Philip Morris Develops its Brand Portfolio Responding to Customers Demands
Philip Morris International (PMI) profit of $1.25 per share in the 1Q of 2012 has risen from the year-ago profits of $1.05 and also outperformed the Zacks Consensus Forecast of $1.18. These results were prompted by advantageous pricing and volume mix as well as a great performance in Africa, Asia, Eastern Europe and Middle East. The company currently declared a new share buy back of about $18.0 billion. This new initiative is planned to launch straight after the end of the actual $123 billion share repurchase program, which started in May 2010.The cigarette giant has an objective of repurchasing shares worth$6.0 billion during 2012. PMI continues to pay its quarterly dividend regularly.
The manufacturer’s popular brand portfolio is continuing to enrich with famous brand names as Marlboro, L&M Slims, Parliament filter and many others. Philip Morris is consolidating its brands by means of modern technologies and innovations that correspond to customers demands. The L&M brand is being renewed by the introduction of smoking products possessing a milder taste and catchy package design. Also, the portfolio of premium cigarettes as Parliament, Virginia Slims and Chesterfield and those with a more reasonable price as Red & White and Bond Street are being permanently developed and regenerated. Also, it should be noted that PMI has a strong presence in a great number of markets that assure it with a long-term growth chance despite some economic difficulties. It owns a huge share in developing markets. As about countries, Asia is the main growth engine for the company.
The situation in Japan continues to be positive even after the March disaster. Industry experts expect Asia to be the main driver in the company’s long-run development. Through certain acquisitions as for instance Sampoerna in Indonesia, the company has received a strong base in non OECD markets. However, at present governments all around the world are passing restrictions on cigarette companies to discourage cigarette users in their countries, which in turn is affecting tobacco use around the world. Moreover, the US Food and Drug Administration (FDA) has adopted a regulation that will force cigarette producers to place health graphic warnings on cigarette packages.
All these actions that reduce the use of smoking products, together with the decreased social acceptance of smoking, will negatively influence the PMI’s volume in many markets. Also, a significant number of retailers started to sell fake versions o the company’s best –selling cigarette brands. According to findings, Miami is one of the leading places of counterfeit tobacco products. Such way of trafficking influences not only the company’s profit but also reputation.By Clark Moore, Staff Writer Copyright © 2012 Hot-Cigs.com All rights reserved.