Philip Morris and Altria: High Noon in Marlboro Country

Ever since the separation of Philip Morris International (PMI) from its former parent company Altria in 2008, the scenic Marlboro Country promoted in the famous ad campaigns has in fact been two countries. On the one hand there is the United States, birthplace of the modern reincarnation of the Marlboro brand, and on the other … Continue reading Philip Morris and Altria: High Noon in Marlboro Country

Imperial Brands Becomes First Tobacco Major to Suspend Russian Operations

Imperial Brands issued a press release today stating it will suspend manufacturing and sales of its tobacco products in the Russian Federation. The company operates a manufacturing facility in Volgograd and is estimated to be the fourth largest tobacco company operating in Russia, holding approximately 8.4% share of the market during 2020. Imperial Brands stated … Continue reading Imperial Brands Becomes First Tobacco Major to Suspend Russian Operations

Cashed Demographic Dividends: Why Inflation Could Stick

The marked acceleration in US inflation numbers this year has sparked a fierce debate about longer-term inflation expectations. At the center of the debate is the question whether high inflation is transitory, resulting from the inefficiencies caused by the sudden stop and start of economic activities, or if it will prove to be a more … Continue reading Cashed Demographic Dividends: Why Inflation Could Stick

Swedish Match Stubs Out The Cigars

Swedish Match recently announced its intention to separate the US cigar division from its smoke-free and lights segments. The company is planning to spin off its US cigar business through a distribution of shares in a new, publicly listed US entity to existing shareholders. Swedish Match will realize value from the transaction by transferring existing … Continue reading Swedish Match Stubs Out The Cigars

Philip Morris Adds A Piece To The Smokefree Puzzle

Last week Philip Morris International announced it has agreed to buy Fertin Pharma from current owners EQT (70%) and the Bagger-Sørensen family (30%). The transaction value is roughly $820 million, for a price/sales multiple of somewhat over 5x, and an EV/EBITDA valuation of approximately 15x (using fy2020 financial data). Fertin Pharma started as a candy … Continue reading Philip Morris Adds A Piece To The Smokefree Puzzle