Philip Morris lowers FY guidance as Russian exit weighs on operations

Philip Morris lowered full-year earnings forecasts on Thursday as the tobacco giant said it had been impacted by the pullback of its Russian operations, higher costs and a slower-than-expected recovery in its Asian duty-free business.

The Connecticut-based company took a charge of $0.03 per share in the first quarter due to the war in Ukraine after it moved to discontinue sales of a number of Marlboro and Parliament products in Russia. It also cancelled product launches for the year and suspended planned investments following Moscow's invasion of neighbouring Ukraine.

Philip Morris said first-quarter earnings fell 3.6% to $2.32bn, or $1.50 per share, including the charge, with Russia generating revenue of more than $1.8bn last year - approximately 6% of the company's global sales.

Philip Morris also moved to cut its forecast for 2022 adjusted earnings per share to between $5.45 and $5.56, down from between $6.12 and $6.30, amid soaring costs.

As of 1440 BST, Philip Morris shares were up 0.15% at $103.22 each.