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Tag: Philip Morris

  • PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    PMI Reports $40B in Revenue, Including 42% from Smoke-Free Products

    Philip Morris International reported strong 2025 fourth-quarter and full-year results, driven largely by the continued expansion of its smoke-free product portfolio. The company recorded more than $40 billion in annual net revenues, including nearly $17 billion from smoke-free products, which accounted for 41.5% of total net revenues. Smoke-free shipment volumes rose 12.8% for the year, with PMI’s products now available in 106 markets and used by an estimated 43 million adult consumers. IQOS maintained a dominant position in heat-not-burn, holding about 76% global category share, while nicotine pouch brand Zyn continued rapid growth, particularly in the U.S., where shipment volumes reached 794 million cans for the year.

    PMI’s combustible business remained stable despite expected volume declines, supported by pricing strength and productivity improvements. Marlboro reached a record 11% global category share, while total company shipment volumes remained flat as growth in smoke-free products offset cigarette declines. The company also reported strong performance across multiple regions, including double-digit heated tobacco growth in Europe and sustained category leadership in Japan, where heat-not-burn products now exceed 50% of total nicotine offtake in several major markets.

    Looking ahead, PMI expects continued momentum, forecasting 2026 adjusted diluted EPS growth of 7.5% to 9.5% excluding currency effects. The company also introduced 2026–2028 targets calling for 6% to 8% organic net revenue growth and 9% to 11% adjusted EPS growth, driven primarily by high single-digit to low-teens expansion in smoke-free product volumes.

    In response to the financials, Morgan Stanley said it expects a modest negative market reaction to PMI’s fourth-quarter results and forward guidance, which were largely in line with expectations following the stock’s strong rally since December.

    “On balance, 4Q results were broadly in line, and guidance looks reasonable, but is unlikely to settle the debate around the stock,” Morgan Stanley wrote. “Bears continue to point to a 2H-weighted year with headwinds from IQOS competition and excise tax increases in Japan, the flavor ban in Poland, and continued competition in U.S. nicotine pouches. Bulls point to PM delivering the best mid-term growth in large-cap CPG despite these known headwinds. We are [rating the stock] Overweight, and continue to expect growth to reaccelerate in 2H as these headwinds dissipate, and for US Zyn trends to improve with the likely FDA authorization of Zyn Ultra.”

  • Swedish Match Closing Richmond Office

    Swedish Match Closing Richmond Office

    According to a letter to the Commonwealth of Virginia, Swedish Match will be closing its Richmond office April 17, offering the majority of employees the opportunity to relocate to a location aligned with their role and function. Virginia Business magazine reported yesterday (Feb. 2) that Thomas G. Hayes, president of Swedish Match North America, sent a letter last week notifying Virginia Works of the imminent closure as part of a larger restructuring by its parent company, Philip Morris International. 

    In November 2025, PMI announced plans to restructure in 2026, dividing into two main business units, PMI International and PMI U.S.—along with Aspeya, its wellness business—as it continues to expand its smoke-free portfolio. In a statement, PMI said the Richmond closing is related to changes in its U.S. geographical footprint.

     “This decision was not made lightly, and we recognize the impact it will have on our employees and the local community,” the company said. “Centralizing key capabilities and functions in strategic location hubs will help us operate with greater speed, agility, and consumer focus—driving momentum behind our category-redefining brands, ZYN and IQOS as we work to accomplish a smoke-free America.”

    Headquartered in Stockholm, Swedish Match AB employs about 1,300 people in the United States. “According to Hayes’ letter, employees of PMI subsidiaries and affiliates Triaga Retail, PMI Global Services Unit, Swedish Match Cigars, Swedish Match North America, and Pinkerton Tobacco Co. are impacted,” Virginia Business reported.

  • PM India Fighting Illicit Trade with Intelligence

    PM India Fighting Illicit Trade with Intelligence

    Illicit cigarettes are not a new problem in India, but they are one that continues to grow, Navaneel Kar, managing director of Philip Morris India, told Statesman News Service. According to Euromonitor International, India is now the fourth-largest market for illegal cigarette consumption in the world after China, Brazil, and Pakistan. To get an idea of how big the problem is, Kar said PM India carried out a large intelligence-gathering exercise in 2025 that covered more than 3,000 shops across 10 states. By also engaging with more than 50 government stakeholders, the goal was not just observation but building reliable intelligence that could, in turn, support enforcement agencies and policy discussions.

    Public reports indicate enforcement agencies seized smuggled cigarettes worth about ₹600 crore ($7 billion) in FY25, with data from the Directorate of Revenue Intelligence showing the North-East as the largest hub for seizures, followed by Maharashtra–Goa, Tamil Nadu, and West Bengal.

    PM India said it is supporting the government’s rollout of a Track & Trace system for tobacco products, drawing on global experience from markets where digital tagging of cigarette packs is used to improve supply-chain visibility and curb illegal trade. The company also “supported capacity-building efforts for over 145 officers from customs and tax departments,” according to Stateman News Service.

  • FDA Posts New Materials in Zyn MRTP Applications

    FDA Posts New Materials in Zyn MRTP Applications

    The FDA posted new materials today (Feb. 2) related to the modified risk tobacco product (MRTP) applications submitted by Swedish Match USA, Inc. for 20 Zyn nicotine pouch products. The documents are available on the Swedish Match USA, Inc. MRTP application webpage. This is the final set of application materials.

    Accordingly, FDA is establishing the closing date for the public comment period on these MRTP applications. Public comments must be submitted to Docket Number FDA-2025-N-0835-0001 by 11:59 p.m. ET on March 4 to be considered. 

    Read the application materials here.

  • Philip Morris Egypt Updates Prices

    Philip Morris Egypt Updates Prices

    Philip Morris Egypt announced updated prices for its cigarette and heated tobacco products effective today (Feb. 2), saying some products increased compared with July 2025 prices, while others remained unchanged. Merit is now priced at EGP 111 ($2.33) per pack, Marlboro at EGP 102 ($2.14), L&M and TEREA at EGP 82 ($1.72), and HEETS holding at EGP 69 ($1.45). Philip Morris Egypt said the prices can be verified through QR codes on packaging and urged retailers to comply with the official list, marking the company’s first price adjustment of 2026.

  • PMI to Host Q4 and FY25 Webcast February 6

    PMI to Host Q4 and FY25 Webcast February 6

    Philip Morris International said it will host a live audio webcast on February 6 at 9 a.m. ET to discuss its fourth-quarter and full-year 2025 financial results, which are scheduled to be released two hours prior. The listen-only webcast will be hosted by Group CEO Jacek Olczak and CFO Emmanuel Babeau and will include a presentation of results followed by a Q&A session with investors. A recording, slides, and transcript will be available after the event for one year, and the webcast can also be accessed through PMI’s Investor Relations mobile app.

  • PM Exec Urges Malaysia to Follow Japan’s Lead

    PM Exec Urges Malaysia to Follow Japan’s Lead

    A Philip Morris executive is urging Malaysia to adopt a harm-reduction approach to nicotine policy rather than banning vapes and e-cigarettes, citing Japan as a model. Naeem Shahab Khan, managing director of Philip Morris Malaysia and Singapore, called Japan’s framework a “pragmatic harm-reduction pathway,” noting the country legally allows heated tobacco products and applies product-specific tax rates. He said Japanese data show cigarette sales fell by about 52% from 2011 to 2023 as smokers shifted to alternatives, arguing that adult nicotine users should have “an equal opportunity to know what is less risky.” Khan warned that “unrealistic” bans could fuel illicit markets, adding that illegal cigarettes already account for about 55% of Malaysia’s sales.

  • PMI Positive After FDA’s Zyn Hearing

    PMI Positive After FDA’s Zyn Hearing

    Philip Morris International (PMI) believes it moved a step closer to securing permission to market its Zyn nicotine pouches as a reduced-risk alternative to cigarettes in the United States, following a full-day public hearing convened by the U.S. Food and Drug Administration (FDA) yesterday (January 22). At the meeting, PMI scientists presented evidence to the FDA’s Tobacco Products Scientific Advisory Committee (TPSAC) in support of a Modified Risk Tobacco Product (MRTP) application that would allow the company to tell adult smokers that switching completely to Zyn lowers the risk of major smoking-related diseases. FDA briefing materials and staff presentations suggested regulators are leaning toward approving the proposed claim, with the agency stating that “the evidence suggests the proposed modified risk claim is scientifically accurate.”

    “The FDA’s Center for Tobacco Product’s mission is to make smoking-related disease and death a part of America’s past,” said Keagan Lenihan, Chief External Affairs Officer for PMI U.S. “Smoke-free products, like Zyn, play a critical role in helping CTP achieve this mission and provide adults who smoke with important information to guide their choices and a real opportunity to change.”

    The proposed language would allow PMI to say that using Zyn instead of cigarettes reduces the risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis. FDA scientists said the “totality of the evidence” shows Zyn contains substantially lower levels of harmful chemicals than cigarettes, and that consumer research suggests the claim increases awareness of reduced risks without misleading users into believing the product is risk-free. The agency also noted that youth nicotine pouch use remains relatively low, at 2.4% of U.S. high school students in 2024, and that exposure to the proposed claim did not increase young adults’ intentions to use Zyn. PMI executives argued that clearer communication of relative risk could help smokers move away from combustible products, drawing comparisons to Swedish snus, which received an MRTP designation in 2019 and has been linked to Sweden’s low smoking rates.

    However, members of the independent TPSAC panel raised concerns about gaps in long-term data and whether reduced-risk marketing would meaningfully accelerate smoking cessation in the U.S. Public health advocates also warned about the potential appeal of flavored pouches, discreet use, and social-media promotion to underage users. While panelists generally agreed that Zyn is far less harmful than cigarettes, they questioned whether the evidence shows that marketing claims will drive widespread switching. The FDA is not bound by the panel’s non-binding recommendations and has not set a deadline for its final decision, which will determine whether PMI can formally promote Zyn as a reduced-risk product to adult smokers.

    “While the relatively expedited timeline for this MRTP review is encouraging, the fact that the TPSAC did not vote on a recommendation makes me question the reason for these meetings moving forward,” said Laura Leigh Oyler, VP of Regulatory Affairs for Haypp Group, whose subsidiaries sell nicotine pouches online. “The science, and the many public speakers who supported the authorization were clear: Americans deserve honest messaging around these products and their impacts on harm reduction.”

  • PMI Releases White Paper on Human Cognition in the AI Age

    PMI Releases White Paper on Human Cognition in the AI Age

    Philip Morris International Inc. released a white paper titled “Human Cognition: The Next Frontier?”, inviting leaders from business, policy, and academia to engage in a global conversation on the role of human cognition as AI transforms work, society, and the economy. The paper argues that skills like critical thinking, creativity, and adaptability will become the “superskills” of the future, essential for organizations navigating an era of human/machine collaboration. As AI increasingly automates routine and cognitive tasks, PMI emphasized that nurturing human cognition is critical for resilience, innovation, and decision-making.

    “Technology helps us move faster—but real progress depends on people,” said Moira Gilchrist, PMI’s Chief Global Communications Officer. “Change isn’t just about scientific and technological advances; it’s about vision, ambition, and how people apply innovations.” The paper identifies key cognitive risks posed by AI, including cognitive atrophy from over-reliance on AI for ideation and analysis, attention erosion due to digital distractions, an emerging cognitive divide, and trust challenges from synthetic media and deepfakes. PMI highlights the importance of protecting and strengthening human cognition to ensure society benefits from AI rather than being overwhelmed by it.

    PMI said the white paper underscores its commitment to continuous learning, workforce development, and dialogue on the societal implications of AI, as it aims to become predominantly smoke-free by 2030.

  • Barnes Named First Female GM of PMSA

    Barnes Named First Female GM of PMSA

    Philip Morris International appointed Buena Barnes as general manager of Philip Morris South Africa (PMSA), replacing Branislav Bibic, who is now the area vice president for Sub-Saharan Africa. Barnes, who is the first woman to hold the position, previously served as finance director for Sub-Saharan Africa and brings more than four years of local leadership experience as PMI continues its shift toward smoke-free products.

    Barnes played a key role in PMI’s transformation strategy, which has seen smoke-free products account for 41% of the company’s net revenues by Q3 2025, with PMI targeting more than 50% by year-end. Her background includes senior finance and strategy roles at GlaxoSmithKline South Africa and British American Tobacco South Africa. She has been a vocal supporter of PMI’s science-led alternatives, including IQOS, introduced in South Africa in 2017, followed by ZYN nicotine pouches in 2023 and VEEV e-vapor in 2025.