At 203.4 billion, Philip Morris International's reported cigarette volume shipments for the first quarter of 2009 were unchanged from those of the first quarter of 2008.
Excluding the effect of acquisitions, shipment volumes were down by 1.1 per cent, though including into the equation also the effect of 2008's being a leap year, even organic volumes were essentially flat.
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In its Latin America and Canada region, shipments rose by 4.4 per cent to 23.989 billion, largely due to the acquisition of Rothmans Inc in Canada; while in its Asia region, shipments increased by 2.2 per cent to 56.768 billion driven by gains in Indonesia and South Korea.
Volume shipments in PMI's Eastern Europe, Middle East and Africa (EEMA) region, at 67.678 billion, were down by 0.3 per cent; while EU shipments decreased by 3.7 per cent to 54.940 billion, with relatively big falls in Italy and Poland.
Despite strong growth by Marlboro in Asia, total cigarette shipments of Marlboro, amounting to 71.1 billion, were down by 2.4 per cent, primarily due to market declines in the EU and the EEMA, an 0.4 market share point erosion in the EU, and a reduction in PMI duty-free volumes, reflecting the unfavorable impact of the global economy on travel and the softening of the premium segment in Russia.
Shipments of L&M, at 21.5 billion, were down by 0.5 per cent, with slight growth in Asia offset by a decline in other regions; while shipments of Chesterfield grew by 0.4 per cent driven by an increase in the EU.
Shipments of Parliament grew by 5.9 per cent, driven by gains in the EEMA and Asia; while shipments of Virginia Slims declined by 3.2 per cent.
Total shipment volumes of other tobacco products (OTP), in cigarette equivalent units, increased by 39.4 per cent, fuelled by strong growth in France and Poland. Excluding acquisitions, shipments of OTP were up by 12.9 per cent.
Overall, shipment volumes, including cigarettes and OTP, were up by 0.5 per cent, but down by 0.9 per cent excluding acquisitions.
Meanwhile, PMI yesterday announced diluted earnings per share of $0.74 for the first quarter of 2009, down by 6.3 per cent from $0.79. Excluding currency effects, reported diluted earnings per share were up by 12.7 per cent. Adjusted diluted earnings per share were $0.74, down by 7.5 per cent, while, excluding currency effects, adjusted diluted earnings per share were up by 11.3 per cent.
Net revenues of $5.6 billion were down by 5.5 per cent due to unfavorable currency effects of $697 million. Excluding currency effects, net revenues increased by 6.3 per cent. Excluding the effects of currency and acquisitions, net revenues increased by 3.9 per cent.
Reported operating companies' income declined by 7.0 per cent to $2.4 billion due to unfavorable currency effects of $401 million. Excluding the effects of currency and acquisitions, operating companies' income was up by 6.2 per cent.
"Our quarterly results met our expectations and demonstrate that our performance on a constant currency basis remains robust, with net revenues, operating companies income and earnings per share up 6.3 per cent, 8.8 per cent and 12.7 per cent respectively," said Louis Camilleri, chairman and CEO in announcing the results.
"While the economic crisis naturally causes continued uncertainty, these results, combined with the geographic expansion of the new Marlboro architecture, support our confidence in our ability to meet our constant currency growth targets in 2009 and beyond." Enditem
