![]() While acknowledging that the impact from the Covid-19 pandemic is difficult to predict, both maintained their full-year forecasts. According to the press release from April 21, all heated-tobacco unit facilities were operational while manufacturing facilities representing 20 percent of the company’s cigarette production were closed.īritish American Tobacco (BAT) and Japan Tobacco International (JTI) provided a similar picture in their first quarter 2020 results. The company reemphasized that it maintained sufficient inventory of inputs and finished goods and didn’t expect to see a disruption to its supply. “We also have to assume that, in certain markets, unemployment and related reductions in disposable income will have a temporary impact on market dynamics or the ability of certain small retailers to operate,” said Calantzopolous. The pandemic, he said, had already severely reduced the company’s duty-free sales, slowed IQOS user acquisition and delayed minimum price enforcement in Indonesia. However, CEO Andre Calantzopolous expected the pandemic to adversely impact PMI’s full-year results. Amid growing uncertainty, Philip Morris International (PMI) in April announced strong quarterly results, generating net revenues of $7.15 billion in the first three months of 2020, up from $6.75 billion during the same period last year. Living up to its reputation, the tobacco industry has so far appeared resilient (see “An Ill Wind,” Tobacco Reporter, May 2020). Under anti-coronavirus restrictions, consumer behavior changed in many countries as distribution channels were cut off and the question of what constitutes an “essential business” was hotly debated. Entire industries have been paralyzed, supply chains have been disrupted and global travel has been placed into an artificial coma. On its journey around the globe, the virus has prompted governments to introduce strict measures to curb infections. Roughly six months have passed since China announced the outbreak of a mysterious lung disease, and Covid-19 is still raging around worldwide.
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