Philip Morris said smoke-free business accounted for 41% of total net revenues in the second quarter, while there was resilient demand for combustibles.
Philip Morris (PM) CEO Jacek Olczak said on Tuesday that the company has experienced strong momentum across its diversified smoke-free portfolio, primarily driven by increased IQOS sales growth and off-take growth for ZYN in the U.S.
The retail user message count on Philip Morris jumped over 1000% in the last 24 hours on Stocktwits, with retail sentiment on the stock improving to ‘extremely bullish’ from ‘neutral’ a day ago amid ‘high’ levels of chatter.
The Marlboro maker said smoke-free business accounted for 41% of total net revenues in the second quarter (Q2).
Philip Morris shares were down nearly 6% in premarket trading after the company slightly missed quarterly revenue expectations.
Shipment volume for cigarettes fell 1.5% in the quarter, but Olczak added that the steady growth in the smoke-free category, coupled with the resilience of combustibles, helped the company raise its annual profit forecast.
Philip Morris now expects full-year 2025 adjusted profit to be between $7.43 and $7.56 per share, compared with the previous expectation of $7.36 to $7.49.
The company reported that shipment volume for oral smoke-free products increased by 23.8% in pouches or pouch equivalents, driven by nicotine pouches, which more than doubled outside the U.S. and the Nordics, and in the U.S. , grew by over 40% to 190 million cans.
Philip Morris’ Q2 revenue jumped 7.1% to $10.14 billion, compared with Wall Street expectations of $10.33 billion, according to data compiled by Fiscal AI.
The company’s adjusted profit came in at $1.91 per share, beating estimates of $1.86.
Philip Morris stock has gained nearly 50% year-to-date and has increased by 65% over the last 12 months.
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