Philip Morris International (PMI) Annual Report Showcases Transformation

Key points:

1.PMI has released its sixth annual integrated report, celebrating its decade-long journey of transformation and sustainable development. The report showcases the company's achievements in new tobacco products, human rights assessments, carbon neutrality, and other areas.

2.The new tobacco product has generated over 75% of net revenue in six markets, with a total investment of over $14 billion since 2008. The company reaches approximately 38.6 million adult users and sells products in 95 markets.

3.61% of PMI's manufacturing facilities have obtained carbon neutrality certification, and they have released their first Environmental Product Declaration (EPD) for the IQOS ILUMA i series products. The smoke-free business accounted for 39% of total net revenue in 2024, with revenue and profit growth accelerating.

On April 3, Philip Morris International (PMI) released its sixth annual comprehensive report on its official website, marking a decade of disclosure on the company's transformation and sustainable development.

The comprehensive report outlines PMI's performance in areas such as business model, product production, and operations. The report's framework of five pillars emphasizes the importance of compliance and risk management, while also focusing on operational efficiency, innovation driving, and purposeful impact. This approach aims to combine business with long-term sustainable goals by influencing standards, policy-making, and driving systemic change, in order to redefine market expectations.

Highlights of the 2024 performance：

• Six markets where more than 75% of net revenues are generated from smoke-free (2023: 3)
• Over USD 14 billion cumulative investment behind smoke-free products since 2008 (2023: USD 12.5)1, 2
• 99% of total shipment volume covered by youth access prevention programs in indirect retail channels (2023: 98%)3
• 0.01% prevalence of child labor among contracted farmers supplying tobacco to PMI (2023: 0.1%)4
• 99% of contracted farmers supplying tobacco to PMI who make a living income (2023: 96%)5
• 10 human rights impact assessments completed since 2018 in highest-risk countries (2023: 8)6
• 61% of PMI manufacturing facilities certified as carbon neutral (2023: 43%)
• First pre-certified environmental product declarations (EPD) published on IQOS ILUMA i series of devices

 Said Jacek Olczak, Chief Executive Officer of PMI，

“Our 2024 Integrated Report celebrates a milestone year that marked the 10th anniversary of the commercialization of IQOS, VEEV and ZYN and our journey toward achieving one of the most ambitious business transformations in modern history. By the end of 2024, our efforts to expand access to smoke-free products allowed us to reach an estimated 38.6 million adult users, with the products available in 95 markets, demonstrating our deep commitment to sustainability and business transformation. These achievements fill me with profound optimism as we continue to create long-term value while addressing our product and operational impacts, not only sustaining but accelerating our momentum, accomplishing a number of goals that only a few years ago seemed too ambitious.”

Said Emmanuel Babeau, Chief Financial Officer of PMI,

“The path to transformation is rarely linear, and our experience in 2024 reinforces a crucial truth: Achieving a smoke-free future requires collective effort beyond our direct control. Our smoke-free business accounted for approximately 39% of PMI’s total net revenues for the full year 2024, with an acceleration in top- and bottom-line growth. Competing in the cigarette market while simultaneously working to transform it is not a contradiction but a necessary phase in our journey. Our integrated approach—linking financial success with positive impact—positions us well to continue investing in the future. We remain confident that our financial strength, combined with our sustainability leadership, is the right path forward.”