PMI Shipments Unchanged in Second Quarter

Source from:  Tobacco Reporter 07/27/2009

Philip Morris International's cigarette shipments during the second quarter of 2009, at 223.2 billion, were unchanged from those of the second quarter of 2008, though discounting the effects of acquisitions, they were down by 1.1 per cent. There were gains in Asia driven by Indonesia, Korea and Pakistan, and in Latin America & Canada. But these were offset by declines primarily in the EU, particularly in Italy, Poland and Spain, in the EEMA [Eastern Europe, Middle East and Africa], mainly in Romania and Ukraine, and in PMI Duty Free. PMI reported that despite strong growth in Asia, total cigarette shipments of Marlboro, at 78.3 billion, were down by 1.1 per cent, primarily due to market declines in the EU and EEMA, a reduction in PMI Duty Free volume reflecting the unfavorable impact of the global economy on travel and a softening of the premium segment in Russia and Ukraine. Shipments of L&M of 23.2 billion were down by 6.3 per cent with growth in the EU offset by a decline in the other regions. Driven by a decrease in the EEMA, shipments of Chesterfield declined by 9.4 per cent, while shipments of Virginia Slims declined by 7.5 per cent. But shipments of Parliament grew by 1.3 per cent, driven by gains in the EEMA, while shipments of Lark increased by 20.5 per cent, driven by growth in the EEMA and Asia. Shipment volumes of other tobacco products (OTP), in cigarette equivalent units, grew by 21.6 per cent, primarily driven by strong growth in France and the Nordic countries. But excluding acquisitions, shipments of OTP were down by 12.2 per cent, primarily due to lower cigarillo volumes in Germany where this entire segment declined. Shipment volume for cigarettes and OTP was up by 0.3 per cent but down by 1.3 per cent excluding acquisitions. PMI's second-quarter net revenue was down by 8.6 per cent to $6,134 million while reported operating income fell by 6.0 per cent to $2,488 million. Enditem