Philip Morris withdraws FY guidance despite Q1 earnings beat

Tobacco giant Philip Morris saw first-quarter profits and sales come in higher year-on-year, but withdrew its 2020 full-year guidance on Tuesday all the same as a result of the Covid-19 pandemic.

Philip Morris posted earnings of $1.83bn, or $1.17 on a per share basis, for the three months ended 31 March - up from $1.35bn in the same quarter a year earlier.

Adjusted earnings came to $1.21 per share, ahead of expectations of $1.13 on the Street, while sales rose 6% to $7.15bn.

Chief executive André Calantzopoulos said the pandemic would result in reduced duty-free sales, slower user acquisition for IQOS and delayed minimum-price enforcement in Indonesia.

"We also have to assume that, in certain markets, unemployment and related reductions in disposable income will have a temporary impact on market dynamics or the ability of certain small retailers to operate," said Calantzopoulos.

As of 1300 BST, Philip Morris shares were down 0.48% in pre-market trading at $76.49 each.