Philip Morris’ Shipment Volume in EU Boosted by 2.4%
Philip Morris International’s cigarette shipment volume throughout the Q2 at 222,801 million, declined by 2.7 % in comparison to that of 2013, 228,899 million. Volume was raised in the EU by 2.4 % to 49,913 million, however it has declined in other company’s regions: by 1.0 % in Latin America & Canada (LAC); by 2.8 % in Eastern Europe, Middle East & Africa; and approximately 6.1 % in Asia.
PMI’s strong overall performance in the EU was claimed to have been motivated by sales in Germany, Italy and the UK, mostly compensated by those in France, Greece and Hungary. Overall cigarette shipments of Marlboro increased by 1.0 %, while L&M's have declined by 3.5 %. Cigarette shipments of Bond Street have fallen by 4.0 %; those of Philip Morris lowered by 11.1 %; those of Parliament on the other hand have raised by 7.6 %; those of Chesterfield also demonstrated positive results, with a boost of 33.2 %; and those of Lark declined by 13.1 %.
PMI’s shipment volume of other smoking products (OSP), in cigarette equivalent units, has raised by 4.2 %, while shipment volume for cigarettes and OSP in cigarette equivalents dropped by 2.4 %. “As we estimated, we accomplished solid fundamental outcomes in the Q2, mostly powered by a reduced volume decrease, solid pricing and strong market share,” stated CEO Andre Calantzopoulos. “As to the second half of the year, we count on more demanding quarterly evaluations, mainly in the Q4– which, in 2013, witnessed currency-neutral earnings per share grow by 19.4 % – caused by identified business issues, especially in Asia, the timing of assets behind the commercialization of our reduced-risk products and the launch of Marlboro Red 2.0, as well as costs associated with our production footprint optimization projects. “These days we are reaffirming the diluted earnings per share guidance for the whole year. As earlier disclosed major price discounting at the low end of the market in Australia, along with the effect of plain packaging, could position us at the lower end of our direction for currency-neutral adjusted diluted earnings per share increase of 6 % for the whole year.” At the same time, PMI’s cigarette volume shipments throughout the first half of the year dropped by 3.5 % in comparison to those of the similar period in 2013.