philip morris equity, debt and subsidiaries

Accuracy score :
97%

Philip Morris International Inc

Summary (from latest annual report – 2015)

  • Total equity  : 67.36 billion USD
  • Market Cap is 152.1 billion USD ( last price of the stock is 98.17 USD)
  • Philip Morris International Inc is a holding company. The Company through its subsidiaries manufactures and sells cigarettes and other tobacco products
  • Equity of total company increased from 65.71 billion USD in 2014 to 67.36 billion in 2015
  • Company has 3.41 billion USD in cash on account (from latest annual report  2015 year)
  • Total equity – cash on account = 67.36 billion usd – 3.41 billion usd = 63.95 billion usd
  • In 2015 company has 25.25 billion usd long-term debt, short – term debt was 3.23 billion usd (In 2014 company had 26.92 billion usd long-term debt , short-term debt was 2.52 billion usd)
  • PM balance sheet has become stronger  in 2015 (In latest annual report - total equity increased to 67.36 billion  USD from 65.71 in 2014, total debt was 28.48 billion usd in 2015)
  • Company's revenue decreased in 2015 to 26.79 billion usd from 29.76 billion in 2014
  • Net income decreased in 2015 to 6.87 billion USD from 7.49 billion usd in 2014
  • In 2015 company paid 6.25 billion usd dividend to its shareholders
  • On the balance sheet, Philip Morris has 35 billion worth of treasury stock.  PM has re-purchased 35 billion worth of their own shares.

 

Philip Morris International Subsidiaries Inc

 

Philip Morris International Inc is a holding company. The Company through its subsidiaries manufactures and sells cigarettes and other tobacco products in markets outside the United States of America. The most recognized and best selling product of the company is Marlboro. Until a spin-off in March 2008, Philip Morris International was an operating company of Altria Group. Altria explained the spin-off, arguing PMI would have more "freedom" outside the constraints of US corporate ownership in terms of potential litigation and legislative restrictions to "pursue sales growth in emerging markets.", while Altria focuses on the United States.  

 

Philip Morris International standalone subsidiaries are :

 

  •  Massalin Particulares S.A. was formerly known as Massalin & Celasco S.A. and changed its name to Massalin Particulares S.A. in 1980 – worth 300 million usd
  • In 1996 philip morris acquired Tabaqueira for 230 million usd, Tabaqueira is the dominant player in tobacco in Portugal, thanks to its dominance in cigarettes and lead in RYO tobacco. This player continued to gain share in 2014, benefiting from its wide distribution reach and well-known brands such as Marlboro and Chesterfield – worth 600 million usd
  • In 2003 Philip Morris acquired Papastratos Cigarette Manufacturing Company for 368 million eur
  • In 2005 Philip Morris acquired Compania Colombiana de Tabaco S.A. for 310 millon usd
  • In 2005  Philip Morris announced a 5.2 billion usd cash offer for HM Sampoerna, Indonesia's third-largest cigarette maker, in a deal that would give the US tobacco group a strong foothold in the world's fifth-largest tobacco market
  • In 2008 Philip Morris acquired Rothmans, Benson & Hedges Inc. for 2 billion usd
  • In 2009 Philip Morris acquired Leonard Dingler for undisclosed amount
  • In 2010 the Philippine unit of Philip Morris International and unlisted Fortune Tobacco Corp. (FTC) will combine their core businesses in a new company which will control 90% of the local cigarette market. Philip Morris and Fortune Tobacco concluded an agreement to form a new company called PMFTC - worth 1 billion usd
  • In June 2014, PM acquired 100% of Nicocigs Limited, a leading U.K.-based e-vapor company, for the final purchase price of 103 million usd

 

 

On December 12, 2013, PM acquired from Megapolis Investment BV a 20% equity interest in Megapolis Distribution BV, the holding company of CJSC TK Megapolis ("Megapolis"), PMI's distributor in Russia. The purchase price of $760 million excludes an additional payment of up to $100 million, which is contingent on Megapolis's operational performance over the four fiscal years following the closing of the transaction.

 

On September 30, 2013, PM acquired a 49% equity interest in United Arab Emirates-based Emirati Investors-TA (FZC) ("EITA"), formerly Arab Investors-TA (FZC), for approximately $625 million.

           

 Total =11.26 billion usd

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is very big (28.48 billion usd), big amount of cash on company's account, ROE is around 70 %).