Philip Morris (PM) reported earnings on April 21 and reiterated
the firm's commitment to its dividend during these uncertain times:
We also expect
that strong cash flows will exceed cash requirements, including the funding of
dividends to which we remain fully committed...
Crucially, our organization, liquidity, and balance sheet are strong. We'll continue to protect and support our employees, serve our consumers, and reward our shareholders, which clearly includes our strong commitment to a dividend.
Crucially, our organization, liquidity, and balance sheet are strong. We'll continue to protect and support our employees, serve our consumers, and reward our shareholders, which clearly includes our strong commitment to a dividend.
The international maker of Marlboro cigarettes and IQOS
heated tobacco products expects to remain relatively resilient overall during
the pandemic.
In developed markets such as the the European Union (15% of
shipments) and Japan (7%), which tend to have strong social support programs,
Philip Morris has so far not seen any impact on consumption.
Management also noted that, technically, people staying home
have more opportunities to smoke than when they are at work. And in periods of
uncertainty, while people tend to buy lower-priced products, they are also more
likely to trust known brands from safe sources.
From a supply perspective, the company does not anticipate
out-of-stock situations in any major markets and generally expects consumers to
have adequate access to its products.
With that said, Philip Morris has seen three negative
effects on its business.
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