Philip Morris International (PM) risk factors: FY2025 10-K

1. We may be unsuccessful in our efforts to introduce, commercialize, and grow smoke-free products in existing and new markets, and regulators may prohibit or significantly restrict the commercialization of these products or the communication of scientifically substantiated information and claims.reworded
2. Consumption of tax-paid cigarettes continues to decline in many of our markets.
3. Our business faces significant governmental actions aimed at increasing regulatory requirements with the goal of reducing or preventing the use of tobacco or nicotine-containing products.reworded
4. The success of our business in the United States is dependent on an evolving legal and regulatory framework.new
5. We may be unable to anticipate changes in adult consumer preferences.
6. The financial and business performance of our smoke-free products is less predictable than our cigarette business.
7. Our ability to grow profitability may be limited by our inability to introduce new products, enter new markets, maintain sufficient production capacity, or improve our margins through higher pricing and improvements in our brand and geographic mix.
8. Our management uses certain key business metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions and such metrics may not accurately reflect all of the aspects of our business needed to make such evaluations and decisions, in particular as our business continues to evolve.
9. Our ability to achieve our strategic goals may be impaired if we fail to attract, motivate and retain the best global talent and effectively align our organizational design with the goals of our transformation.

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1. Cigarettes are subject to substantial taxes. 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 our profitability and make us less competitive versus certain of our competitors.
2. We may be unsuccessful in our efforts to differentiate smoke-free products and cigarettes with respect to taxation.
3. Changes in the earnings mix and changes in tax laws may result in significant variability in our effective tax rates. Our ability to receive payments from foreign subsidiaries or to repatriate royalties and dividends could be restricted by local country currency exchange controls and other regulations.
4. Disruptions in the credit markets or changes to our credit ratings may adversely affect our business.
5. We may be required to write down assets due to impairment, which could have a material adverse effect on our results of operations or financial position.

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1. Our business, results of operations, cash flows and financial position may be adversely impacted by the continuation and consequences of the war in Ukraine.

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1. Use of third-parties may negatively impact the distribution, quality, and availability of our products and services, and we may be required to replace third-party contract distributors, manufacturers or service providers.
2. Risks related to the natural environment and related legal or regulatory developments may have a negative impact on our business and results of operations.new
3. Government mandated prices, production control programs, and shifts in crops driven by economic conditions may increase the cost or reduce the quality of tobacco and other agricultural products used to manufacture our products.reworded
4. A prolonged disruption of facilities used to produce our products could have a material adverse effect on our business, financial condition and results of operations.reworded
5. We could decide, or be required to, recall products, which could have a material adverse effect on our business, reputation, results of operations, cash flows or financial position.

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1. Because we have operations in numerous countries, our results may be adversely impacted by economic, regulatory and political developments, natural disasters, pandemics or conflicts.
2. Our reported results could be adversely affected by unfavorable currency exchange rates and currency fluctuations could impair our competitiveness. Our results could also be adversely affected by capital controls or by foreign currency exchange constraints or devaluations.
3. A sustained period of elevated inflation across the markets in which we operate could result in higher operating and financing costs and lead to reduced demand for our products.

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1. Litigation related to tobacco and nicotine products could substantially reduce our profitability and could severely impair our liquidity.reworded
2. From time to time, we are subject to governmental investigations on a range of matters.
3. We may be unable to adequately protect our intellectual property rights, and disputes relating to intellectual property rights could harm our business.
4. The research, development, and commercialization of non-recreational cannabinoid products subjects the Company to legal, regulatory, reputational and other risks.

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1. Our revenues may be materially adversely affected as a result of counterfeiting, contraband, cross-border purchases, illicit products, non-tax-paid volume produced by local manufacturers, and other non-compliant or illicit cigarettes or smoke-free products.

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1. We are significantly dependent on our and third-party information technology networks and systems, and a cybersecurity incident or attack against those networks or systems may adversely impact our business and operations.Cybersecurity
2. Our or our business partners’ failure or inability to adhere to privacy, data, artificial intelligence and information security laws could result in reputational harm, legal liability, and adversely affect our operating results.newAI
3. We increasingly use artificial intelligence-based solutions in our business, which could result in reputational harm, legal liability, and adversely affect our operating results.newAI

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1. We may not successfully identify, complete, or realize the benefits from strategic acquisitions, divestitures, joint ventures, or investments.

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Headings in the FY2024 10-K with no match this year.

1. The effects of climate change, other environmental issues, and related legal or regulatory responses may have a negative impact on our business and results of operations.
2. We face intense competition, and our failure to compete effectively could have a material adverse effect on our profitability and results of operations.
3. We may be unable to expand our brand portfolio through acquisitions or the development of strategic business relationships, and the intended benefits from our investments may not materialize.
4. Our or our business partners’ failure or inability to adhere to privacy, data, artificial intelligence and information security laws could result in business disruption, loss of reputation and consumer trust, litigation, regulatory action including significant fines or penalties, financial impact, and loss of revenue, assets or personal, confidential, or sensitive data.
5. Accounting adjustments related to acquisitions could adversely affect our financial results.