Philip Morris International

Performance indicator

2022: Net profit growth in Russia and Ukraine

Tobacco company Philip Morris International in 2022 recorded a profit of $0.64 per security from operations in Russia and Ukraine. For comparison, a year earlier this figure was $0.6 per share. Such data are provided in the financial report published on February 9, 2023.

Philip Morris's net profit in 2022 reached $9.04 billion against $9.11 billion in profit a year earlier. The company's earnings in Russia and Ukraine without recalculation per share are not listed in the statements.

The company's profit in 2022 amounted to $5.98 per security against $6.13 in 2021. If we do not take into account the Russian and Ukrainian markets, then this indicator was at the level of $5.34 per share against $5.53 in 2021.

Philip Morris net profit in Russia and Ukraine increased over the year

Philip Morris revenue in 2022 amounted to $31.76 billion. This is 1.1% more than in the previous year, when sales amounted to approximately $31.41 billion. The report notes that Russia and Ukraine accounted for about 8% of total revenue. If you do not consider these markets, then adjusted revenue increased by 7.7% compared to 2021. Smokeless products brought in 2022 about 32.1% of all revenue, or 31.3% excluding Russia and Ukraine.

As of December 31, 2022, Philip Morris's total assets in Russia amounted to about $2.5 billion, excluding intra-group balances. Of these, approximately $0.6 billion came from cash and its equivalents, stored mainly in Russian rubles. Philip Morris in 2022 recorded expenses related to the current geopolitical situation in the amount of $151 million (including humanitarian activities). This includes losses in Russia due to the cancellation of the previously planned launch of some products.

Philip Morris constantly assesses the developing situation in Russia, including the recent regulatory restrictions on the market, entailing very difficult conditions that must be met for the authorities to approve any transaction to divest investments, and restrictions arising from international regulations, the company said in its financial report.[1]

Business in Russia

Main article: Filip Morris Sales and Marketing, (Philip Morris)

Business in Ukraine

Main article: Filip Morris Ukraine

Smoking and health

Tobacco products, including cigarettes, are harmful to health and addictive. There is a huge amount of medical and scientific evidence showing that smoking causes lung cancer, heart disease, emphysema and other serious diseases.

Dependence

All types of tobacco products are addictive. Quitting smoking can be very difficult, but it shouldn't stop smokers wanting to break up with the habit.

Passive smoking

Health authorities have concluded that secondhand cigarette smoking causes a number of serious diseases in non-smokers, including lung cancer and heart disease. We find the conclusions of the health authorities on passive smoking sufficiently convincing and support restrictions on smoking in public places.

History

Fashionable bag with cowboy Marlboro, USSR, 1980s.

2022: Philip Morris acquires Swedish Match for $16.1 billion

In early May 2022, Philip Morris agreed to purchase for $16.1 billion the manufacturer of snus, chewing tobacco and other non-smoking tobacco products Swedish Match. Read more here.

2021

Purchase of powder developer for the treatment of acute heart attack OtiTopic

In early August 2021, Philip Morris announced the acquisition of OtiTopic, which is developing acetylsalicylic acid (ASA) inhalation agents for the treatment of acute myocardial infarction. OtiTopic's proprietary ASA dry powder called Asprihale is designed for dilution and self-inhalation as an aerosol. Read more here.

Purchase of inhaler manufacturer Vectura for $1.5 billion

In mid-July 2021, Philip Morris acquired Vectura Group, a British asthma drugmaker, for $1.5 billion. Vectura has more than 200 scientists with experience in the development of formulations and inhalation devices, as well as their clinical production. Read more here.

Purchase of nicotine gum maker Fertin Pharma

At the end of June 2021, it became known that Philip Morris acquired the developer and manufacturer of nicotine gum Fertin Pharma. The transaction value, according to a press release, amounted to $813.1 million. Read more here.

Notes