Philip Morris Romania generates 1.27 billion RON in direct added value to the country’s economy

Philip Morris Romania and Strategic Thinking Group have released the study ‘The Economic Impact of Philip Morris International in Romania – Philip Morris International’s Contribution to Value Creation and Sustainable Development in Romania’.   This is the second study of its kind conducted by Strategic Thinking Group for Philip Morris Romania, following the first one which focused on the company’s economic activity and its impact in 2021. Philip Morris International (PMI) operates in Romania through two entities: Philip Morris Trading and Philip Morris Romania. According to the study conducted by Strategic Thinking Group, in 2023, the total economic impact of the two companies reached 10.1 billion RON.   The study analyzes the evolution of key indicators related to the activity of PMI group companies in Romania in 2023, and the impact of this activity from economic, social, and cognitive perspectives, as follows: · In 2023, the company’s direct added value to Romania’s economy reached 1.27 billion RON, up from nearly 880 million RON. · The total impact on Romania’s economy, including VAT and excise duties, amounted to 10.1 billion RON, representing 0.63% of GDP. · Taxes paid to the Romanian state totaled approximately 4 billion RON. · The value of smoke-free product exports exceeded 1 billion RON. · Over 1,500 direct employees and around 9,000 jobs supported through direct, indirect, and induced effects.   The company’s impact is also felt in the labor market and across the value chain. The study shows that Philip Morris Romania is the second-largest player in Romania’s FMCG sector in terms of employee numbers. Between 2021 and 2023, the number of employees in the company increased by 31%, reaching over 1,500 people. This growth reflects an average annual increase of 15%—well above previous levels and significantly higher than the 2% average growth rate of Romania’s manufacturing sector during the same period. In total, the number of jobs generated by the company reached over 9,000 through direct, indirect, and induced effects.   PMI also contributes to the local economy through employee income. In 2023, total personnel expenses—including salaries, benefits, pension contributions, and social insurance payments—amounted to approximately 209 million RON. Between 2019 and 2023, cumulative employee-related expenses reached around 777 million RON.   The company offers a fair working environment, where women earn 12.5% more than men. This positive gap stands in stark contrast to the national average, where women earn 3.8% less than men. Moreover, a significant portion of the company’s workforce is young: 23% of employees are under 30 years old, compared to the national average of 13%.   The study also shows that PMI invests in developing human capital through training programs, research, and support for young professionals.   Both entities maintain commercial relationships with 4,322 suppliers across various sectors, with total spending along the value chain amounting to approximately 4 billion RON. These suppliers span multiple industries, supporting a vast and diversified local economic ecosystem.   “The impact study conducted by Strategic Thinking Group clearly shows that Philip Morris makes a major contribution to the development of the Romanian economy—both through substantial taxes and duties paid to the state budget, and through the impressive volume of exports that strengthen the country’s trade balance. Beyond these quantifiable aspects, the company also stands out for its close collaboration with Romanian entrepreneurs and suppliers, thereby supporting the local business ecosystem. These elements confirm its role not only as a major investor, but also as an active partner in enhancing the competitiveness and sustainability of the national economy.” – Remus Stefureac, President Strategic Thinking Group   “PMI’s impact on Romania’s economy continues to be remarkable, building on a tradition that began over three decades ago. Beyond the company’s direct economic influence—through spending on taxes, salaries, and suppliers, as well as job creation and retention—the multiplier effects of these activities have a significant influence on integrated economic chains, both upstream and downstream. The sustained investments over time, especially those aimed at implementing new technologies, have led to an additional increase in productivity, which is already at a high level. This positions PMI not only as a major fiscal contributor in Romania, but also as a notable global exporter.” – Laurian Lungu, macroeconomist