6,241
International Combustibles
5,784
4.4
%
7.9
%
7.9
%
769
—
769
—
769
U.S.
492
56.3
%
56.4
%
56.4
%
$9,911
$(289)
$10,200
$—
$10,200
Total PMI
$9,141
8.4
%
11.6
%
11.6
%
2024
Smoke-Free
2023
% Change
$3,101
$(87)
$3,189
$—
$3,189
International Smoke-Free
$2,865
8.2
%
11.3
%
11.3
%
675
—
676
—
676
U.S.
443
52.6
%
52.7
%
52.7
%
76
—
76
—
76
of which, Wellness
74
1.6
%
2.2
%
2.2
%
$3,777
$(88)
$3,864
$—
$3,864
Total Smoke-Free
$3,308
14.2
%
16.8
%
16.8
%
2024
Combustible Tobacco
2023
% Change
$6,041
$(200)
$6,241
$—
$6,241
International Combustibles
$5,784
4.4
%
7.9
%
7.9
%
93
—
93
—
93
U.S.
49
90.6
%
90.6
%
90.6
%
$6,134
$(200)
$6,334
$—
$6,334
Total Combustible Tobacco
$5,833
5.2
%
8.6
%
8.6
%
Note: Sum of product categories or segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 3 (4/5)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Net
Revenues
Currency
Net
Revenues
excluding Currency
Acquisitions / Divestitures
Net
Revenues excl. Currency &
Acquisitions / Divestitures
Quarters Ended
December 31,
Net
Revenues
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
PMI
2023
% Change
$3,159
$7
$3,151
$—
$3,151
International Smoke-Free
$3,057
3.3
%
3.1
%
3.1
%
5,720
(10)
5,730
—
5,730
International Combustibles
5,391
6.1
%
6.3
%
6.3
%
827
2
826
—
826
U.S.
599
38.1
%
37.8
%
37.8
%
$9,706
$—
$9,706
$—
$9,706
Total PMI
$9,047
7.3
%
7.3
%
7.3
%
2024
Smoke-Free
2023
% Change
$3,159
$7
$3,151
$—
$3,151
International Smoke-Free
$3,057
3.3
%
3.1
%
3.1
%
728
2
727
—
727
U.S.
501
45.3
%
44.9
%
44.9
%
87
2
85
—
85
of which, Wellness
69
26.4
%
23.9
%
23.9
%
$3,887
$9
$3,878
$—
$3,878
Total Smoke-Free
$3,558
9.2
%
9.0
%
9.0
%
2024
Combustible Tobacco
2023
% Change
$5,720
$(10)
$5,730
$—
$5,730
International Combustibles
$5,391
6.1
%
6.3
%
6.3
%
99
—
99
—
99
U.S.
98
1.1
%
1.1
%
1.1
%
$5,819
$(10)
$5,829
$—
$5,829
Total Combustible Tobacco
$5,489
6.0
%
6.2
%
6.2
%
Note: Sum of product categories or segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 3 (5/5)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Net
Revenues
Currency
Net
Revenues
excluding Currency
Acquisitions / Divestitures
Net
Revenues excl. Currency &
Acquisitions / Divestitures
Years Ended
December 31,
Net
Revenues
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
PMI
2023
% Change
$12,126
$(333)
$12,459
$—
$12,459
International Smoke-Free
$11,102
9.2
%
12.2
%
12.2
%
22,807
(511)
23,319
—
23,319
International Combustibles
21,903
(1)
4.1
%
6.5
%
6.5
%
2,944
3
2,941
—
2,941
U.S.
2,169
35.7
%
35.6
%
35.6
%
$37,878
$(841)
$38,719
$—
$38,719
Total PMI
$35,174
7.7
%
10.1
%
10.1
%
2024
Smoke-Free
2023
% Change
$12,126
$(333)
$12,459
$—
$12,459
International Smoke-Free
$11,102
9.2
%
12.2
%
12.2
%
2,534
3
2,531
—
2,531
U.S.
1,738
45.8
%
45.6
%
45.6
%
333
3
330
—
330
of which, Wellness
306
8.9
%
7.9
%
7.9
%
$14,660
$(330)
$14,990
$—
$14,990
Total Smoke-Free
$12,840
14.2
%
16.7
%
16.7
%
2024
Combustible Tobacco
2023
% Change
$22,807
$(511)
$23,319
$—
$23,319
International Combustibles
$21,903
(1)
4.1
%
6.5
%
6.5
%
410
—
410
—
410
U.S.
431
(4.8)
%
(4.8)
%
(4.8)
%
$23,218
$(511)
$23,729
$—
$23,729
Total Combustible Tobacco
$22,334
4.0
%
6.2
%
6.2
%
(1) Includes a reduction in net revenues of $80 million related to the termination of a distribution arrangement in the Middle East
Note: Sum of product categories or segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 4
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Net Revenues to Adjusted Net Revenues, excluding Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Net
Revenues
Special Items
Adjusted Net
Revenues
Currency
Adjusted Net
Revenues excluding Currency
Acqui-sitions / Divestitures
Adjusted
Net
Revenues excluding Currency
& Acquisitions / Divestitures
Net
Revenues
Special Items(1)
Adjusted Net
Revenues
Total
Excluding Currency
Excluding Currency
& Acquisitions / Divestitures
2024
Quarters Ended
March 31,
2023
% Change
$2,850
$—
$2,850
$(106)
$2,956
$—
$2,956
International Smoke-Free
$2,423
$—
$2,423
17.7
%
22.0
%
22.0
%
5,299
—
5,299
(90)
5,389
—
5,389
International Combustibles
5,087
(80)
5,167
2.5
%
4.3
%
4.3
%
644
—
644
2
642
—
642
U.S.
509
—
509
26.5
%
26.1
%
26.1
%
$8,793
$—
$8,793
$(194)
$8,987
$—
$8,987
Total PMI
$8,019
$(80)
$8,099
8.6
%
11.0
%
11.0
%
2024
Quarters Ended
June 30,
2023
% Change
$3,015
$—
$3,015
$(148)
$3,163
$—
$3,163
International Smoke-Free
$2,756
$—
$2,756
9.4
%
14.8
%
14.8
%
5,748
—
5,748
(211)
5,959
—
5,959
International Combustibles
5,641
—
5,641
1.9
%
5.6
%
5.6
%
705
—
705
—
705
—
705
U.S.
570
—
570
23.7
%
23.7
%
23.7
%
$9,468
$—
$9,468
$(358)
$9,826
$—
$9,826
Total PMI
$8,967
$—
$8,967
5.6
%
9.6
%
9.6
%
2024
Quarters Ended
September 30,
2023
% Change
$3,101
$—
$3,101
$(87)
$3,189
$—
$3,189
International Smoke-Free
$2,865
$—
$2,865
8.2
%
11.3
%
11.3
%
6,041
—
6,041
(200)
6,241
—
6,241
International Combustibles
5,784
—
5,784
4.4
%
7.9
%
7.9
%
769
—
769
—
769
—
769
U.S.
492
—
492
56.3
%
56.4
%
56.4
%
$9,911
$—
$9,911
$(289)
$10,200
$—
$10,200
Total PMI
$9,141
$—
$9,141
8.4
%
11.6
%
11.6
%
2024
Quarters Ended
December 31,
2023
% Change
$3,159
$—
$3,159
$7
$3,151
$—
$3,151
International Smoke-Free
$3,057
$—
$3,057
3.3
%
3.1
%
3.1
%
5,720
—
5,720
(10)
5,730
—
5,730
International Combustibles
5,391
—
5,391
6.1
%
6.3
%
6.3
%
827
—
827
2
826
—
826
U.S.
599
—
599
38.1
%
37.8
%
37.8
%
$9,706
$—
$9,706
$—
$9,706
$—
$9,706
Total PMI
$9,047
$—
$9,047
7.3
%
7.3
%
7.3
%
2024
Years Ended
December 31,
2023
% Change
$12,126
$—
$12,126
$(333)
$12,459
$—
$12,459
International Smoke-Free
$11,102
$—
$11,102
9.2
%
12.2
%
12.2
%
22,807
—
22,807
(511)
23,319
—
23,319
International Combustibles
21,903
(80)
21,983
3.8
%
6.1
%
6.1
%
2,944
—
2,944
3
2,941
—
2,941
U.S.
2,169
—
2,169
35.7
%
35.6
%
35.6
%
$37,878
$—
$37,878
$(841)
$38,719
$—
$38,719
Total PMI
$35,174
$(80)
$35,254
7.4
%
9.8
%
9.8
%
(1) First-quarter and full year 2023 reflects a reduction in net revenues of $80 million related to the termination of a distribution arrangement in the Middle East
Schedule 5
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments of Gross Profit for the Impact of Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Gross
Profit
Currency
Gross Profit
excluding Currency
Acquisitions / Divestitures
Gross Profit excl. Currency & Acquisitions / Divestitures
Gross
Profit
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
Quarters Ended
March 31,
2023
% Change
$1,768
$(108)
$1,876
$—
$1,876
International Smoke-Free
$1,396
26.6
%
34.4
%
34.4
%
3,407
(79)
3,487
—
3,487
International Combustibles
3,339
2.1
%
4.4
%
4.4
%
429
1
428
—
428
U.S.
252
70.2
%
69.8
%
69.8
%
$5,604
$(186)
$5,790
$—
$5,790
Total PMI
$4,987
12.4
%
16.1
%
16.1
%
2024
Quarters Ended
June 30,
2023
% Change
$1,916
$(146)
$2,062
$—
$2,062
International Smoke-Free
$1,760
8.9
%
17.2
%
17.2
%
3,731
(151)
3,882
12
3,870
International Combustibles
3,659
2.0
%
6.1
%
5.8
%
479
—
479
—
479
U.S.
326
47.1
%
47.2
%
47.2
%
$6,127
$(296)
$6,423
$12
$6,411
Total PMI
$5,744
6.7
%
11.8
%
11.6
%
2024
Quarters Ended
September 30,
2023
% Change
$2,088
$(81)
$2,169
$—
$2,169
International Smoke-Free
$1,930
8.2
%
12.4
%
12.4
%
3,919
(144)
4,063
21
4,042
International Combustibles
3,705
5.8
%
9.7
%
9.1
%
541
—
541
—
541
U.S.
346
56.7
%
56.6
%
56.6
%
$6,549
$(225)
$6,774
$21
$6,753
Total PMI
$5,981
9.5
%
13.3
%
12.9
%
2024
Quarters Ended
December 31,
2023
% Change
$2,058
$(13)
$2,071
$—
$2,071
International Smoke-Free
$1,935
6.3
%
7.0
%
7.0
%
3,629
(18)
3,648
14
3,634
International Combustibles
3,270
11.0
%
11.6
%
11.1
%
601
—
601
—
601
U.S.
382
57.5
%
57.4
%
57.4
%
$6,288
$(32)
$6,320
$14
$6,306
Total PMI
$5,586
12.6
%
13.1
%
12.9
%
2024
Years Ended
December 31,
2023
% Change
$7,831
$(347)
$8,178
$—
$8,178
International Smoke-Free
$7,021
11.5
%
16.5
%
16.5
%
14,687
(393)
15,080
47
15,033
International Combustibles
13,972
5.1
%
7.9
%
7.6
%
2,050
2
2,049
—
2,049
U.S.
1,305
57.1
%
57.0
%
57.0
%
$24,568
$(739)
$25,307
$47
$25,260
Total PMI
$22,298
10.2
%
13.5
%
13.3
%
Note: Sum of segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 6 (1/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Gross Profit to Adjusted Gross Profit, excluding Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Gross
Profit
Special
Items
(1)
Adjusted
Gross
Profit
Currency
Adjusted Gross Profit
excluding Currency
Acquisitions / Divestitures
Adjusted Gross Profit excl. Currency & Acquisitions / Divestitures
Gross
Profit
Special
Items
(1)
Adjusted
Gross
Profit
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
Quarters Ended
March 31,
2023
% Change
$1,768
$(1)
$1,769
$(108)
$1,877
$—
$1,877
International Smoke-Free
$1,396
$(1)
$1,397
26.6
%
34.3
%
34.3
%
3,407
—
3,407
(79)
3,487
—
3,487
International Combustibles
3,339
(80)
3,419
(0.3)
%
2.0
%
2.0
%
429
(16)
445
1
443
—
443
U.S.
252
(39)
291
52.7
%
52.3
%
52.3
%
$5,604
$(16)
$5,620
$(186)
$5,806
$—
$5,806
Total PMI
$4,987
$(120)
$5,107
10.0
%
13.7
%
13.7
%
2024
Quarters Ended
June 30,
2023
% Change
$1,916
$(1)
$1,917
$(146)
$2,063
$—
$2,063
International Smoke-Free
$1,760
$(1)
$1,761
8.9
%
17.2
%
17.2
%
3,731
—
3,731
(151)
3,882
12
3,870
International Combustibles
3,659
—
3,659
2.0
%
6.1
%
5.8
%
479
(15)
494
—
494
—
494
U.S.
326
(21)
347
42.5
%
42.5
%
42.5
%
$6,127
$(16)
$6,143
$(296)
$6,439
$12
$6,427
Total PMI
$5,744
$(22)
$5,766
6.5
%
11.7
%
11.5
%
2024
Quarters Ended
September 30,
2023
% Change
$2,088
$(1)
$2,089
$(81)
$2,170
$—
$2,170
International Smoke-Free
$1,930
$(1)
$1,931
8.2
%
12.4
%
12.4
%
3,919
—
3,919
(144)
4,063
21
4,042
International Combustibles
3,705
(10)
3,715
5.5
%
9.4
%
8.8
%
541
(13)
555
—
555
—
555
U.S.
346
1
344
61.2
%
61.1
%
61.1
%
$6,549
$(14)
$6,563
$(225)
$6,788
$21
$6,767
Total PMI
$5,981
$(10)
$5,991
9.5
%
13.3
%
13.0
%
(1) 2024 first-quarter reflects amortization of intangibles, all amounts are related to cost of goods sold. 2023 first-quarter includes termination of distribution arrangement in the Middle East ($80 million in International Combustibles, reflected as a reduction to net revenues), Swedish Match AB acquisition accounting related items ($18 million in U.S., reflected in cost of good sold) and amortization of intangibles ($21 million in U.S., and $1 million in International Smoke-Free, reflected in cost of goods sold)
2024 second-quarter and 2023 second-quarter reflects amortization of intangibles, all amounts are related to cost of goods sold.
2024 third-quarter reflects amortization of intangibles, all amounts are related to cost of goods sold. 2023 third-quarter includes charges related to the war in Ukraine ($10 million in International Combustibles) and mainly amortization of intangibles in cost of goods sold ($1 million in International Smoke-free and $1 million reduction in U.S.).
Note: Sum of segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 6 (2/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Gross Profit to Adjusted Gross Profit, excluding Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Gross
Profit
Special
Items
(1)
Adjusted
Gross
Profit
Currency
Adjusted Gross Profit
excluding Currency
Acquisitions / Divestitures
Adjusted Gross Profit excl. Currency & Acquisitions / Divestitures
Gross
Profit
Special
Items
(1)
Adjusted
Gross
Profit
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
Quarters Ended
December 31,
2023
% Change
$2,058
$(1)
$2,058
$(13)
$2,072
$—
$2,072
International Smoke-Free
$1,935
$—
$1,936
6.3
%
7.0
%
7.0
%
3,629
—
3,629
(18)
3,648
14
3,634
International Combustibles
3,270
(4)
3,274
10.9
%
11.4
%
11.0
%
601
(5)
606
—
605
—
605
U.S.
382
(15)
396
52.8
%
52.7
%
52.7
%
$6,288
$(5)
$6,293
$(32)
$6,325
$14
$6,311
Total PMI
$5,586
$(18)
$5,604
12.3
%
12.9
%
12.6
%
2024
Years Ended
December 31,
2023
% Change
$7,831
$(2)
$7,833
$(347)
$8,181
$—
$8,181
International Smoke-Free
$7,021
$(3)
$7,024
11.5
%
16.5
%
16.5
%
14,687
—
14,687
(393)
15,080
47
15,033
International Combustibles
13,972
(94)
14,066
4.4
%
7.2
%
6.9
%
2,050
(49)
2,099
2
2,098
—
2,098
U.S.
1,305
(74)
1,379
52.3
%
52.2
%
52.2
%
$24,568
$(51)
$24,619
$(739)
$25,358
$47
$25,311
Total PMI
$22,298
$(170)
$22,468
9.6
%
12.9
%
12.7
%
(1) 2024 fourth-quarter reflects amortization of intangibles, all amounts are related to cost of goods sold. 2023 fourth-quarter includes charges related to the war in Ukraine ($4 million in International Combustibles) and mainly amortization of intangibles in cost of goods sold ($15 million in U.S.).
2024 full-year reflects amortization of intangibles, all amounts are related to cost of goods sold. 2023 full-year includes termination of distribution arrangement in the Middle East ($80 million in International Combustibles), Swedish Match AB acquisition accounting related items ($18 million in U.S.), charges related to the war in Ukraine ($13 million in International Combustibles) and mainly amortization of intangibles in cost of goods sold ($56 million in U.S. and $3 million in International Smoke-Free).
Note: Sum of segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 7
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Adjusted Gross Profit Margin, excluding Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Adjusted Gross Profit
(1)
Adjusted
Net Revenues
(2)
Adjusted Gross Profit
Margin
Adjusted Gross Profit
excluding Currency
(1)
Adjusted
Net Revenues excluding Currency
(2)
Adjusted Gross Profit Margin excluding Currency
Adjusted Gross Profit excluding Currency
& Acqui-sitions / Divestitures
(1)
Adjusted
Net Revenues excluding Currency
& Acqui-sitions / Divestitures
(2)
Adjusted Gross Profit Margin excluding Currency
& Acqui-sitions / Divestitures
Adjusted Gross Profit
(1)
Adjusted
Net Revenues
(2)
Adjusted Gross Profit
Margin
Adjusted Gross Profit
Margin
Adjusted Gross Profit Margin excluding Currency
Adjusted Gross Profit Margin excluding Currency
& Acqui-sitions / Divestitures
2024
Quarters Ended
March 31,
2023
% Points Change
$1,769
$2,850
62.1
%
$1,877
$2,956
63.5
%
$1,877
$2,956
63.5
%
International Smoke-Free
$1,397
$2,423
57.7
%
4.4
5.8
5.8
3,407
5,299
64.3
%
3,487
5,389
64.7
%
3,487
5,389
64.7
%
International Combustibles
3,419
5,167
66.2
%
(1.9)
(1.5)
(1.5)
445
644
69.1
%
443
642
69.1
%
443
642
69.1
%
U.S.
291
509
57.2
%
11.9
11.9
11.9
$5,620
$8,793
63.9
%
$5,806
$8,987
64.6
%
$5,806
$8,987
64.6
%
Total PMI
$5,107
$8,099
63.1
%
0.8
1.5
1.5
2024
Quarters Ended
June 30,
2023
% Points Change
$1,917
$3,015
63.6
%
$2,063
$3,163
65.2
%
$2,063
$3,163
65.2
%
International Smoke-Free
$1,761
$2,756
63.9
%
(0.3)
1.3
1.3
3,731
5,748
64.9
%
3,882
5,959
65.1
%
3,870
5,959
64.9
%
International Combustibles
3,659
5,641
64.9
%
—
0.2
—
494
705
70.1
%
494
705
70.1
%
494
705
70.1
%
U.S.
347
570
60.9
%
9.2
9.2
9.2
$6,143
$9,468
64.9
%
$6,439
$9,826
65.5
%
$6,427
$9,826
65.4
%
Total PMI
$5,766
$8,967
64.3
%
0.6
1.2
1.1
2024
Quarters Ended
September 30,
2023
% Points Change
$2,089
$3,101
67.4
%
$2,170
$3,189
68.1
%
$2,170
$3,189
68.1
%
International Smoke-Free
$1,931
$2,865
67.4
%
—
0.7
0.7
3,919
6,041
64.9
%
4,063
6,241
65.1
%
4,042
6,241
64.8
%
International Combustibles
3,715
5,784
64.2
%
0.7
0.9
0.6
555
769
72.2
%
555
769
72.1
%
555
769
72.1
%
U.S.
344
492
70.0
%
2.2
2.1
2.1
$6,563
$9,911
66.2
%
$6,788
$10,200
66.5
%
$6,767
$10,200
66.3
%
Total PMI
$5,991
$9,141
65.5
%
0.7
1.0
0.8
2024
Quarters Ended
December 31,
2023
% Points Change
$2,058
$3,159
65.2
%
$2,072
$3,151
65.7
%
$2,072
$3,151
65.7
%
International Smoke-Free
$1,936
$3,057
63.3
%
1.9
2.4
2.4
3,629
5,720
63.5
%
3,648
5,730
63.7
%
3,634
5,730
63.4
%
International Combustibles
3,274
5,391
60.7
%
2.8
3.0
2.7
606
827
73.2
%
605
826
73.3
%
605
826
73.3
%
U.S.
396
599
66.2
%
7.0
7.1
7.1
$6,293
$9,706
64.8
%
$6,325
$9,706
65.2
%
$6,311
$9,706
65.0
%
Total PMI
$5,604
$9,047
61.9
%
2.9
3.3
3.1
2024
Years Ended
December 31,
2023
% Points Change
$7,833
$12,126
64.6
%
$8,181
$12,459
65.7
%
$8,181
$12,459
65.7
%
International Smoke-Free
$7,024
$11,102
63.3
%
1.3
2.4
2.4
14,687
22,807
64.4
%
15,080
23,319
64.7
%
15,033
23,319
64.5
%
International Combustibles
14,066
21,983
64.0
%
0.4
0.7
0.5
2,099
2,944
71.3
%
2,098
2,941
71.3
%
2,098
2,941
71.3
%
U.S.
1,379
2,169
63.5
%
7.8
7.8
7.8
$24,619
$37,878
65.0
%
$25,358
$38,719
65.5
%
$25,311
$38,719
65.4
%
Total PMI
$22,468
$35,254
63.7
%
1.3
1.8
1.7
(1) For the calculation of Adjusted Gross Profit, Adjusted Gross Profit excluding currency and Adjusted Gross Profit excluding currency and acquisitions/divestitures, refer to Schedule 6
(2) For the calculation of Adjusted Net Revenues, Adjusted Net Revenues excluding currency and Adjusted Net Revenues excluding currency and acquisitions/divestitures, refer to Schedules 3 and 4
Schedule 8
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments of Operating Companies Income for the Impact of Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Operating Companies Income (Loss)
Currency
Operating Companies Income excluding Currency
Acquisitions / Divestitures
Operating Companies Income excluding Currency & Acquisitions / Divestitures
Operating Companies Income (Loss)
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
Quarters Ended
March 31,
2023
% Change
$3,355
$(195)
$3,550
$—
$3,550
International
$2,800
19.8
%
26.8
%
26.8
%
22
(1)
23
—
23
U.S.
94
(76.8)
%
(75.7)
%
(75.7)
%
$3,377
$(196)
$3,573
$—
$3,573
Total PMI
$2,894
16.7
%
23.5
%
23.5
%
2024
Quarters Ended
June 30,
2023
% Change
$3,523
$(263)
$3,786
$12
$3,774
International
$3,214
9.6
%
17.8
%
17.4
%
88
—
89
—
89
U.S.
(553)
+100%
+100%
+100%
$3,611
$(264)
$3,875
$12
$3,863
Total PMI
$2,661
35.7
%
45.6
%
45.2
%
2024
Quarters Ended
September 30,
2023
% Change
$3,883
$(200)
$4,083
$21
$4,062
International
$3,513
10.6
%
16.2
%
15.6
%
(114)
—
(115)
—
(115)
U.S.
52
-(100)%
-(100)%
-(100)%
$3,770
$(199)
$3,969
$21
$3,948
Total PMI
$3,563
5.8
%
11.4
%
10.8
%
2024
Quarters Ended
December 31,
2023
% Change
$3,326
$(57)
$3,383
$15
$3,368
International
$3,063
8.6
%
10.4
%
9.9
%
63
(4)
67
—
67
U.S.
82
(23.1)
%
(18.3)
%
(18.3)
%
$3,389
$(61)
$3,450
$15
$3,435
Total PMI
$3,146
7.7
%
9.7
%
9.2
%
2024
Years Ended
December 31,
2023
% Change
$14,088
$(715)
$14,802
$48
$14,754
International
$12,590
11.9
%
17.6
%
17.2
%
59
(5)
65
—
65
U.S.
(325)
+100%
+100%
+100%
$14,147
$(720)
$14,867
$48
$14,819
Total PMI
$12,264
15.4
%
21.2
%
20.8
%
Note: Sum of segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 9
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Companies Income to Adjusted Operating Companies Income, excluding Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Operating Companies Income (Loss)
Special
Items
(1)
Adjusted
Operating Companies Income
Currency
Adjusted Operating Companies Income
excluding Currency
Acquisitions / Divestitures
Adjusted Operating Companies Income excl. Currency & Acquisitions / Divestitures
Operating Companies Income (Loss)
Special
Items
(1)
Adjusted
Operating Companies Income
Total
Excluding Currency
Excluding Currency & Acquisitions / Divestitures
2024
Quarters Ended
March 31,
2023
% Change
$3,355
$(57)
$3,412
$(195)
$3,607
$—
$3,607
International
$2,800
$(225)
$3,024
12.8
%
19.3
%
19.3
%
22
(220)
242
(1)
243
—
243
U.S.
94
(63)
157
53.7
%
54.3
%
54.3
%
$3,377
$(277)
$3,654
$(196)
$3,850
$—
$3,850
Total PMI
$2,894
$(288)
$3,182
14.8
%
21.0
%
21.0
%
2024
Quarters Ended
June 30,
2023
% Change
$3,523
$(47)
$3,570
$(263)
$3,833
$12
$3,821
International
$3,214
$(240)
$3,454
3.4
%
11.0
%
10.6
%
88
(165)
253
—
254
—
254
U.S.
(553)
(726)
173
46.5
%
46.8
%
46.8
%
$3,611
$(212)
$3,823
$(264)
$4,087
$12
$4,075
Total PMI
$2,661
$(966)
$3,627
5.4
%
12.7
%
12.4
%
2024
Quarters Ended
September 30,
2023
% Change
$3,883
$(92)
$3,975
$(200)
$4,175
$21
$4,154
International
$3,513
$(235)
$3,748
6.1
%
11.4
%
10.8
%
(114)
(407)
293
—
293
—
293
U.S.
52
(129)
181
62.0
%
62.0
%
62.0
%
$3,770
$(499)
$4,269
$(199)
$4,468
$21
$4,447
Total PMI
$3,563
$(364)
$3,927
8.7
%
13.8
%
13.2
%
2024
Quarters Ended
December 31,
2023
% Change
$3,326
$(47)
$3,372
$(57)
$3,429
$15
$3,414
International
$3,063
$(80)
$3,143
7.3
%
9.1
%
8.6
%
63
(213)
277
(4)
281
—
281
U.S.
82
(83)
165
67.8
%
70.2
%
70.2
%
$3,389
$(260)
$3,649
$(61)
$3,710
$15
$3,695
Total PMI
$3,146
$(163)
$3,309
10.3
%
12.1
%
11.7
%
2024
Years Ended
December 31,
2023
% Change
$14,088
$(242)
$14,329
$(715)
$15,044
$48
$14,996
International
$12,590
$(780)
$13,369
7.2
%
12.5
%
12.2
%
59
(1,006)
1,065
(5)
1,070
—
1,070
U.S.
(325)
(1,001)
676
57.5
%
58.3
%
58.3
%
$14,147
$(1,248)
$15,395
$(720)
$16,115
$48
$16,067
Total PMI
$12,264
$(1,781)
$14,045
9.6
%
14.7
%
14.4
%
(1) For details on Special Items, refer to Schedule 12
Note: Sum of segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 10
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Adjusted Operating Companies Income Margin, excluding Currency and Acquisitions/Divestitures
($ in millions) / (Unaudited)
Adjusted Operating Companies Income
(1)
Adjusted
Net Revenues
(2)
Adjusted Operating Companies Income
Margin
Adjusted Operating Companies Income
excluding Currency
(1)
Adjusted
Net Revenues excluding Currency
(2)
Adjusted Operating Companies Income Margin excluding Currency
Adjusted Operating Companies Income excluding Currency
& Acqui-sitions / Divestitures
(1)
Adjusted
Net Revenues excluding Currency
& Acqui-sitions / Divestitures
(2)
Adjusted Operating Companies Income Margin excluding Currency
& Acqui-sitions / Divestitures
Adjusted Operating Companies Income
(1)
Adjusted
Net Revenues
(2)
Adjusted Operating Companies Income
Margin
Adjusted Operating Companies Income
Margin
Adjusted Operating Companies Income Margin excluding Currency
Adjusted Operating Companies Income Margin excluding Currency
& Acqui-sitions / Divestitures
2024
Quarters Ended
March 31,
2023
% Points Change
$3,412
$8,149
41.9
%
$3,607
$8,345
43.2
%
$3,607
$8,345
43.2
%
International
$3,024
$7,590
39.8
%
2.1
3.4
3.4
242
644
37.6
%
243
642
37.9
%
243
642
37.9
%
U.S.
157
509
31.0
%
6.6
6.9
6.9
$3,654
$8,793
41.6
%
$3,850
$8,987
42.8
%
$3,850
$8,987
42.8
%
Total PMI
$3,182
$8,099
39.3
%
2.3
3.5
3.5
2024
Quarters Ended
June 30,
2023
% Points Change
$3,570
$8,764
40.7
%
$3,833
$9,122
42.0
%
$3,821
$9,122
41.9
%
International
$3,454
$8,398
41.1
%
(0.4)
0.9
0.8
253
705
35.9
%
254
705
36.0
%
254
705
36.0
%
U.S.
173
570
30.3
%
5.6
5.7
5.7
$3,823
$9,468
40.4
%
$4,087
$9,826
41.6
%
$4,075
$9,826
41.5
%
Total PMI
$3,627
$8,967
40.4
%
—
1.2
1.1
2024
Quarters Ended
September 30,
2023
% Points Change
$3,975
$9,142
43.5
%
$4,175
$9,430
44.3
%
$4,154
$9,430
44.1
%
International
$3,748
$8,649
43.3
%
0.2
1.0
0.8
293
769
38.1
%
293
769
38.1
%
293
769
38.1
%
U.S.
181
492
36.8
%
1.3
1.3
1.3
$4,269
$9,911
43.1
%
$4,468
$10,200
43.8
%
$4,447
$10,200
43.6
%
Total PMI
$3,927
$9,141
43.0
%
0.1
0.8
0.6
2024
Quarters Ended
December 31,
2023
% Points Change
$3,372
$8,878
38.0
%
$3,429
$8,881
38.6
%
$3,414
$8,881
38.4
%
International
$3,143
$8,448
37.2
%
0.8
1.4
1.2
277
827
33.5
%
281
826
34.0
%
281
826
34.0
%
U.S.
165
599
27.5
%
6.0
6.5
6.5
$3,649
$9,706
37.6
%
$3,710
$9,706
38.2
%
$3,695
$9,706
38.1
%
Total PMI
$3,309
$9,047
36.6
%
1.0
1.6
1.5
2024
Years Ended
December 31,
2023
% Points Change
$14,329
$34,933
41.0
%
$15,044
$35,778
42.0
%
$14,996
$35,778
41.9
%
International
$13,369
$33,084
40.4
%
0.6
1.6
1.5
1,065
2,944
36.2
%
1,070
2,941
36.4
%
1,070
2,941
36.4
%
U.S.
676
2,169
31.2
%
5.0
5.2
5.2
$15,395
$37,878
40.6
%
$16,115
$38,719
41.6
%
$16,067
$38,719
41.5
%
Total PMI
$14,045
$35,254
39.8
%
0.8
1.8
1.7
(1) For the calculation of Adjusted Operating Companies Income, Adjusted Operating Companies Income excluding currency and Adjusted Operating Companies Income excluding currency and acquisitions/divestitures, refer to
Schedule 9
(2) For the calculation of Adjusted Net Revenues, Adjusted Net Revenues excluding currency and Adjusted Net Revenues excluding currency and acquisitions/divestitures, refer to Schedules 3 and 4
Schedule 11
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Net Revenues, Gross Profit and Operating Companies Income: Price, Volume/Mix and Cost/Other Variances
($ in millions) / (Unaudited)
2024 vs. 2023
Quarters Ended
March 31
Quarters Ended
June 30
Quarters Ended
September 30
Quarters Ended
December 31
Years Ended
December 31
Price
Volume/Mix
Cost/Other
Price
Volume/Mix
Cost/Other
Price
Volume/Mix
Cost/Other
Price
Volume/Mix
Cost/Other
Price
Volume/Mix
Cost/Other
Net Revenues
International Smoke-Free
$61
$472
$—
$63
$343
$—
$39
$284
$—
$(29)
$123
$—
$135
$1,222
$—
International Combustibles
382
(161)
81
493
(175)
0
577
(117)
(2)
459
(118)
(2)
1,912
(571)
76
U.S.
5
154
(27)
26
134
(25)
72
155
50
53
174
0
156
618
(2)
Total PMI
$449
$464
$55
$583
$303
$(27)
$689
$322
$48
$482
$179
$(2)
$2,203
$1,268
$74
Gross Profit
International Smoke-Free
$61
$375
$44
$63
$224
$14
$39
$176
$24
$(29)
$101
$64
$135
$875
$146
International Combustibles
382
(219)
(15)
493
(188)
(94)
577
(153)
(87)
459
(106)
11
1,912
(665)
(185)
U.S.
5
140
31
26
121
6
72
140
(16)
53
154
13
156
555
34
Total PMI
$449
$295
$59
$583
$158
$(74)
$689
$163
$(80)
$482
$148
$90
$2,203
$764
$(5)
Operating Companies Income
International
$444
$156
$151
$557
$37
$(33)
$617
$23
$(90)
$430
$(5)
$(120)
$2,047
$210
$(92)
U.S.
5
140
(216)
26
121
495
72
140
(378)
53
154
(221)
156
555
(321)
Total PMI
$449
$295
$(65)
$583
$158
$461
$689
$163
$(467)
$482
$148
$(341)
$2,203
$764
$(412)
Note: Sum of segments might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 12 (1/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income
($ in millions) / (Unaudited)
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Year Ended
March 31,
June 30,
September 30,
December 31,
December 31,
2024
2024
2024
2024
2024
PMI
Operating Companies Income
$3,377
$3,611
$3,770
$3,389
$14,147
Amortization of intangibles
(120)
(212)
(256)
(247)
(835)
Impairment of other intangibles
(27)
—
—
—
(27)
Restructuring charges
(130)
—
—
(12)
(142)
Egypt sales tax charge
—
—
(45)
—
(45)
Loss on sale of Vectura Group
—
—
(198)
(1)
(199)
Adjusted Operating Companies Income
$3,654
$3,823
$4,269
$3,649
$15,395
International
Operating Companies Income
$3,355
$3,523
$3,883
$3,326
$14,088
Amortization of intangibles
(48)
(47)
(46)
(47)
(188)
Restructuring charges
(9)
—
—
—
(9)
Egypt sales tax charge
—
—
(45)
—
(45)
Adjusted Operating Companies Income
$3,412
$3,570
$3,975
$3,372
$14,329
U.S.
Operating Companies Income
$22
$88
$(114)
$63
$59
Amortization of intangibles
(73)
(165)
(209)
(201)
(648)
Impairment of other intangibles
(26)
—
—
—
(26)
Restructuring charges
(121)
—
—
(12)
(133)
Loss on sale of Vectura Group
—
—
(198)
(1)
(199)
Adjusted Operating Companies Income
$242
$253
$293
$277
$1,065
Note: Sum of International and U.S. or special items might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 12 (2/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Year Ended
March 31,
June 30,
September 30,
December 31,
December 31,
2023
2023
2023
2023
2023
PMI
Operating Companies Income
$2,894
$2,661
$3,563
$3,146
$12,264
Amortization of intangibles
(81)
(82)
(205)
(129)
(497)
Impairment of goodwill and other intangibles
—
(680)
—
—
(680)
Restructuring charges
(109)
—
—
—
(109)
Termination of distribution arrangement in the Middle East
(80)
—
—
—
(80)
Charges related to the war in Ukraine
—
—
(19)
(34)
(53)
Swedish Match AB acquisition accounting related items
(18)
—
—
—
(18)
South Korea Indirect Tax Charge
—
(204)
—
—
(204)
Termination of agreement with Foundation for a Smoke-Free World
—
—
(140)
—
(140)
Adjusted Operating Companies Income
$3,182
$3,627
$3,927
$3,309
$14,045
International
Operating Companies Income
$2,800
$3,214
$3,513
$3,063
$12,590
Amortization of intangibles
(35)
(35)
(77)
(46)
(194)
Restructuring charges
(109)
—
—
—
(109)
Termination of distribution arrangement in the Middle East
(80)
—
—
—
(80)
Charges related to the war in Ukraine
—
—
(19)
(34)
(53)
South Korea Indirect Tax Charge
—
(204)
—
—
(204)
Termination of agreement with Foundation for a Smoke-Free World
—
—
(140)
—
(140)
Adjusted Operating Companies Income
$3,024
$3,454
$3,748
$3,143
$13,369
U.S.
Operating Companies Income
$94
$(553)
$52
$82
$(325)
Amortization of intangibles
(45)
(46)
(129)
(83)
(303)
Impairment of goodwill and other intangibles
—
(680)
—
—
(680)
Swedish Match AB acquisition accounting related items
(18)
—
—
—
(18)
Adjusted Operating Companies Income
$157
$173
$181
$165
$676
Note: Sum of International and U.S. or special items might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million.
Schedule 13
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Companies Income to Operating Income
($ in millions) / (Unaudited)
Quarters Ended
March 31
Quarters Ended
June 30
Quarters Ended
September 30
Quarters Ended
December 31
Years Ended
December 31
2024
2023
Change
Fav./(Unfav.)
2024
2023
Change
Fav./(Unfav.)
2024
2023
Change
Fav./(Unfav.)
2024
2023
Change
Fav./(Unfav.)
2024
2023
Change
Fav./(Unfav.)
Net Revenues
$8,793
$8,019
9.7
%
$9,468
$8,967
5.6
%
$9,911
$9,141
8.4
%
$9,706
$9,047
7.3
%
$37,878
$35,174
7.7
%
Less: Cost of sales
3,189
3,032
(5.2)
%
3,341
3,223
(3.7)
%
3,362
3,160
(6.4)
%
3,418
3,461
1.2
%
13,310
12,876
(3.4)
%
Gross profit
5,604
4,987
12.4
%
6,127
5,744
6.7
%
6,549
5,981
9.5
%
6,288
5,586
12.6
%
24,568
22,298
10.2
%
Less: Marketing, administration and research costs(1)
2,227
2,093
(6.4)
%
2,516
2,418
(4.1)
%
2,779
2,418
(14.9)
%
2,899
2,440
(18.8)
%
10,421
9,369
(11.2)
%
Impairment of goodwill
—
—
—
%
—
665
100.0
%
—
—
—
%
—
—
—
%
—
665
100.0
%
Operating Companies Income
3,377
2,894
16.7
%
3,611
2,661
35.7
%
3,770
3,563
5.8
%
3,389
3,146
7.7
%
14,147
12,264
15.4
%
Less: Corporate Expenses and Other
332
163
-(100)%
167
95
(75.8)
%
116
193
39.9
%
130
257
49.4
%
745
708
(5.2)
%
Operating Income
$3,045
$2,731
11.5
%
$3,444
$2,566
34.2
%
$3,654
$3,370
8.4
%
$3,259
$2,889
12.8
%
$13,402
$11,556
16.0
%
(1) excluding Corporate Expenses and Other
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 6 | — | 1 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 0 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | 0 | 0 |
| Buybacks share repurchase, buyback program | 0 | — | 0 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · smoke-free volume growth
“Total Smoke-Free [shipment volume] Total PMI 158,842 vs 139,890, +13.5%”
Theme · margin expansion
“Adjusted Operating Companies Income Margin Total PMI 39.8% vs prior 39.0%, +0.8 pp”
Theme · currency headwinds
“Net Revenues Total PMI $37,878 [reported] vs $35,174, +7.7%; excluding Currency +10.1%”
Theme · nicotine pouch momentum
“Nicotine Pouches Total PMI 9,998 [million equivalent units] vs 6,533, +53.0%”
Theme · U.S. business expansion
“U.S. [smoke-free shipment volume] 11,040 vs 8,163, +35.2%”
Theme · special charges and impairments
“Loss on sale of Vectura Group -$199; Egypt sales tax charge -$45; Restructuring charges -$142”
Source: SEC EDGAR · public domain · Highlights by Palanor