Philip Morris Q1 2021 Results Quick Read (Substack Exclusive)

Flash Note (PM US) (Buy)

Philip Morris (PM) published its Q1 2021 results this morning. Highlights below:

Strong Headline P&L

Q1 headline numbers were solid. Organically, Net Revenues grew 2.9%, adjusted EBIT grew 18.5% (with margin rising 5.9 ppt to 46.0%), and adjusted EPS grew 21.5%:

Currency was a tailwind, adding more than 3 ppt to revenue growth and nearly 7 ppt to adjusted EBIT growth, with adjusted EPS growing 29.8% including currency.

The solid Q1 2021 followed a strong prior-year quarter when revenues grew 10.0% and adjusted EBIT grew 25.5% on a like-for-like basis, with shipment volumes helped by distributors raising their inventory levels in the early weeks of COVID-19: