Philip Morris reported EPS fell on a writedown, while its adjusted EPS rose 15 percent

Reported earnings per share fell. The cause is a writedown, not the business.

Philip Morris International said reported diluted EPS dropped 7.7 percent to $1.80 in the second quarter, in results dated July 22, driven by a non-cash impairment of its RBH equity investment. That charge reduces accounting profit without spending any cash. Strip it out, and the company's adjusted diluted EPS rose 15.2 percent to $2.20, or 13.6 percent excluding a favorable currency effect.

The operating results point the same way as the adjusted figure. Net revenues rose 10.4 percent to $11,192m, past $11bn for the first time, and operating income rose 22.0 percent. Shipments grew 2.5 percent, carried by a 7.5 percent rise in smoke-free volumes led by IQOS, and the smoke-free business now accounts for about 42 percent of net revenues across 109 markets.

The company narrowed its full-year reported diluted EPS forecast to a range of $7.19 to $7.34. Jacek Olczak, the group chief executive, said a strong first half left the company well positioned to meet its full-year targets while continuing to invest.