Philip Morris CR announced its financial results for the first half of this year. Net profit decreased by 7.2% yoy to CZK1.5bn, while revenues remained stable at CZK10.7bn. This decline is due to the shrinking market for smoking products. The dividend for 2026 could reach CZK1,080 per share, representing a gross yield of +5.9%. The reported figures are slightly better (+1.9%) than our estimate in terms of net profit.

Philip Morris CR announced its financial results for the first half of this year. Net profit decreased by 7.2% yoy to CZK1.5bn, while revenues remained stable at CZK10.7bn. This decline is due to the shrinking market for smoking products. The dividend for 2026 could reach CZK1,080 per share, representing a gross yield of +5.9%. The reported figures are slightly better (+1.9%) than our estimate in terms of net profit.

Total revenue for 1H26 was slightly higher than last year (+0.4%), reaching CZK10.7bn. In the Czech Republic, revenue remained at CZK6.4bn. The number of units sold decreased by 3.1% yoy. This reflects a decline in the tobacco products market. However, favorable price trends offset this decline. The market share was 39.6% (39.8% in 1H25), with the decline in cigarettes (-0.6pps) nearly compensating for the increase in heated tobacco products (+0.4pps). In Slovakia, revenues stood at CZK3.1bn, up +3.0% yoy. Market share fell from 50.3% to 48.9%. As in the Czech Republic, the share of cigarettes fell by 2.1pps, while heated products rose by +0.7pps. The volume of units sold increased by +3.1% yoy, driven by smoke-free refills. Revenue from manufacturing services decreased by 4.1% yoy, reaching CZK1.2bn. This decline is due to the transformation of the production plant in Kutná Hora. Production of innovative products, such as nicotine pouches, began in May. This should be reflected in the results for the second half of the year. The decline in the tobacco products market is caused by consumers' shift towards innovative products. Operating profit fell 7.2% yoy to CZK1.8bn. This decline was primarily caused by a decrease in the sales volume of traditional products in both markets. This decline was partially offset by favorable price trends and the smokeless products. Net profit for 1H26 stands at CZK1.5bn, a 7.2% yoy decline.

Dividend: PMCR typically pays out its entire net profit. In our estimates, the results for the first half of the year suggest a full-year dividend of CZK1,080 per share. Compared with the current market price, this corresponds to a gross yield of +5.9%.