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Tag: Philip Morris

  • PMI Exec Sees Strong Potential for Smoke-Free Products in Philippines

    PMI Exec Sees Strong Potential for Smoke-Free Products in Philippines

    A top executive of Philip Morris International (PMI) expressed optimism about the growth of smoke-free alternatives in the Philippines, saying the company sees strong potential despite being in the early stages of its market rollout.

    “In the Philippines, we are still at the very early stages, but we have a lot of confidence in smoke-free products,” said Stefano Volpetti, president of the smoke-free products category and chief consumer officer at PMI.

     Volpetti said progress in Metro Manila is already showing promise, drawing parallels with the company’s initial launches in other countries. He said PMI is committed to making smoke-free alternatives accessible to Filipino smokers, particularly through education and proper explanation of the products.

    “If you think about it, when we started in Italy and in Japan, we started from Milan and Nagoya,” Volpetti said. “We are starting the same journey in the Philippines, starting from Metro Manila. It is clear that when those smoke-free alternatives are well explained to Filipino smokers, there is clearly attraction to move from traditional cigarettes.

    “But we are very confident, because this is a journey that we have done in more than 90 countries around the world. We know the recipe of this journey and the progress in Metro Manila is very powerful.”

    At present, PMI’s smoke-free offerings in the Philippines include IQOS devices, HEETS and TEREA sticks, the more affordable BONDS device, BLENDS consumables and the ZYN oral nicotine product. When asked about the affordability of smoke-free products for Filipinos, Volpetti acknowledged the economic barriers but said PMI is working to provide more options.

    “In general, we have two important aspects of this journey,” he said. “The first aspect is to be sure that smokers understand the benefits of smoke-free alternatives. Because if you don’t understand the benefits, if the benefits are not explained to you, it is very difficult to be able to appreciate that. 

    “We are able to design the consumables in a way that is more in tune with the experience of different consumers around the world. [What the consumers around] the world wants in terms of taste, flavor, in terms of pleasure, but also in terms of the budget they are ready to pay. In the coming future, you will see a portfolio that is more balanced between the premium segment and the medium segment. Our mission is to provide choices across all consumer categories.”

  • IQOS System Commercially Available in Texas

    IQOS System Commercially Available in Texas

    Today, PMI U.S. announced its FDA-authorized IQOS system is now commercially available to residents in the Greater Austin, Texas, area online at www.IQOS.com/us, at select pop-up stores, and other 21+ venues. IQOS is available in more than 70 markets globally since launching in Japan 10 years ago. The launch in Texas marks the first in a series of introductions in markets across the U.S.

    “We’ve seen the impact that a diverse range of smoke-free alternatives—like IQOS and ZYN—can have in helping adults 21+ move away from cigarettes,” said Stacey Kennedy, PMI U.S. CEO. ”We are committed to raising awareness and educating both consumers and public health leaders about the progress being made in harm reduction with our smoke-free products.”

    The news that Austinite’s can now purchase IQOS onlinefollows the March announcement that a permanent IQOS store opened downtown. Since October 2024, more than 5,000 Austin residents signed up to “Be the First” to experience IQOS.

  • PMI Hosting Annual Meeting Webcast May 7

    PMI Hosting Annual Meeting Webcast May 7

    Philip Morris International Inc. announced it will host a live audio webcast of its 2025 Annual Meeting of Shareholders on Wednesday, May 7, 2025, at 9 a.m. EST. The meeting will be in a virtual format and can be accessed at www.virtualshareholdermeeting.com/PM2025. Presentation slides, script, and an archived recording of the webcast will be available at the same link. The recording will be available for one year from the date of the meeting.

    During the meeting, André Calantzopoulos, Chairman of the Board, and Jacek Olczak, Chief Executive Officer, will address shareholders and answer questions. Only shareholders of record with a valid 16-digit control number will be allowed to ask a question or make a comment.

    The audio webcast may also be accessed on mobile devices by downloading PMI’s free Investor Relations App at www.pmi.com/irapp.

  • PMI CEO Calls for Common-Sense Regulations

    PMI CEO Calls for Common-Sense Regulations

    Jacek Olczak, Chief Executive Officer of Philip Morris International Inc., outlined the need for common-sense regulations in the consumer goods sector while addressing global leaders at Semafor’s annual World Economy Summit in Washington, D.C., on April 25, 2025. Olczak emphasized the sector’s potential for innovation-led growth despite the volatile economic environment. He stressed, however, that without appropriate regulation and policy frameworks to enable scientific evaluation and consumer access, promising breakthroughs—such as innovations in wellness, food, and personal care products—could become missed opportunities.

    “Disparities in nicotine regulation are creating a global divide with profound health and economic impacts,” Olczak said. “Some countries that have prohibited smoke-free products are seeing higher smoking rates persist, while many of those whose policies encourage smokers to make better choices are advancing away from cigarettes more quickly. As a result, we are already starting to see nations where smoking has significantly declined while others unnecessarily continue to experience smoking rates of 20%, 30% or higher.”

    According to PMI, more than 190 million smokers in more than 20 markets—nearly 20% of smokers globally—have no legal access to smoke-free products, while cigarettes—the most harmful way to consume nicotine—are available on the market. This stagnation persists despite the introduction of advertising bans, high excise taxes, plain packaging, and a complete flavor ban on cigarettes.

    “Innovation needs to be accessible and impactful,” Olczak said. “At PMI, we have invested heavily, innovated continually, and transformed our business model to replace cigarettes with better, smoke-free alternatives, which as of Q1 2025 represent 42% of our global net revenues—up from zero a decade ago. It is imperative that countries worldwide adopt policy frameworks that keep pace with these innovations to deliver on the promise of progress.”

  • PMI Halts U.S. Cigar Sale

    PMI Halts U.S. Cigar Sale

    Bloomberg reported that yesterday Philip Morris International Inc. called off the sale of its $1 billion US cigar business, citing the “current environment” in the latest deal to go awry amid market turmoil.

    PMI said following a thorough review and after taking into account the current environment, it will not shed the cigar unit it acquired as part of its $16 billion purchase of rival Swedish Match. It has previously said it wanted to dispose of US cigars as it continues to pin its future on a shift toward smoke-free alternatives to traditional tobacco products.

    The company said strong sales of Zyn nicotine pouches — also acquired from Swedish Match — were driving performance as it boosted adjusted earnings per share guidance this year to as much as $7.49, compared with a previous targeted high of $7.17.

    The smoke-free business includes Zyn and IQOS heated tobacco sticks and accounted for 42% of the first-quarter total net revenue. Philip Morris wants to generate more than two-thirds of its sales from alternative products by 2030.

  • PMI Surpasses Estimates for Fourth Straight Quarter

    PMI Surpasses Estimates for Fourth Straight Quarter

    Today (April 23), Philip Morris International announced first-quarter earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.61 per share. This is a 12.7% increase, and compares to earnings of $1.50 per share a year ago. These figures are adjusted for non-recurring items, and mark the fourth straight quarter the company has surpassed consensus EPS estimates.

    PMI posted revenue of $9.3 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.97%.

    “We achieved exceptionally strong performance in the first quarter, with continued volume growth supporting an excellent top-line performance and very strong margin expansion,” said Jacek Olczak, Chief Executive Officer. “Our smoke-free business goes from strength to strength, delivering organic growth of over 20% in net revenues and over 33% in gross profit.

    “We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment, and now forecast double-digit adjusted diluted EPS growth in dollar terms for the full year.”

    PMI’s smoke-free business saw a 14.4% increase in shipment volumes, and now accounts for 42% of its total net revenues and 44% of its total gross profit.

  • Federal Judge Allows Zyn Lawsuit to Progress

    Federal Judge Allows Zyn Lawsuit to Progress

    A federal judge in Florida allowed key claims to move forward in two consumer class action lawsuits against Philip Morris and its subsidiary, Swedish Match, over allegations that their Zyn nicotine pouches cause ongoing health issues and are deceptively marketed, especially to young people.

    In March, U.S. District Judge William P. Dimitrouleas partially granted the defendants’ motion to dismiss, tossing a single claim of fraudulent concealment for lacking sufficient detail and a clear connection between the alleged misrepresentation and the plaintiffs’ injuries. However, the claims were reportedly dismissed without prejudice, giving the plaintiffs an opportunity to amend their complaints. The court upheld the bulk of the plaintiffs’ claims, including those for design defects, failure to warn, and negligence. The judge also rejected Philip Morris’ efforts to dismiss the lawsuits for lack of jurisdiction, finding that the companies’ business activities in Florida, including marketing and selling Zyn, provided sufficient basis for the federal court to hear the case.

    Plaintiffs in the Zyn lawsuits allege Philip Morris and Swedish Match falsely maintain Zyn is a smokeless nicotine replacement therapy from cigarettes or e-cigarettes, despite the nicotine concentration levels in Zyn exceeding the levels found in nicotine replacement therapies. Philip Morris said it is reviewing the ruling and intends to “vigorously defend” itself against the remaining claims.

  • PMI Outlines Smoke-Free Progress in Annual Report

    PMI Outlines Smoke-Free Progress in Annual Report

    Philip Morris International today (April 3) published its sixth annual Integrated Report, marking the company’s 10th year of business transformation and sustainability disclosures. The document details PMI’s continued progress in delivering long-term value to shareholders and other stakeholders while advancing its purpose of having its smoke-free alternatives make cigarettes obsolete as soon as possible.

    “Our 2024 Integrated Report celebrates a milestone year that marked the 10thanniversary of the commercialization of IQOS, VEEV, and ZYN and our journey toward achieving one of the most ambitious business transformations in modern history,” said Jacek Olczak, Chief Executive Officer of PMI. “By the end of 2024, our efforts to expand access to smoke-free products allowed us to reach an estimated 38.6 million adult users, with the products available in 95 markets, demonstrating our deep commitment to sustainability and business transformation. These achievements fill me with profound optimism as we continue to create long-term value while addressing our product and operational impacts, not only sustaining but accelerating our momentum, accomplishing a number of goals that only a few years ago seemed too ambitious.”

    The report describes the company’s strategy, business model, and both product-related and operational-related performances. The report explains the company’s performance and approach to sustainability in the context of a comprehensive five-pillar framework that includes compliance and risk mitigation as well as operational efficiency, innovation, and purposeful impact

    “The path to transformation is rarely linear, and our experience in 2024 reinforces a crucial truth: Achieving a smoke-free future requires collective effort beyond our direct control,” said Emmanuel Babeau, Chief Financial Officer of PMI. “Our smoke-free business accounted for approximately 39% of PMI’s total net revenues for the full year 2024, with an acceleration in top- and bottom-line growth. Competing in the cigarette market while simultaneously working to transform it is not a contradiction but a necessary phase in our journey. Our integrated approach—linking financial success with positive impact—positions us well to continue investing in the future. We remain confident that our financial strength, combined with our sustainability leadership, is the right path forward.”

    Performance Highlights:

    • Six markets where more than 75% of net revenues are generated are smoke-free
    • $14 billion cumulative investment behind smoke-free products since 2008
    • 99% of total shipment volume covered by youth access prevention programs in indirect retail channels
    • 0.01% prevalence of child labor among contracted farmers supplying tobacco to PMI
    • 10 human rights impact assessments completed since 2018 in highest-risk countries
    • 61% of PMI manufacturing facilities certified as carbon neutral
  • PMI Earns Real Estate Award for Colorado Zyn Project

    PMI Earns Real Estate Award for Colorado Zyn Project

    Philip Morris International’s (PMI) purchase and planned development of 150 acres of land in Aurora, Colorado, in July 2024 earned a 2025 CoStar Impact Award, as judged by real estate professionals familiar with the market. According to the seller, Opus Development Co., the site acquisition by PMI’s United States-based affiliate, Kairus, Inc., was one of the largest direct land sales to a user and set a record price per square foot based on land area. PMI plans to invest $600 million into building a manufacturing hub for Zyn nicotine pouches.

    “PMI and its U.S. affiliates are accelerating their mission to move adults who smoke away from cigarettes by investing in new manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives,” PMI Americas President and U.S. CEO Stacey Kennedy said in a statement unveiling the company’s development plans. “We believe Colorado is like-minded in its commitment to innovation, economic opportunity and public health, and we’re eager to work with the state and its talented workforce as we expand our U.S. manufacturing presence.”

    The project is expected to generate more than $1 billion in economic contributions for the Denver-area suburb by the time it is fully operational in 2026, and will host at least 500 full-time employees, and generate upward of $550 million annually in economic benefits statewide.

  • PMI Retains European Vape Patent

    PMI Retains European Vape Patent

    European patent officials tossed a challenge from a British American Tobacco subsidiary allowing Philip Morris to retain its patent for a type of power supply for electronic vapes.

    The patent from PMI primarily describes a power supply system for an e-vaping device, including a sensor and a sensor holder designed to regulate airflow and house a power source. Nicoventures claimed the patent was not new because it used similar features in three older patents for its “Vuse Solo.” The BAT side argued that there were several features in the older patents that effectively served as sensor holders similar to the PMI design.

    In a Feb. 20 decision that was published yesterday (March 5), the appellate board at the European Patent Office upheld an earlier decision dismissing Nicoventures’ opposition because Philip Morris’ power supply design contains a unique structure.

    “The board concurs with the respondent’s arguments [that] the structure of the e-vaping device in [the older inventions] and the patent are not identical,” the Technical Board of Appeal said.

    PMI further argued that Nicoventures failed to prove that Vuse Solo “was available to the public before it filed its own patent application, therefore Nicoventures cannot argue that its design is not new,” Law360 wrote.