Net revenues from smoke-free products reached $14.7 billion in 2024, representing 38.7% of total net revenues. This highlights the company's continued shift towards smoke-free alternatives.

The company is progressing with plans to build manufacturing capacity for its smoke-free products and continues to optimize its manufacturing infrastructure. This demonstrates a strategic focus on expanding smoke-free product offerings.

PMI continues its collaboration with KT&G to commercialize smoke-free devices and consumables on an exclusive, worldwide basis (excluding South Korea). This will enhance PMI's existing portfolio of smoke-free products.

The company continues to advocate for science-based regulatory frameworks for smoke-free products and has obtained authorizations for IQOS and ZYN products in the U.S. This demonstrates management's ability to navigate regulatory hurdles.

PMI is taking actions to mitigate the effects of inflation, including indexation clauses, tactical inventory purchases, and supplier negotiations. This indicates management's proactive approach to cost management.

The company is actively managing its supply chain and seeking alternative sources for materials and services. This demonstrates a focus on mitigating operational risks and ensuring product availability.

The 10-K filing states that financial results could be materially affected by regulatory initiatives resulting in a significant decrease in demand for PMI's brands or impeding adult consumers' ability to convert to SFPs.

The Russian invasion of Ukraine poses risks including retaliatory action by the Russian government, deprivation of rights in assets, and nationalization of foreign businesses. These developments have and will continue to have a material adverse impact on PMI's business, results of operations, cash flows and financial position.

The company relies heavily on its and third-party information technology networks and systems, and a cybersecurity incident or attack against those networks or systems may adversely impact the business and operations.

The company is subject to highly competitive conditions in all aspects of its business, including product quality, brand recognition, brand loyalty, taste, R&D, innovation, packaging, customer service, marketing, advertising and retail price.

The competitive environment and the company's competitive position can be significantly influenced by adult smoker willingness to convert to SFPs.

The company's business is subject to changes in adult consumer preferences, which may be influenced by local economic conditions, accessibility to the company's products and availability of accurate information related to the company's products.

The company increasingly relies on third parties and their subcontractors/suppliers for product distribution and to manufacture some of its products and product parts, which diminishes the company's direct control.

A prolonged disruption at or shut-down of one or more of the facilities where the company's products are produced could limit the company's capacity to meet customer demands.

Government mandated prices, production control programs, and shifts in crops driven by economic conditions may increase the cost or reduce the quality of the tobacco and other agricultural products used to manufacture the company's products.

Research and development expense for the smoke-free portfolio accounted for approximately 100% of total research and development expense for the year ended December 31, 2024.

The company's trademarks are valuable assets, and their protection and reputation are essential to the company. The company owns the trademark rights to all of its principal brands, including Marlboro (outside of the U.S.), HEETS, IQOS, IQOS ILUMA, TEREA, VEEV and ZYN.

The company's intellectual property protection may not be equally available in every country in which it operates or in which its products are sold. If the steps the company takes to protect its intellectual property rights globally are inadequate, the company's business, financial condition, and results of operations could be adversely impacted.

Capital expenditures were $1.4 billion in 2024 and $1.3 billion in 2023. The 2024 expenditures were primarily related to the ongoing investments in smoke-free product manufacturing capacity.

On May 11, 2022, the company announced the suspension of its three-year share repurchase program following the recommended public offer to acquire the outstanding shares of Swedish Match from its shareholders.

During the third quarter of 2024, the Board of Directors approved a 3.8% increase in the quarterly dividend to $1.35 per common share. As a result, the present annualized dividend rate is $5.40 per common share.

The company's environmental and occupational health and safety management program includes policies, standard practices and procedures at all its manufacturing centers.

New environmental-related legal or regulatory requirements may lead to additional carbon taxation, raw or other materials taxation, energy price increases, new compliance costs, increased distribution and supply chain costs, and other expenses impacting the company's cost of operations.

The company reports externally about its climate change mitigation strategy, together with associated targets and results in reducing its carbon footprint, through CDP.

The company's business faces significant governmental action aimed at increasing regulatory requirements with the goal of reducing or preventing the use of tobacco or nicotine-containing products.

Significant increases in cigarette-related taxes have been proposed or enacted and are likely to continue to be proposed or enacted in numerous jurisdictions. These tax increases may disproportionately affect the company's profitability and make it less competitive versus certain of its competitors.

Changes in the earnings mix and changes in tax laws may result in significant variability in the company's effective tax rates.