Analysis of Revenues
Revenues as Reported
Philip Morris International Inc., income statement, revenues
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The annual revenue data reveals several notable trends across different product categories over the five-year period.
- Combustible tobacco products
- This segment exhibited a generally stable revenue trend with slight fluctuations. The revenue started at $21,747 million in 2020, experienced a moderate increase to $22,067 million in 2021, then slightly decreased to $21,572 million in 2022. From 2022 onwards, it demonstrated a gradual recovery, rising to $22,334 million in 2023 and reaching $23,218 million in 2024. Overall, the combustible tobacco segment shows resilience with moderate growth observed particularly in the most recent years.
- Smoke-free products excluding Wellness and Healthcare
- This category displayed strong and consistent growth throughout the period. Starting at $6,947 million in 2020, revenues increased significantly each year, reaching $9,237 million in 2021, $9,919 million in 2022, $12,534 million in 2023, and $14,327 million in 2024. The increasing trend is indicative of expanding market demand and successful penetration of smoke-free alternatives.
- Wellness and Healthcare
- Revenues in this newly introduced category commenced in 2021 with $101 million and expanded steadily through 2024, reaching $333 million. Although the absolute values are relatively small compared to other segments, the consistent year-over-year growth suggests a growing focus and emerging business potential within this area.
- Smoke-free products (total)
- Combining the subcategories of smoke-free products excluding Wellness and Healthcare with Wellness and Healthcare, this segment experienced robust growth. Revenues increased from $6,947 million in 2020 to $9,338 million in 2021, then to $10,190 million in 2022, $12,840 million in 2023, and finally $14,660 million in 2024. This upward trajectory highlights the shifting consumer preference towards smoke-free alternatives and diversification of the product portfolio.
- Net revenues
- Total net revenues trended upward steadily over the years. From $28,694 million in 2020, the revenues increased to $31,405 million in 2021 and gradually climbed to $31,762 million in 2022. The growth accelerated in 2023, reaching $35,174 million, and furthered to $37,878 million in 2024. This upward movement reflects the combined effect of stable sales in combustible tobacco products and the strong growth in smoke-free and wellness categories.
In summary, the revenue data illustrates a stable core business in combustible tobacco products complemented by rapid expansion in smoke-free offerings and an emerging wellness segment. The overall growth in net revenues underscores successful strategic diversification and adaptation to evolving market trends.