Mumbai, India, May 7, 2021 / PRNewswire / – Philip Morris International Inc. (PMI) (NYSE: PM) is pleased to announce this Jacek Olczak was appointed CEO after the company’s 2021 Annual General Meeting 5th of May. Mr. Olczak – most recently the company’s Chief Operating Officer – was also elected to the Board of Directors. André Calantzopoulos, who served as PMI’s Chief Executive Officer from 2013 to 2013 May 5, 2021was appointed Executive Chairman of the Board prior to the meeting. The appointments follow the announcement of PMI’s leadership change in December 2020.
By accepting the appointment, Mr. Olczak pledged to accelerate PMI’s smoke-free transformation announced in 2016. The company is focused on the development, scientific rationale, and responsible marketing of smoke-free products that are less harmful than smoking, with the aim of replacing cigarettes as soon as possible.
Mr. Olczak said, “I am humbled and excited to lead PMI as we accelerate our transition to a smoke-free business. PMI is an industry leader in scientific innovation and we aim to have more than half of our net sales in this space . ” smoke-free products in 2025. Our evolving portfolio will drive our long-term future. We will draw on our scientific research and expertise and use our collective skills and imagination to innovate beyond our existing portfolio and explore new areas of business development. “
Mr. Olczak, 56, started his career at PMI in 1993. He started in various finance and management positions Europe, among other things as managing director of the PMI markets in Poland and Germany and as President of the Region of the European Union before being named Chief Financial Officer in 2012. He held this position until 2018 when he was named Chief Operating Officer of PMI. He has a Masters in Economics from the University of Lodz, Poland.
Mr. Olczak was a key driver of the smoke-free transformation of PMI, which moved into the commercialization phase with the introduction of IQOS Nagoya, JapanUnder his supervision as COO, PMI increased the proportion of its net sales from smoke-free products to 28 percent in the first quarter of 2021. Under the leadership of Mr. Olczak as COO, the company expanded the geographic coverage of PMI’s smoke-free products from zero to 66 markets in key cities or nationwide March 31, 2021. And he led the commercial transformation of PMI, successfully developing it from a primarily business-to-business company to an increasingly business-to-consumer company.
Mr. Calantzopoulos said, “Jacek is ideally positioned to realize PMI’s smoke-free vision in his new role as CEO. His passion for the company and our people underpins his pursuit of results, as does his deep knowledge of our products, systems and values believe he is the ideal leader to ensure the continued growth of our company and increase shareholder value. I look forward to continuing to work with him in my new role as Executive Chairman of the Board. “
Philip Morris International: A Smoke Free Future
Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products for the benefit of adults who would otherwise continue to smoke, society, the company and its shareholders. PMI is a leading international tobacco company that manufactures and sells cigarettes, as well as smoke-free products, related electronic devices and accessories, and other nicotine-containing products in markets outside the United States. In addition, PMI is delivering versions of its IQOS from Platform 1 devices and consumables to Altria Group, Inc. for sale under license in the United States, where these products are approved by the United States Food and Drug Administration (FDA) under the PMTA process ( Premarket Tobacco Product Application) have received a Marketing Authorization; The FDA has also cleared the marketing of a version of IQOS and its consumables as a modified risk tobacco product (MRTP) and has determined that an exposure change order for these products is appropriate to promote public health. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary product development skills, state-of-the-art facilities, and scientific foundations, PMI aims to ensure that its smoke-free products meet adult consumer preferences and meet stringent regulatory requirements. PMI’s smoke-free product portfolio includes non-burning and nicotine-containing vapor products. As of March 31, 2021, PMI’s smoke-free products will be available in 66 markets in key cities or across the country. PMI estimates that around 14.0 million adults worldwide have already switched to IQOS and stopped smoking. Further information is available at www.pmi.com and www.pmiscience.com.
Forward-looking and cautionary statements
This press release contains projections of future results and other forward-looking statements. Achieving future results is subject to risks, uncertainties and inaccurate assumptions. If risks or uncertainties materialize or if the underlying assumptions prove to be inaccurate, the actual results may differ materially from the results contained in these forward-looking statements. In accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI identifies important factors that, individually or collectively, could cause actual results and results to differ materially from those contained in any forward-looking statements by PMI.
PMI’s business risks include: excise tax increases and discriminatory tax structures; Increase in marketing and government restrictions that could affect our competitiveness, affect our ability to communicate with adult consumers, or prohibit certain of our products; health concerns related to the consumption of tobacco and other nicotine-containing products and exposure to tobacco smoke in the environment; Litigation related to tobacco use and intellectual property; intense competition; the effects of economic, regulatory and political developments in global and individual countries, natural disasters and conflicts; Changes in behavior of adult smokers; Loss of revenue as a result of counterfeiting, contraband and cross-border purchases; state investigation; unfavorable exchange rates and devaluations, as well as limitations on ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and the effectiveness of its privacy policy. The future profitability of PMI can also be adversely affected if attempts to manufacture and commercialize reduced risk products are unsuccessful or if regulation or taxation does not distinguish between such products and cigarettes. when it is unable to successfully launch new products, promote brand equity, enter new markets or improve its margins through higher prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and developing strategic business relationships; or when it fails to attract and retain the best global talent. Future results are also subject to the lower predictability of the performance of our reduced risk product category.
The COVID-19 pandemic has caused significant social and economic disruption, closing shops, factories and offices, and restricting manufacturing, distribution and travel, all of which are detrimental to our business, results of operations, cash flow and finances will position during the continuation of the pandemic. Our business continuity plans and other safeguards may not be effective to mitigate the effects of the pandemic. Significant risks currently include our decreased ability to convert adult smokers to our MSRP, significant volume declines in our duty free and certain other key markets, disruptions or delays in our manufacturing and supply chain, increased currency volatility and delays in certain costs Savings, transformation and restructuring initiatives. Our business could also be affected if key personnel or a significant number of employees or business partners are no longer available due to the COVID-19 outbreak. The significant adverse effects of COVID-19 on economic or political conditions in the markets in which we operate could result in changes in the preferences of our adult consumers and reduced demand for our products, especially our medium and high brands Price. The continuation of the pandemic could disrupt our access to credit markets or increase our borrowing costs. Governments may temporarily not be able to focus on developing science-based legal frameworks for developing and commercializing EIAs or on enforcing or implementing regulations that are relevant to our business. In addition, reporting the possible negative effects of using our products on COVID-19 risks may lead to increasingly restrictive regulatory measures for the sale and use of our products, negatively impacting demand for our products and reducing adult consumers’ willingness to switch our EIAs and our efforts to advocate the development of scientifically sound regulatory frameworks for the development and commercialization of EIAs.
The impact of these risks also depends on factors beyond our knowledge or control, including the duration and severity of the pandemic, its recurrence in our key markets, measures taken to contain its spread and mitigate its impact on public health, as well as the ultimate economic consequences of it.
PMI is also subject to other risks that are listed from time to time in its public filings, including Form 10-Q for the past quarter March 31, 2021. PMI cautions that the above list of important factors is not an exhaustive discussion of all of the potential risks and uncertainties. PMI undertakes no obligation to update any forward-looking statements from time to time except in the normal course of its disclosure obligations.
SOURCE Philip Morris International Inc. (PMI)