Philip Morris International Inc. (NYSE:PM) stock fell 0.51% (As on February 10, 11:38:35 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. During the quarter, net revenues from combustible products were up 1.3% to $5,214 million (on an organic basis). Revenues from smoke-free products (excluding Wellness and Healthcare) jumped 23% to $2,866 million. Net revenues from the Wellness and Healthcare segment came in at $72 million in the fourth quarter, down 18.8% on an organic basis. During the quarter, net revenues from smoke-free products formed 36% of the company’s total revenues. Total IQOS users at the end of the fourth were estimated at roughly 24.9 million (including nearly 17.8 million who switched to IQOS and stopped smoking). Total cigarette and heated tobacco unit shipment volumes increased by 1.2% to around 186 billion units. Cigarette shipment volumes dropped 2.8% to around 154 billion units in the quarter, while heated tobacco unit shipment volumes of 32 billion units rose 26.1% year over year. Excluding Ukraine and Russia, net revenues grew 7.9% on an organic basis, and total shipment volumes rose 2.6%.

PM in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.39, beating the analysts’ estimates for the adjusted earnings per share of $1.29, according to  Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 7.5 percent to $8.15 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $7.48 billion. The year-over-year upside was backed by an improved volume/mix and higher pricing variance (mainly due to increased combustible tobacco pricing).  Excluding Ukraine and Russia, net revenues grew 7.9% on an organic basis. Philip Morris ended the quarter with cash and cash equivalents of $3,207 million. It had long-term debt of $34,875 million and a shareholders’ deficit of $6,311 million as of Dec 31, 2022.

Meanwhile, the company has unveiled a long-term partnership with KT&G to continue commercializing the innovative smoke-free devices and consumables of the latter on a unique, worldwide basis (excluding South Korea). The deal covers 15 years and is likely to enhance Philip Morris’ smoke-free product portfolio.

Management expects operating cash flow of $10-$11 billion in 2023, with the capital expenditure likely to be around $1.3 billion.