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Tag: Philip Morris

  • Reynolds Seeks Dismissal of Lawsuit Over $112M Tobacco Settlement

    Reynolds Seeks Dismissal of Lawsuit Over $112M Tobacco Settlement

    Reynolds American Inc. and R.J. Reynolds Tobacco Co. asked the Delaware Court of Chancery to dismiss a lawsuit by Philip Morris USA over the allocation of payments under Florida’s 1997 tobacco settlement. At a Nov. 10 hearing, Reynolds argued that a previous Delaware ruling requiring ITG Brands to reimburse it for more than $250 million in Florida settlement payments did not increase Philip Morris’ financial obligations or give Reynolds an improper $112 million benefit.

    Philip Morris contends that Reynolds saved $112.8 million from 2015 to 2023 through the settlement’s profit-adjustment formula, shifting a greater share of payments to competitors. The dispute stems from Reynolds’ 2014 sale of Winston, Salem, Kool, and Maverick to ITG Brands, which did not assume the brands’ Florida settlement obligations.

  • PMI to Invest $71M in Philippine Smoke-Free Expansion

    Philip Morris International said it will invest ₱4.5 billion ($71 million) to expand its smoke-free manufacturing facility in Batangas, Philippines. Vassilis Gkatzelis, PMI president for East and Southeast Asia, the Pacific, and global travel retail, said the investment will increase domestic production and export capacity, positioning the Philippines as a regional manufacturing and supply-chain hub. PMI said it has invested more than ₱125 billion ($2 billion) in the country since 2010, while its Philippine affiliate, PMFTC Inc., employs more than 5,000 people.

    PMI said approximately 200,000 Philippine adults use its IQOS ILUMA and ZYN products, compared with an estimated 14 million adult smokers in the country. Separately, PMI Vice President of Communications and Engagement Tommaso di Giovanni said the company is seeing growing demand for IQOS and ZYN but believes further consumer education and product availability are needed to accelerate adoption. PMI said its smoke-free products are now available in 110 markets and have more than 43 million adult users worldwide.

  • J.P. Morgan Resumes Coverage of Tobacco Companies

    J.P. Morgan Resumes Coverage of Tobacco Companies

    J.P. Morgan resumed coverage of British American Tobacco (BAT), Philip Morris International (PMI), and Imperial Brands, citing growth opportunities in the global tobacco and nicotine market. The bank assigned BAT an Overweight rating with a 5,300-pence price target, while giving PMI and Imperial Neutral ratings. It highlighted BAT’s market-share gains in U.S. nicotine pouches and vaping products, forecasting 3.9% comparable sales growth for the company in 2027.

  • PM Egypt Raises Prices for Second Time in 2026

    PM Egypt Raises Prices for Second Time in 2026

    Philip Morris Egypt increased prices across its cigarette and heated tobacco portfolios effective Nov. 5, marking its second price adjustment of 2026 following an increase in February. Under the new price list, Merit cigarettes cost EGP 121 ($2.30) per pack, Marlboro EGP 109 ($2.07), Marlboro Crafted EGP 79 ($1.50), and L&M EGP 88 ($1.67). Heated tobacco products are priced at EGP 88 for TEREA, EGP 93 ($1.77) for TEREA Capsules, and EGP 69 ($1.31) for HEETS. The company said prices are displayed through QR codes on product packaging and urged retailers and distributors to comply with the updated list.

  • Maryland Court Rules Tobacco Companies Can’t Offset Litter Lawsuit

    Maryland Court Rules Tobacco Companies Can’t Offset Litter Lawsuit

    The Circuit Court for Baltimore City ruled that tobacco companies cannot deduct potential damages from Baltimore City’s lawsuit over environmental harm caused by discarded cigarette filters from their annual payments to Maryland under the 1998 Master Settlement Agreement (MSA). The ruling followed a motion for summary judgment filed by Maryland Attorney General Anthony Brown’s office, which intervened to protect the state’s settlement payments. The court found that the MSA does not cover Baltimore’s environmental claims. The companies, including Philip Morris USA and R.J. Reynolds Tobacco Co., are therefore not entitled to offset any damages awarded to the city against payments owed to Maryland.

    The decision allows Baltimore City’s lawsuit to proceed. It protects the state’s annual MSA payments, which help fund health care for people with smoking-related diseases and other public health programs. According to Brown’s office, the ruling is the first in the nation to address whether the MSA covers local government claims against tobacco companies for environmental damage caused by their products.

  • Dutch Anti-Smoking Groups Preparing Complaint Against Philip Morris

    Dutch Anti-Smoking Groups Preparing Complaint Against Philip Morris

    Dutch pulmonologist Wanda de Kanter and the Foundation for Youth Smoking Prevention (Stichting Rookpreventie Jeugd) are reportedly preparing a criminal complaint against Philip Morris International, alleging the company misleads consumers about the health risks of its heated tobacco products and violates restrictions on nicotine advertising. The complaint, being prepared with attorney Bénédicte Ficq, is expected to be filed within two weeks, with support from the Dutch cancer society KWF Kankerbestrijding and the lung health organization Longfonds.

    The foundation argues that Philip Morris presents heated tobacco as less harmful than conventional cigarettes, despite the Netherlands’ National Institute for Public Health and the Environment (RIVM) saying that heated tobacco products remain harmful and are not a safe alternative to smoking.

    The complaint follows an unsuccessful 2016 criminal case brought by Ficq on behalf of De Kanter’s organization against Philip Morris and other tobacco manufacturers. Prosecutors declined to pursue that case, concluding that the allegations did not constitute a criminal matter and that tobacco regulation was a matter for lawmakers. Ficq argues that existing prohibitions on tobacco advertising and misleading consumers provide grounds for prosecution in the new case.

  • Philip Morris T&T Warns Vaping Duty Could Fuel Illicit Trade

    Philip Morris T&T Warns Vaping Duty Could Fuel Illicit Trade

    Philip Morris T&T Ltd. has warned that Trinidad and Tobago’s proposed 20% customs duty on vaping devices and e-liquids could increase illicit trade. The measure was announced by Finance Minister Davendranath Tancoo in his Oct. 12 budget presentation and is scheduled to take effect Jan. 1, 2027. The government also plans to prohibit vaping in public places and the sale of vaping products to people under 21.

    Marisa Bernard, corporate affairs manager for Caricom at Philip Morris T&T, said the company supports stronger measures to prevent underage access, including raising the minimum legal age for tobacco and vaping-related purchases to 21. She said the company is still assessing the proposed duty’s commercial impact and called for tax policy to balance revenue objectives, public health goals, and efforts to curb illegal trade.

  • PMI Reports Higher Third-Quarter Revenue

    PMI Reports Higher Third-Quarter Revenue

    Philip Morris International reported third-quarter 2026 net revenue of $11.4 billion, up 5.5% from a year earlier, while operating income increased 14.1% to $4.9 billion. Adjusted diluted earnings per share rose 5.4% to $2.36. Shipment volume increased 0.6% to 206.2 billion cigarette-equivalent units, including 2.7% growth in smoke-free products. Smoke-free products accounted for more than 40% of quarterly revenue.

    IQOS heated-tobacco unit shipments rose 1.5% to 41.5 billion, while VEEV e-vapor shipments increased 61.6%. In the United States, ZYN nicotine pouch shipments grew 4.2% to 3.2 billion pouches. PMI raised its regular quarterly dividend 8.8% to $1.60 per share and updated its 2026 adjusted diluted earnings-per-share forecast to $8.29 to $8.44, excluding currency effects.

    Following PMI’s third-quarter results, Reuters reported that the company faces rising cost pressures from the war in the Middle East, including energy-related inflation expected to worsen in the fourth quarter. Strikes in Ukraine have also disrupted operations, and PMI expects the effects to continue weighing on operating income this year. The company said the broader effects on consumers and global costs remain difficult to assess, although the situation is currently manageable.

    Reuters also highlighted slower ZYN growth amid competition from British American Tobacco’s Velo. PMI plans to increase investment in ZYN and transition most of its U.S. nicotine pouch portfolio from 15-pouch to 20-pouch cans. Reuters reported that PMI shares fell 3% in premarket trading following the results.

  • Nelt Group and PMI Renew Serbian Distribution Agreement

    Nelt Group and PMI Renew Serbian Distribution Agreement

    Nelt Group and Philip Morris International signed a new five-year distribution agreement for Serbia, extending a partnership that began in 2014. The agreement covers distribution operations in the Serbian market. Nenad Miščević, Nelt Group’s vice president for the Serbian market, said the renewed agreement continues the companies’ cooperation.

  • PMI Study Puts EU Economic Contribution at €343 Billion From 2021 to 2025

    PMI Study Puts EU Economic Contribution at €343 Billion From 2021 to 2025

    Philip Morris International (PMI) contributed nearly €343 billion to the European Union economy from 2021 through 2025, including €22.3 billion in spending with European suppliers, €27.4 billion invested across its European operations, and €39.5 billion in exports, according to an economic footprint study prepared by EY-Parthenon and released Oct. 15. The study also found that PMI’s European value chain supported nearly 164,000 jobs in 2025, including about 22,500 direct jobs, and that the company invested €422 million in research and development in Europe. PMI reported an additional approximately €2.2 billion in R&D activities in Switzerland.

    PMI said the figures reflect its manufacturing, supply-chain, research, and commercial activities across the region. The company reported that more than half of its net revenues in Europe came from smoke-free products in the fourth quarter of 2025. Since 2008, PMI has invested more than $16 billion globally in developing, scientifically assessing, and commercializing smoke-free products, including heated-tobacco devices, nicotine pouches, and e-vapor products.

    The report is the second edition of PMI’s EU Economic Footprint Study and covers the period from 2021 to 2025. PMI Europe President Marco Hannapel said the company’s investments and industrial operations contribute to the region’s economic activity and called for regulatory frameworks that support investment and innovation. The full EU Economic Footprint Study is available from PMI.