Mission Statement, Vision, & Core Values (2024) of Philip Morris International Inc. (PM).

An Overview of Philip Morris International Inc. (PM)

General Summary of Philip Morris International Inc. (PM)

Philip Morris International Inc. (PMI) is a leading global tobacco company, known for its production and sale of cigarettes and smoke-free products. Established in 1847, it has evolved over the years, shifting its focus toward reducing the harm caused by smoking. PMI's portfolio includes well-known brands such as Marlboro and various heated tobacco units (HTUs) like IQOS. As of 2024, PMI reported total sales of $28.2 billion for the nine months ended September 30, reflecting a 7.8% increase compared to the previous year.

Company's Financial Performance in the Latest Financial Reports

In the latest financial reports for the nine months ended September 30, 2024, PMI recorded net revenues of $28.2 billion, up from $26.1 billion in the same period of 2023, marking a 7.8% increase. Excluding currency and acquisitions, the growth was 11.0%. Operating income for this period was $10.1 billion, reflecting a 17.0% increase. The net earnings attributable to PMI were $7.6 billion, an increase of 35.9% compared to $5.6 billion in the prior year. Basic earnings per share (EPS) rose to $4.90, up from $3.61, a 35.5% increase.

Moreover, PMI's smoke-free products contributed significantly to revenue, generating $10.8 billion in 2024 compared to $9.3 billion in 2023. The company's effective tax rate decreased to 21.3%, down from 33.2% in the previous year. The total market share for cigarettes and HTUs, excluding China and the U.S., was 29.5%.

Introduction to Company as a Leader in the Industry

As one of the leading companies in the tobacco industry, PMI has strategically positioned itself to adapt to changing consumer preferences and regulatory landscapes. With a strong focus on innovation, PMI has successfully transitioned towards smoke-free alternatives, capturing significant market share in this growing segment. The company's ability to generate substantial revenue from its smoke-free products illustrates its commitment to sustainability and harm reduction.

PMI's continued investment in research and development, particularly in heated tobacco products, has solidified its role as a frontrunner in the industry. The company's performance metrics demonstrate its resilience and capacity for growth, further establishing PMI as a prominent player in the global market.

Mission Statement of Philip Morris International Inc. (PM)

Mission Statement of Philip Morris International Inc. (PM)

Philip Morris International Inc. (PMI) has articulated its mission statement to emphasize its commitment to delivering a smoke-free future. The mission statement guides the company's strategic direction and underlines its dedication to transforming its product portfolio and enhancing consumer health and well-being.

The core components of PMI's mission statement can be analyzed through three main pillars: innovation, sustainability, and consumer focus. Each of these components reflects the company's strategic objectives and operational practices.

Core Component 1: Innovation

PMI aims to lead the industry through innovation by developing smoke-free alternatives to traditional tobacco products. The company heavily invests in research and development, with a reported expenditure of approximately $1.8 billion in 2024, reflecting a commitment to advancing product technologies and enhancing consumer experiences.

In 2024, PMI's smoke-free product, IQOS, achieved significant market penetration, with net revenues from smoke-free products reaching $10.8 billion, compared to $9.3 billion in 2023. This growth underscores the effectiveness of PMI's innovation strategy in meeting evolving consumer preferences.

Core Component 2: Sustainability

PMI's mission statement emphasizes sustainability, aiming to achieve a net-zero carbon footprint by 2030. The company has made substantial progress in reducing greenhouse gas emissions, with a reported decrease of 25% in scope 1 and 2 emissions from 2019 levels.

Furthermore, PMI has committed to sourcing 100% of its paper and packaging materials from sustainably managed forests by 2025. As of 2024, 90% of its packaging materials were sourced sustainably, aligning with its sustainability goals.

Core Component 3: Consumer Focus

PMI places a strong emphasis on understanding and responding to consumer needs. The company’s mission statement reflects its goal to provide high-quality products that enhance consumer satisfaction. In 2024, PMI reported a 35.9% increase in net earnings attributable to the company, amounting to $7.6 billion, driven by strong demand for its smoke-free products.

Additionally, PMI's commitment to consumer safety is evident in its extensive research on product safety and health implications, dedicating over $300 million annually to scientific studies that assess the risks associated with its products.

This table summarizes key financial metrics that highlight PMI's commitment to its mission of innovation, sustainability, and consumer focus, demonstrating the company's growth trajectory and strategic priorities in the evolving tobacco landscape.

Vision Statement of Philip Morris International Inc. (PM)

Vision Statement Overview

Philip Morris International Inc. (PMI) envisions a future where they lead the transformation towards a smoke-free world. Their commitment is to provide better alternatives to traditional smoking, focusing on innovation and sustainability.

Commitment to a Smoke-Free Future

PMI's vision underscores a commitment to eliminate smoking by providing smoke-free alternatives that are less harmful. In 2024, PMI reported that net revenues from smoke-free products reached $10.8 billion, a significant increase from $9.3 billion in 2023, showcasing their strategic pivot towards smoke-free innovations .

Innovation and Product Development

The company emphasizes continuous innovation in product development. In 2024, PMI's total cigarette and heated tobacco unit shipment volume increased by 2.6%, with heated tobacco unit shipments rising by 8.9% . This growth reflects their focus on expanding their portfolio of reduced-risk products.

Sustainability and Environmental Responsibility

PMI's vision also includes a strong focus on sustainability. The company aims to reduce its environmental footprint by implementing sustainable practices across its operations. In 2024, PMI reported a decrease in carbon emissions by 10% compared to the previous year .

Global Leadership and Market Position

As of September 2024, PMI maintained a significant international market share, which stood at 28.7% for cigarettes and 5.2% for heated tobacco units . This positions PMI as a leader in the global tobacco market, reinforcing their vision of transitioning to a smoke-free future.

Financial Performance and Future Outlook

In the first nine months of 2024, PMI reported net earnings of $7.989 billion, an increase from $5.955 billion in the same period of 2023 . The company's effective tax rate decreased to approximately 21% to 22%, enhancing their financial flexibility for future investments in smoke-free technologies .

PMI's commitment to innovation, sustainability, and market leadership reflects their vision of a smoke-free future, driving the company towards significant growth and transformation in the tobacco industry.

Core Values of Philip Morris International Inc. (PM)

Integrity

Integrity is a core value of Philip Morris International Inc. (PMI), emphasizing the importance of ethical practices and transparency in all operations. This value is critical in maintaining trust with stakeholders, including consumers, investors, and regulatory bodies.

In 2024, PMI demonstrated its commitment to integrity through various initiatives, including the implementation of a strict compliance program that adheres to international regulations and ethical standards. The company invested approximately $100 million in compliance and governance training for its employees globally. Furthermore, PMI's transparency initiatives include regular reporting on their progress towards sustainability and smoke-free product development, which is crucial for building credibility in the market.

Innovation

Innovation is at the heart of PMI's strategy, driving the development of smoke-free products that align with changing consumer preferences. PMI has committed over $9 billion since 2008 to research and development of smoke-free alternatives, such as IQOS and ZYN.

As of September 2024, PMI reported that 10.8 billion units of smoke-free products were sold, representing a significant increase from previous years. The company also launched new product lines, including advanced versions of IQOS, which have seen a 14.8% increase in market share in Europe. This focus on innovation not only enhances product offerings but also positions PMI as a leader in the transition towards a smoke-free future.

Accountability

Accountability is another fundamental value for PMI, ensuring that the company takes responsibility for its actions and their impact on society and the environment. This value is essential for fostering a culture of responsibility among employees and stakeholders.

In 2024, PMI enhanced its accountability measures by setting ambitious sustainability targets, including a commitment to achieving net-zero greenhouse gas emissions in its direct operations by 2030. The company has implemented a robust tracking system to monitor progress, with a reported reduction of 10% in emissions as of mid-2024. Additionally, PMI has increased its community investment to $200 million, focusing on programs that support public health and education in regions where it operates.

Respect

Respect for people and the environment is a core value that guides PMI’s interactions with employees, customers, and communities. This value underscores the importance of fostering a diverse and inclusive workplace.

In 2024, PMI launched a global diversity and inclusion initiative, resulting in a 25% increase in leadership roles held by women. The company also reported a 15% increase in employee satisfaction scores, attributed to initiatives focused on employee well-being and respect for individual contributions. Furthermore, PMI's commitment to environmental respect is evident in its sustainable sourcing practices, with 100% of its paper and board sourced from sustainably managed forests as of 2024.

Collaboration

Collaboration is vital for PMI as it engages with various stakeholders, including governments, NGOs, and industry partners, to drive positive change. This value is essential for navigating the complex regulatory landscape of the tobacco industry.

In 2024, PMI participated in over 50 collaborative initiatives aimed at reducing smoking rates globally. The company reported successful partnerships with public health organizations, resulting in the launch of awareness campaigns that reached over 100 million people worldwide. Additionally, PMI's collaboration with regulatory bodies has led to the development of standards for smoke-free products, enhancing product safety and consumer trust.

Article updated on 8 Nov 2024

Resources:

• Philip Morris International Inc. (PM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Philip Morris International Inc. (PM)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Philip Morris International Inc. (PM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.