JAKARTA (TheInsiderStories) – Philip Morris International Inc. (PMI) revealed Monday that the cigarette market share of its Indonesian subsidiary HM Sampoerna edged lower to 33.4% in 2016, down from 34.3% in previous year, or lost 0.9%, in line with a decline of the size of cigarette market.
Total cigarette market in 2016 totaled 315.6 billion unit of cigarette sticks, down from 320 billion units in previous year. In the fourth quarter, the total cigarette market reached 80.5 billion units, down 3.1% from 83.1% in the same quarter in 2015.
In full year 2016, HM Sampoerna sold 105.524 billion units, down 3.9% from 109.840 billion units in previous year. In the fourth quarter it sold 26.732 billion units of cigarette sticks, down 4.23% from 27.945 billion units in the same quarter in 2015.
Its leading brands captured market share as follows: Sampoerna A 14.6%, Dji Sam Soe 6.9%, U Mild 4.7%, Others 8.1%.
“For the full year, the estimated total cigarette market decreased by 1.4%, mainly reflecting a soft economic environment and the impact of excise tax-driven price increases,” Philip Morris said in a statement.
The decrease in PMI’s cigarette shipments was mainly due to lower market share, reflecting the soft performance of PMI’s SKM portfolio, due to competitors’ - 20 - discounted product offerings, and PMI’s SKT portfolio, broadly in line with industry trends, as well as a lower estimated total market, it said.
In the quarter, the estimated total cigarette market decreased by 3.1%, reflecting the same dynamics as for the full year. The decrease in PMI’s cigarette shipments was mainly due to a lower estimated total market, as well as lower market share mainly reflecting the soft performance of PMI’s SKT portfolio, broadly in line with industry trends.
Globally PHMI recorded revenues of USD26.7 billion, down 0.4% from previous year of USD26.79 billion. Net revenues from the Asian regino, excluding excise taxes, reached USD8.7 billion increased by 5.8%.
“Our results last year underscore the strength of our existing business, driven by our world-class brand portfolio, the enormous promise of our Reduced-Risk Products and the tremendous commitment of our talented employees,” said André Calantzopoulos, Chief Executive Officer.
“We continue to make considerable progress on the development, assessment and commercialization of our Reduced-Risk Products. Our ambitious goal, to transform PMI from a manufacturer of combustible tobacco products to an RRP-focused company, took a further important step forward at the end of 2016 with the submission of our Modified Risk Tobacco Product Application for our heat-not-burn IQOS product to the U.S. Food and Drug Administration.”
“We have entered 2017 confident that our base business fundamentals are in robust shape, and increasingly excited by the tremendous potential of our RRP portfolio to materially accelerate our overall business and contribute significantly to our commitment to generously reward our shareholders in the years to come. (*)
Asia