Philip Morris International : Presentation (f40672)

Published: 2026-04-24 09:18:15 ET PM

Published on 04/24/2026 at 09:18 am EDT

Championing a Smoke-Free World

2026 First-Quarter Results

April 22, 2026

Introduction

A glossary of terms as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures for non-GAAP financial measures cited in this presentation are available in Exhibit 99.2 to the company's Form 8-K dated April 22, 2026 and on our Investor Relations website with additional non-GAAP reconciliations available at the end of this presentation

Forward-Looking and Cautionary Statements

This presentation contains projections of future results and goals and other forward-looking statements, including statements regarding expected financial or operational performance; capital allocation plans; investment strategies; regulatory outcomes; market expectations; business plans and strategies. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI

PMI's business risks include: marketing and regulatory restrictions that could reduce our competitiveness, disrupt our SFP commercialization efforts, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; excise tax increases and discriminatory tax structures; health concerns relating to the use of tobacco and other nicotine-containing products; litigation related to tobacco and/or nicotine products and intellectual property rights; intense competition; inability to anticipate changes in adult consumer preferences; use and reliance on third-parties; the adverse effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; geopolitical instability affecting international trade; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; continued decline of tax-paid cigarettes; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, sustained periods of elevated inflation, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; disruptions in the credit markets or changes to its credit ratings; recent and potential future tariffs imposed by the U.S. and other countries; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as product components for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful, in key markets or systemically, in its efforts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity; if there are prolonged disruptions of facilities used to produce its products; if it is unable to enter new markets or improve its margins through increased prices and productivity gains; if other market participants are more successful in their SFP commercialization efforts; if it is unable to attract and retain the best global talent; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products performance

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2025 and the Form 10-Q for the quarter ended March 31, 2026, which will be filed in the coming days. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations

References to "PMI", "we", "our" and "us" mean Philip Morris International Inc., including its subsidiaries

Strong Growth Fundamentals, Excellent EPS Delivery

Q1 delivery ahead of our expectations with $1.96 adj. diluted EPS, +16% vs. PY

Excellent International SFP growth:

Strong IQOS progress with ~11% adjusted IMS volume growth, multicategory accretion from ZYN

& VEEV

29% gross profit growth, 19% excl. currency

Very resilient combustibles top-line and gross profit growth vs. high comparison

U.S. ZYN offtake growth of 10%; as expected a challenging financial quarter for U.S. segment on tough comparison and inventory normalization

On track for another year of best-in-class top and bottom-line growth

Source: PMI financials or estimates

Variance

Organic

Shipment Volume

184bn

(1.9)%

Net Revenues

$10.1bn

+9.1%

+2.7%

Adj. Gross Profit

$6.9bn

+10.1%

+3.8%

Note: Organic gross margin growth is calculated from adjusted gross profit divided by adjusted net revenues. All organic metrics reflect currency-neutral adjusted results. Chart not to scale. Source: PMI financials or estimates

+190bps to

67.5%

Gross Margin

+210bps to

70.0%

Gross Margin

+10.1% OCI

+15.7% USD

+210bps to

68.5%

Gross Margin

3.9%

19.4%

Gross Profit

9.7%

Gross Profit

1.0%

15.8%

Net Revenues

6.4%

Net Revenues

Int'l Combustibles

Int'l Smoke-Free

Total International

Remarkable International Performance Powered by SFPs

Q1'26 Organic Growth vs. PY

Q1: Very Robust Delivery Despite Timing Headwinds

Q1'26

Q1'26 vs. PY

Adj. Operating Income

Adj. Diluted EPS

Note: Organic growth rates reflect currency-neutral adj. results. Shipment volume includes cigarettes and SFPs. Source: PMI financials or estimates

$4.2bn

+10.0%

+0.9%

$1.96

+16.0%

+5.3%

High-SD

Cigarettes

145

137

(5.1)%

~(3)%

Q1'25

Q1'26

(a) Including HTU adjusted IMS, Oral SFP and E-Vapor reported IMS. Note: Chart not to scale. Total may not foot due to rounding. Source: PMI financials or estimates

SFP IMS(a)

+11%

Q1'26 vs. PY

+9.1%

HTUs: +11%

Oral SFPs: (16)%

E-Vapor: +95%

SFP

FY Forecast

vs. PY

(1.9)%

184

188

Excellent SFP Volume Growth Driven by IQOS

(shipments, equivalent bn units)

(a) Smoke-free mix represents the impact of the changing proportion of smoke-free products at higher net-revenue per unit. Note: Total may not foot due to rounding. Source: PMI financials or estimates

Q1'26 Net

Revenue Growth

Q1'26 Organic Net Revenue Growth

Q1'26 Shipment Volume

& Other

+5.0pp

(1.9)%

2.7%

(1.3)pp

Int'l CC Geo Mix

(1.8)pp

U.S.

+2.7pp

International

+6.4pp

Pricing (CC &

Smoke-Free)

Smoke-Free Mix(a)

9.1%

Currency

Sustainable Top-Line Growth Drivers

(a) Includes Corporate Expenses and Other (+0.1pp). Source: PMI financials or estimates

Q1'26

(excl. currency)

Q1'25

+40bps

(70)bps

+1.1pp

Currency

SG&A(a)

40.0%

(1.4)pp

41.1%

+0.7pp

Gross Profit

40.7%

Q1'26 Adjusted OI Margin

Resilient Margin Performance Underscores Strong Model

1 PMI SFP

Categories

PMI SFP IMS

Q1'26 Growth(a)

~11%

~3pp > Industry(b)

108

PMI SFP Markets

(#)

106

Outpacing the Industry on SFP Growth, Expansion Continues

Source: PMI financials or estimates

Third party store

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

9.4%

Excl. Japan consumer pantry loading

9.0%

Taiwan

10.9%

9.6%

12.0%

11.4%

IQOS

Markets

HTU Adj. IMS Growth

(change vs. PY)

IQOS: Continuing to Deliver Strong Progress

(a) Base includes HTUs and cigarettes. (b) Based on Greater Taipei. (c) Global Travel Retail includes airports where IQOS is available, offtake share based on Dec-Feb'26 vs. Dec-Feb'25. Source: PMI financials or estimates

Athens Tokyo

Munich Belgrade GTR Prague Bucharest Rome

(Airports)(c)

Seoul

Madrid London Kuala

Lumpur

Cairo

Mexico City

Manila Tunis Riyadh Taipei(b) Urban

Jakarta

2.9%

9.5%

7.5%

7.2% 7.3%

6.2%

6.0%

10.6%

16.3%

13.5% 13.8% 14.3%

23.3% 23.9%

19.7% 20.8%

+0.3 +2.1 +1.6 +7.2 +1.6 +1.8 +0.6 +1.0 +3.0 +0.8 +0.2 +2.7 +2.8 +2.7 (0.2) +3.7 +2.9 +3.3 +2.5

37.7% 40.3%

33.9%

Change vs. PY, pp

Excellent IQOS Progress Across Key Global Cities

PMI HTU Offtake Shares (Q1'26)(a)

(a) Based on closed pods Nielsen offtake data in 19 markets (incl. UK, France, Spain, Germany, Poland, Italy) representing more than 90% of VEEV Volumes in Europe. (b) Q1'25 (0.4bn) includes only nicotine pouch shipments, Q1'26 (0.5bn) all modern oral products. +7% and +42% represents like-for-like modern oral variance. Note: ZYN includes marginal volume from other brands. See glossary for equivalent unit conversion. Source: PMI financials or estimates

Q1'26

Q1'25

Q4'25

Q3'25

Q2'25

Q1'25

+7%

vs. PY

18.4%

Comp. 2

VEEV

+42%

Excl. Nordics

0.4

Joint #1 Brand in Europe

(Q4'25, Closed Pods)(a)

Closed Pods Share in Europe(a)

Comp. 1

22.4%

21.2%

0.5

Q1'26

Q1'25

+95%

vs. PY

0.6

1.2

Int'l Modern Oral Shipments(b)

(billion pouches)

E-Vapor Shipments

(billion equivalent units)

Multicategory Portfolio Supporting Rapid Growth

(a) Markets where characterizing flavor ban was made effective at consumer level since Jan'25, such as Hungary and Poland. (b) Q1'25 (0.3bn) includes only nicotine pouch shipments, Q1'26 (0.3bn) all modern oral products. (8)% and +31% represent like-for-like modern oral variance. Note: ZYN includes marginal volume from other brands. Chart not to scale. Source: PMI financials or estimates

Q1'26

FY'25

FY'24

Q1'25 Q1'26

+31%

Excl. Nordics

(billion pouches)(b)

0.3 0.3

(8)%

vs. PY

5.4%

Q1'26

0.5

Q1'25

8.6%

(billion eq. units)

+107%

1.1 vs. PY

~8%

Excl. recent flavor ban markets(a)

9.3%

Shipment Volumes

+12%

Q1'26 vs. PY

Adj. IMS Growth vs. PY

IQOS, ZYN & VEEV

Shipment Growth

Europe: Continued Strong SFP Growth

H2'25

Q1'26

Comp. 1

Comp. 2

15%

17%

18%

14%

H1'25

H2'25

12%

Q1'26

(a) Based on Top 3 C-Store Chains offtake, Q1'26. Base includes cigarettes, cigarillos and HTUs. Source: PMI financials or estimates

H1'25

5.9%

Excl. consumer pantry loading

5.8%

69%

PMI

8.4%

69%

70%

10.4%

~53%

HnB Offtake

HnB Adj. Category Share Category Share(a)

(%)

Q1'26

PMI HTU Adj. Share

34.9%

+2.7pp vs. PY

Adj. IMS Growth vs. PY

Japan: IQOS Achieves Record Share, Strong Fundamentals

ZYN Leading U.S. Nicotine Pouch Category Despite Headwinds

Q1'26(a)

U.S. ZYN Volumes

(million cans)

Volume Share (cans):

55.5%

Retail Value Share:

61.3%

Solid growth in offtake volumes despite uneven competitive landscape

+10%

ZYN Q1'26

Offtake vs. PY(a)

~160

~175

Shipment growth in line with offtake growth, excl. inventory movements:

- Channel inventory now broadly normalized

Preparing to launch innovations

Underlying volumes(b)

Q1'25

Q1'26

(a) Based on Nielsen. (b) Estimated proxy of shipments related to consumer offtake, adjusting for wholesaler and distributor inventory fluctuations. First provided at FY25 earnings, 6 Feb 2026. Estimates by quarter for 2025: Q2'25: 180m, Q3'25: 205m, Q4'25: 200m. Note: U.S. ZYN cans contain 15 pouches. Source: PMI financials or estimates

Shipments 202 155

ZYN: Investing in the Brand, Navigating Regulatory Constraints

Investing in brand equity

Comprehensive commercial program

Ongoing FDA review of ZYN ULTRA application, full innovation pipeline

Significant growth potential from leading premium brand

(a) Pricing variance is based on adjusted net revenues. Source: PMI financials or estimates

Q1'26

Q4'25

Q3'25

Q2'25

Q1'25

Q1'26

FY'25

FY'24

FY'23

3.9

3.2

5.3

5.1

6.1

8.5

7.6

8.7

8.9

Int'l Combustible Gross Profit

(% organic growth vs. PY)

10.7%

Q1'26

Combustible Pricing

(% growth vs. PY)(a)

Combustibles: Resilient Growth & Strong Pricing

Record Q1 Marlboro Int'l

2026 Outlook

Net Revenues(a)

5-7%

Operating Income(a)

7-9%

Adj. Dil. EPS(b)

7.5-9.5%

Adj. Dil. EPS, USD(c)

10.9-12.9%

Operating Cashflow(d)

~13.5bn

Full Report Available Here

Nature

Climate

Workers in Value Chain

PMI

Workforce

Circularity

Consumers

Completion of 2025 Roadmap

Introduction of Value Plan 2030+

Sustainable Value Creation: PMI Value Report 2025

2026: Another Year of Strong Profitable Growth Expected

Unchanged currency-neutral growth outlook: best-in-class growth despite transitory headwinds

Adjusted diluted EPS forecast of $8.36 -

$8.51 incl. favorable currency impact of 25 cents(c)

- Includes Q2 forecast of $2.02 - $2.07 with 2 cents of favorable currency(c)

Strong operating cash flow generation

(a) On an organic basis. (b) Currency neutral variance. (c) At prevailing rates. (d) At prevailing rates, subject to year-end working capital requirements. Source: PMI financials or estimates

Delivering Superior & Sustainable Growth

Q1 performance underscores strength and momentum of global smoke-free business

Supported by investment in our premium brands and the continued resilience of combustibles

Consistent, best-in-class growth

Committed to generously rewarding shareholders

Looking to full-year and beyond with confidence

Source: PMI financials or estimates

Championing a Smoke-Free World

2026 First-Quarter Results

Questions & Answers

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Championing a Smoke-Free World

2026 First-Quarter Results

April 22, 2026

Appendix and Reconciliation of Non-GAAP Measures

($/share)

Full-Year

2026

Forecast

2025

Growth

Reported Diluted EPS

$7.56 - $7.71

$7.26

Adjustments:

- Amortization of intangibles

0.50

- Fair value adjustment for equity security investments

0.22

(0.18)

- Restructuring charges

0.03

0.14

- Income tax impact associated with Swedish Match AB financing

0.05

(0.25)

- Other 2025 adjustments(a)

0.07

- Total Adjustments

0.80

0.28

Adjusted Diluted EPS $8.36 - $8.51 $7.54

10.9% - 12.9%

2026

2025

% Change

2026

2025 pp Change

2026

2025 pp Change

2026

2025

pp Change

Indonesia

63.8

61.6

3.5

29.1

30.8

(1.7)

0.7

0.5

0.2

0.6

0.4

0.2

Italy

18.1

17.8

1.2

50.7

51.1

(0.4)

20.2

18.2

2.0

19.3

17.5

1.8

Poland

11.3

13.1

(13.9)

45.1

41.7

3.4

10.9

10.0

0.9

10.0

9.2

0.8

Spain

9.7

9.9

(2.4)

28.2

4.0

3.4

0.6

3.7

3.3

0.4

Romania

6.2

6.9

(10.5)

24.7

21.4

3.3

14.7

10.4

4.3

11.5

9.5

2.0

Bulgaria

4.9

4.7

2.5

26.8

24.8

2.0

13.8

11.6

2.2

13.1

11.5

1.6

United Kingdom

4.5

5.8

(22.3)

12.0

9.3

2.7

5.4

3.6

1.8

4.1

3.0

1.1

Greece

3.8

3.6

6.3

49.2

47.1

2.1

30.0

26.1

3.9

27.0

25.0

2.0

Portugal

2.8

0.7

60.0

58.3

1.7

24.4

22.5

1.9

23.0

21.7

1.3

Switzerland

2.3

(1.7)

39.3

39.7

(0.4)

13.9

13.0

0.9

13.3

12.6

0.7

2026: EPS Guidance

- Less: Currency

0.25

(a) Includes: $0.10 Germany excise tax classification litigation charge; ($0.10) RBH (Canada) Plan Implementation, including dividend income, net; $0.09 Impairment of Wellness business related equity investment; $0.06 Loss on expected sale of consumer accessories and other businesses; $0.03 Impairment of goodwill and other intangibles; ($0.11) Tax items.

Source: PMI financials or estimates.

Adjusted Diluted EPS, excluding currency $8.11 - $8.26 $7.54

7.5% - 9.5%

Additional Market Data: Total Market and Market Share

Q1'26 vs. Q1'25

Select Multicategory Markets (PMI present in 3 SFP categories)

Total Market,

Market

bio units(a)(b)

Total

PMI Market Share, %(a)(b)

Smoke Free Products

HTU

(a) Total market and PMI market share include cigarettes, HTUs, e-vapor (excl. open tank) and oral smokeless categories. (b) Total market and PMI IMS for Cigarettes and HTU is adjusted for the estimated impact of distributor and trade inventory movements; e-vapor and oral smokeless reflect reported total market and PMI IMS. Note: % change for Total Market and PMI shipments is computed based on millions of units. "-" indicates volume below 50 million units and market share below 0.1%. 26 Source: PMI financials or estimates

2026

2025

% Change

2026

2025 pp Change

2026

2025 pp Change

Russia

47.1

48.7

(3.2)

32.0

32.8

(0.8)

11.1

9.8

1.3

Turkey

36.7

35.0

4.8

48.0

49.8

(1.8)

Japan

36.6

35.8

2.2

45.0

43.2

1.8

34.9

32.2

2.7

Egypt

19.6

19.9

(1.9)

36.0

29.1

6.9

2.0

1.8

0.2

Brazil

18.7

20.4

(8.5)

23.5

21.9

1.6

South Korea

15.8

16.1

(1.8)

20.4

20.2

0.2

10.0

9.2

0.8

Germany

15.2

15.7

(3.1)

38.7

38.4

0.3

8.4

7.7

0.7

Philippines

11.8

11.2

4.6

47.1

47.9

(0.8)

1.2

0.8

0.4

Argentina

6.6

6.8

(3.7)

63.3

Taiwan

6.3

6.4

(2.0)

11.2

6.6

4.6

5.2

Mexico

5.9

6.9

(13.9)

57.6

58.0

(0.4)

1.3

0.7

0.6

Total PMI

First-Quarter

2026

22.6%

2025

23.4%

Change (pp)

(0.8)

Cigarettes

HTU

6.8%

5.8%

1.0

Total International Market Share (a)

29.4%

29.2%

0.2

Cigarette over Cigarette Market Share (b)

24.8%

25.4%

(0.6)

Additional Market Data: Total Market and Market Share

Q1'26 vs. Q1'25

Select Markets - Cigarettes & HTU

Total Market CC & HTU,

PMI Market Share, %(a)

Market

bio units(a)

Total

HTU

(a) Total market and market share estimates include cigarillos in Japan. Total market and PMI IMS for Cigarettes and HTU is adjusted for the estimated impact of distributor and trade inventory movements. Note: % change for Total Market and PMI 27

shipments is computed based on millions of units. "-" indicates volume below 50 million units and market share below 0.1%. Source: PMI financials or estimates

International Market Share

(a) Defined as PMI's cigarette and heated tobacco unit in-market sales volume as a percentage of total industry cigarette and heated tobacco unit sales volume, excluding China and the U.S., including cigarillos in Japan. (b) Defined as PMI's cigarette

in-market sales volume as a percentage of total industry cigarette sales volume, excluding China and the U.S., including cigarillos in Japan. Note: Sum of share of market by product categories might not foot to total due to rounding. 28

Source: PMI financials or estimates

March 31,

$ 6,905

$ (6)

$ 6,911

$ 397

$ 6,514

Total PMI

$ 6,270

$ (5)

$ 6,275

10.1%

3.8%

3,021

(6)

3,027

191

2,835

Smoke-Free

2,724

(5)

2,729

10.9%

3.9%

3,885

205

3,680

Combustible Tobacco

3,547

9.5%

3.7%

Championing a Smoke-Free World

2026 First-Quarter Results

April 22, 2026

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures

Reconciliation of Gross Profit by Product Category to Adjusted Gross Profit by Product Category, excluding Currency

($ in millions) / (Unaudited)

Gross

Profit

Adjusting

Items(a)

Adjusted

Gross Profit

Adjusted Gross

Currency

Profit excluding

Currency

Gross Adjusting

Profit Items(a)

Adjusted

Gross Profit

Excluding

Total Currency

2026

Quarters Ended

2025

% Change

(a) First-quarter 2026 and first-quarter 2025 adjusting items reflect amortization of intangibles in Smoke-free, all amounts are related to cost of goods sold. Note: Sum of product categories and adjusting items might not foot to Total PMI due to roundings. Source: PMI financials or estimates

Disclaimer

Philip Morris International Inc. published this content on April 24, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2026 at 13:17 UTC.