Company Research Report: Philip Morris International Inc.

Company Overview

• Company Name: Philip Morris International Inc. (PMI)

• Mission: Transforming to replace cigarettes with smoke-free products for the benefit of adult smokers, shareholders, and society.

• Founded: No information is available.

• Founders: No information is available.

• Key People:

• Jacek Olczak, CEO

• Stefano Volpetti, President of Smoke-Free Inhaled Products & Chief Consumer Officer

• Bin Li, Chief Product Officer

• Moira Gilchrist, Chief Communications Officer

• Headquarters: Stamford, Connecticut, USA

• Number of Employees: Approximately 82,700

• Revenue: USD 35.1 billion in net revenue as of December 31, 2023

• Known For: PMI is known for being one of the world’s leading tobacco companies focusing on replacing cigarettes with smoke-free alternatives.

Products

• Product Portfolio: PMI offers cigarettes and smoke-free products, including heated tobacco, e-vapor, and smokeless oral products.

• High-Level Description of the Products:

• IQOS (Heated Tobacco Products): Best known for its flagship smoke-free product IQOS, PMI markets it under brand names like TEREA and HEETS. It releases nicotine and flavors by heating tobacco rather than burning it, significantly reducing harmful chemicals and substances typically found in cigarette smoke.

• ZYN (Nicotine Pouches): An oral smokeless product positioning as a better alternative for adult smokers seeking a smoke-free option.

• Key Features:

• IQOS devices are backed by years of scientific research and designed to provide a less harmful alternative by eliminating tobacco combustion.

• Offer a more diverse range of consumption methods for smokers looking to transition away from conventional smoking across 92 markets globally.

Recent Developments

• Smoke-Free Future Ambition: PMI has set an ambitious target to generate more than two-thirds of its net revenue from smoke-free products by 2030, progressing from 38% as of Q3 2024.

• Investment in Smoke-Free Technology: Over USD 12.5 billion has been invested since 2008 in the development and commercialization of scientifically substantiated smoke-free products.

• Market Expansion and Performance:

• As of September 30, 2024, PMI reports that smoke-free products, including IQOS, are available in 92 markets worldwide.

• PMI estimates that 36.5 million adults have already adopted PMI's smoke-free products.

• Regulatory Success: Swedish Match, an affiliate of PMI, received renewed FDA authorization for 8 General snus products as Modified Risk Tobacco Products.

• Key Milestones:

• PMI marked the 10th anniversary of the IQOS launch, with significant declines in nationwide cigarette smoking prevalence in major markets like Japan.

Additional Highlights

• Sustainability and Recognition:

• PMI has received a ‘triple-A’ rating for sustainability leadership for the fourth consecutive year from CDP.

• The company has been included in the Dow Jones Sustainability World Index for the first time, showing improvements in sustainability performance and aligning with ambitious economic, environmental, and social criteria.

This detailed report encapsulates the significant strategic pivots made by Philip Morris International towards a no-cigarette future by expanding and marketing smoke-free alternatives. The continued investment in science and regulatory achievements highlight PMI's commitment to reducing harm and providing better choices for adults who continue to smoke cigarettes.