Philip Morris 1Q Profit Rises, Sees Pandemic Weighing on Full Year

By Dave Sebastian

Philip Morris International Inc. said its profit and sales rose for the latest quarter, but it withdrew its guidance for 2020 as it faces the effect of the Covid-19 pandemic.

The tobacco company on Tuesday posted earnings of $1.83 billion, or $1.17 a share, up from $1.35 billion, or 87 cents a share, in the comparable quarter last year.

Adjusted earnings were $1.21 a share, ahead of the $1.13 a share analysts had expected.

Sales rose 6%, to $7.15 billion. Analysts were looking for $6.84 billion.

The pandemic in its early stages had limited effect on the company, but it would hurt the company's full-year results, Chief Executive André Calantzopoulos said.

Mr. Calantzopoulos said the pandemic has caused reduced duty-free sales, slower user acquisition for IQOS--which is developed by Philip Morris and sold by Altria Group Inc.--and delayed minimum-price enforcement in Indonesia.

"We also have to assume that, in certain markets, unemployment and related reductions in disposable income will have a temporary impact on market dynamics or the ability of certain small retailers to operate," he said.

Shipment volume of cigarettes and heated tobacco units fell 1.2%. Market share of heated tobacco units for IQOS rose 1.9 points to 6.6% outside the U.S.

British American Tobacco PLC earlier this month sued Philip Morris and Altria Group Inc., alleging that IQOS infringes on the company's U.S. patents.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

April 21, 2020 07:41 ET (11:41 GMT)

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