Revenue during the quarter grew 4.45 percent to $19,189 million from $18,371 million in the previous year period. Gross margin for the quarter expanded 144 basis points over the previous year period to 23.31 percent. Total expenses were 86.39 percent of quarterly revenues, down from 89.65 percent for the same period last year. This has led to an improvement of 326 basis points in operating margin to 13.61 percent.

Operating income for the quarter was $2,612 million, compared with $1,901 million in the previous year period.

"Our results last year underscore the strength of our existing business, driven by our world-class brand portfolio, the enormous promise of our Reduced-Risk Products and the tremendous commitment of our talented employees," said André Calantzopoulos, chief executive officer. "We continue to make considerable progress on the development, assessment and commercialization of our Reduced-Risk Products. Our ambitious goal, to transform PMI from a manufacturer of combustible tobacco products to an RRP-focused company, took a further important step forward at the end of 2016 with the submission of our Modified Risk Tobacco Product Application for our heat-not-burn IQOS product to the U.S. Food and Drug Administration."

For financial year 2017, Philip Morris International Inc forecasts diluted earnings per share to be in the range of $4.70 to $4.85.

Debt moves up marginally
Philip Morris International Inc has witnessed an increase in total debt over the last one year. It stood at $29,067 million as on Dec. 31, 2016, up 2.06 percent or $587 million from $28,480 million on Dec. 31, 2015. Total debt was 78.88 percent of total assets as on Dec. 31, 2016, compared with 83.87 percent on Dec. 31, 2015.