Executive Summary
Philip Morris International (PMI) delivered a solid start to QQ1 2025 with revenue of $9.249 billion and strong gross and operating margins that underscore the durability of PMI’s high-margin, low-need-for-capex model in a mature tobacco market. The quarter showed a robust gross margin of 64.5% and an operating margin of 40.8%, supported by an EBIT of $3.775 billion and EBITDA of $4.012 billion. Net income reached $2.682 billion, translating to $1.72 per diluted share. On a YoY basis, margins improved (gross margin +6.6% YoY; operating margin +23.97% YoY; net income +24.9% YoY; EPS +24.6% YoY), while QoQ results reflect seasonality and a substantial working-capital swing that pressured cash flow from operations.
Key Performance Indicators
QoQ: 563.21% | YoY:24.86%
QoQ: 564.86% | YoY:24.64%
Key Insights
Revenue: 9.249B, YoY +5.19%, QoQ -4.71%; Gross Profit: 5.968B, Gross Margin 64.5%, YoY +6.61%, QoQ -5.01%; Operating Income: 3.775B, Operating Margin 40.8%, YoY +23.97%, QoQ +15.83%; Net Income: 2.682B, Net Margin ~29.0%, YoY +24.86%, QoQ +563.21%; EPS (diluted): 1.72, YoY +24.64%, QoQ +564.86%; EBITDA: 4.012B, EBITDA Margin ~40.3% (EBITDA/Revenue); Net debt: 45.103B; Debt: 49.579B; Cash: 4.476B; Free Cash Flow (FCF): -0.754B; Operating Cash Flow (OCF): -3.50B; Capex: -0.404B; Dividend paid: -2....
Financial Highlights
Revenue: 9.249B, YoY +5.19%, QoQ -4.71%; Gross Profit: 5.968B, Gross Margin 64.5%, YoY +6.61%, QoQ -5.01%; Operating Income: 3.775B, Operating Margin 40.8%, YoY +23.97%, QoQ +15.83%; Net Income: 2.682B, Net Margin ~29.0%, YoY +24.86%, QoQ +563.21%; EPS (diluted): 1.72, YoY +24.64%, QoQ +564.86%; EBITDA: 4.012B, EBITDA Margin ~40.3% (EBITDA/Revenue); Net debt: 45.103B; Debt: 49.579B; Cash: 4.476B; Free Cash Flow (FCF): -0.754B; Operating Cash Flow (OCF): -3.50B; Capex: -0.404B; Dividend paid: -2.116B; Current ratio: 0.79; Quick ratio: 0.43; Cash ratio: 0.159; Total assets: 65.079B; Total liabilities: 74.005B; Shareholders’ equity: -10.901B (negative equity). Payout ratio: 0.789; Price metrics (as of QQ1 2025 data): P/E ~22.99x; P/S ~26.67x; P/BV negative due to negative equity; Dividend yield ~0.86%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.25B |
5.19% |
-4.71% |
| Gross Profit |
5.97B |
6.61% |
-5.01% |
| Operating Income |
3.78B |
23.97% |
15.83% |
| Net Income |
2.68B |
24.86% |
563.21% |
| EPS |
1.72 |
24.64% |
564.86% |
Key Financial Ratios
operatingProfitMargin
40.8%
operatingCashFlowPerShare
$-0.23
freeCashFlowPerShare
$-0.49
dividendPayoutRatio
78.9%
Management Commentary
Transcript data not provided in the input. No earnings-call quotes available to source management remarks or thematic quotes for inclusion.
Forward Guidance
No explicit forward-looking targets or guidance were included in the provided data. Historically, PMI emphasizes growth in its smokefree portfolio outside the United States (HEETS and Marlboro-branded smokefree products), pricing/mix discipline, and cost efficiency as levers for future performance. Given the QQ1 2025 results, key factors to monitor include: (1) execution of the smokefree strategy and geographic mix shifts, (2) working-capital management and its impact on cash flow, (3) currency headwinds and regulatory developments affecting pricing and demand, and (4) the durability of margins amid ongoing macro volatility. Investors should watch PMI’s ability to convert earnings strength into sustainable FCF given the current negative OCF and net debt trajectory.