IQOS and Zyn boost PMI quarter

Philip Morris International reported net revenues of $9.14 billion in the third quarter of 2023, up 13.8 percent from the comparable 2022 quarter. Its operating income rose 13.5 percent to $3.37 billion.

PMI sold 193.6 billion cigarettes and heated-tobacco units in the third quarter of 2023, up 2.2 from the 2022 quarter. Shipments of heated-tobacco units alone increased 18 percent to 32.5 billion. Oral product shipments jumped 100 percent to 209 million cans, largely as a result of PMI’s 2022 acquisition of Swedish Match.

Smoke-free products generated $3.3 billion in net revenues during the quarter, an increase of 35.6 percent over the comparable 2022 period. Smoke-free products now account for 36.2 percent of the company’s total net revenues.

PMI estimated the total number of IQOS users at approximately 27.4 million by the quarter’s end. Approximately 19.7 million of those had switched to IQOS and stopped smoking, according to the company.

Zyn nicotine pouch shipment volume in the U.S. totaled 105.4 million cans, representing growth of 65.7 percent versus third-quarter 2022 Swedish Match shipments of 63.6 million cans.

“We delivered a very strong performance in the third quarter, surpassing $9 billion in quarterly net revenues for the first time and generating record quarterly adjusted diluted EPS [earnings per share] of $1.67, representing currency-neutral growth of 20.3 percent,” said PMI CEO Jacek Olczak in a statement.

“This reflects continued excellent business momentum, driven by strong IQOS performance, resilient combustible trends and the exceptional growth of Zyn, which has surpassed our expectations yet again.”