Philip Morris International raised its annual profit forecast after beating third-quarter estimates, betting on higher prices and resilient demand for its heated tobacco products and ZYN nicotine pouches.
Growing consumer preference for smokeless alternatives to traditional combustible cigarettes and chewing tobacco products in the United States have supported demand for ZYN, which, according to the company, does not contain tobacco.
The Marlboro maker has been investing to expand production capacity for ZYN, in an effort to meet its strong demand.
US ZYN shipments in the quarter grew 41.4% over the prior-year period, as supply-chain constraints started to ease.
The company's flagship heated tobacco device, IQOS, also saw strong growth in regions such as Japan, Europe and Indonesia.
Its consolidated shipment volumes for cigarettes rose 1.3% in the quarter, compared with a 0.4% rise in the preceding three months.
Quarterly Highlights
Philip Morris expects its 2024 adjusted earnings per share, excluding currency, to be between $6.85 and $6.91, compared with its prior range of $6.67 to $6.79.
It reported revenue of $9.91 billion (€9.12 billion) for the third quarter, versus analysts' estimate of $9.69 billion (€8.91 billion), according to data compiled by LSEG.
Its quarterly adjusted profit of $1.91 per share also beat estimates of $1.82 per share.
Jacek Olczak, chief executive officer at Philip Morris, stated, “In the third quarter, we delivered exceptionally strong performance, with record quarterly net revenues and earnings per share.”
“This reflects excellent momentum across all regions and categories, with a reacceleration in IQOS adjusted in-market sales growth, strong ZYN volumes, and resilient combustible performance. As a result of our strong year-to-date delivery, we are raising our full-year growth outlook for adjusted diluted EPS to a range of 14% to 15%, excluding currency,” he added.
News by Reuters, additional reporting by ESM.
