Philip Morris International (PM.N), helped by increasing cigarette pricing, demand for its heated tobacco products, and the quick development of its oral nicotine product ZYN, increased its annual profit prediction on Thursday after exceeding expectations for quarterly earnings.
The demand for its heated tobacco products, IQOS and ZYN nicotine pouches, which it bought from oral nicotine business Swedish Match last year, and increased prices for its combustible cigarettes have helped the company.
For Philip Morris, labor and tobacco prices are now lower than during the epidemic. The business stated in July that it anticipated these charges’ negative effects to lessen in the second half of the year. Additionally, it has turned to smoking alternatives to combat tighter rules and declining demand for its core goods in some areas.
Countries like Japan and Italy are interested in its market-leading heated tobacco gadget, the IQOS. At the same time, the important U.S. market has also shown an interest in other products like ZYN.
In September, the business hoped to generate more than two-thirds of its net sales from smokeless goods like IQOS heated tobacco sticks by 2030. ZYN nicotine pouch shipment volumes increased 65.7% year-over-year in the third quarter, compared to a 53.1% increase in the second quarter, according to the Connecticut-based firm that distributes them in the United States.
In contrast to its previous projection of $5.96 to $6.05 per share, Philip Morris anticipates an adjusted annual profit of between $6.05 and $6.08 per share. It announced $1.67 in adjusted earnings per share for the third quarter. According to LSEG statistics, analysts had projected an average profit of $1.61 per share.
