Philip Morris (TABAK) H2 2024 earnings summary

Executive summary

• Consolidated revenues, net of excise tax and VAT, increased by 5% year-over-year to CZK 21.6 billion, with operating profit up 3.4% and net income stable at CZK 3.3 billion.

• Smoke-free products now account for 60% of consolidated net revenues, reflecting the company's transformation strategy.

• The company launched new products, including ZYN nicotine pouches and IQOS ILUMA i PRIME, and expanded sustainability reporting in line with CSRD.

Financial highlights

• Revenues, net of excise tax and VAT, rose 5% year-over-year to CZK 21.6 billion; operating profit increased 3.4% to CZK 4.0 billion.

• Net income remained stable at CZK 3.3 billion; earnings per share were CZK 1,218.

• Czech Republic revenues grew 4.4% to CZK 12.6 billion; Slovakia revenues rose 7.2% to EUR 249 million.

• Shipments in both markets declined due to market contraction, but smoke-free product shipments remained flat in Czechia and grew in Slovakia.

• Manufacturing services revenue decreased 3.5% to CZK 2.7 billion due to lower volumes.

Outlook and guidance

• 2025 outlook is optimistic to neutral in Czechia, more cautious in Slovakia due to fiscal consolidation and consumer pressure.

• Inflation is expected to decline toward 2% in Czechia, with GDP growth projected at 2.3%.

• The company will continue investing in productivity and sustainability initiatives, including new ZYN production lines.