Philip Morris to Post $500 Million Impairment on Canada Affiliate

Dow Jones06-02

By Colin Kellaher

Philip Morris International is booking a roughly $500 million impairment charge in the second quarter to reduce the carrying value of its investment in Canadian affiliate Rothmans Benson & Hedges, or RBH.

Philip Morris on Tuesday said the charge will clip its reported earnings by 33 cents a share, and the Stamford, Conn., tobacco company lowered its full-year per-share earnings guidance to $7.18 to $7.33 from an April forecast of $7.56 to $7.71 to reflect the charge and updated currency impacts.

The company also lowered its full-year adjusted-earnings forecast to $8.31 to $8.46 a share from the prior $8.36 to $8.51 a share, also for currency impacts.

Analysts polled by FactSet, on average, are expecting full-year adjusted earnings of $8.40 a share.

Philip Morris said the RBH charge reflects updated five-year financial projections from its affiliate reflecting current industry dynamics, adding that it expects the remaining carrying value of its RBH investment will be less than $100 million.

RBH and other major tobacco brands last year agreed to pay 32.5 billion Canadian dollars (US$23.5 billion) to settle all smoking-related lawsuits in Canada.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

June 02, 2026 07:14 ET (11:14 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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