Philip Morris International Inc., famous cigarette manufacturer which produces Marlboro and other successful cigarette brands such as L&M and Parliament, presented its report on Thursday.
With raising prices on cigarettes and trimming expenses, Philip Morris International managed to remain leading tobacco company even if today smokers turn on cheaper cigarettes. Smokers face various anti-tobacco measures such as bans, tax increases, health-concerns in the entire world, however, in the USA are taken more severe anti-smoking measures.
As a result of economic problems in the European Union and a recent tax increase in the Philippines, cigarette supplies dropped 6.5% to 205 milliard cigarettes the first quarter that ended in March.
Shipments grew 1.4% in Eastern Europe, Africa, the Middle East , but dropped about 10% in both the European Union and Asia. Shipments also fell 7.5% in Latin America and Canada. Shipments had grown 5% the year before.
Company representatives said that Asia is their largest growth area and there cigarette volume grew almost 3% if it didn’t count the Philippines.
Philip Morris benefited from increases in Japan after earthquake and tsunami in March 2011. These events provided the company a perfect sales opportunity because blackouts made Japan Tobacco Inc. stop shipping cigarettes within Japan. Besides this, it bought Philippines company Fortune Tobacco Co. in February 2010, improving its Asian business.
Shipments of Marlboro cigarettes fell nearly 5% in the quarter, to 68.7 milliard cigarettes. Instead, L&M and Parliament brands got gains.