Philip Morris sales ahead of expectations

Philip Morris CR allowed its shareholders to inspect its books yesterday ahead of its AGM scheduled for April 25. Even though unconsolidated sales decreased by 10%, they were ahead of the market’s and our expectations. The y-o-y increase in unconsolidated net income compared with a decrease in consolidated net income was caused by dividends received from Slovakia worth CZK 818m. PMCR’s dividends are based on unconsolidated figures. Assuming a 100% payout, we expect dividends to reach CZK 1,606 /share, which translate into dividend yield of 8.5%. Note that the dividend record day is April 18. Assuming T+3 settlement, the last day PMCR trades with a right to receive dividends is April 13.

2004Cons y/y change 2004Uncons y/y change Market exp. (Uncons) Sales 13,005 -14% 12,157 -10.00% 11,600 EBITDA 5,464 -16% 5,278 -17% - EBIT 5,012 -18% 4,866 -19% - NI 3,740 -15% 4,410 2% 3,780 EPS 1,362 -15% 1,606 2% 1,372 DPS - - 1,606 2% 1,372 Dividend yield - - 8.5% - 7.2%