Shares of Philip Morris Worldwide Inc. (NYSE: PM) gained over 2% on Wednesday, after the corporate delivered stable outcomes for Q1 2025 and raised its outlook for the complete 12 months. The strong quarterly efficiency was pushed by robust momentum in the smoke-free business, fueled by ZYN and IQOS.
Higher-than-expected outcomes
Philip Morris’ internet revenues elevated 5.8% to $9.3 billion in the primary quarter of 2025 in comparison with the identical interval a 12 months in the past. Natural income progress was 10.2%. Reported earnings per share grew 24.6% year-over-year to $1.72 whereas adjusted EPS rose 12.7% to $1.69. Each the highest and backside line numbers beat expectations.
Stellar smoke-free efficiency
PM’s smoke-free business delivered a stable efficiency in Q1 2025, with a 15% progress in revenues and a 27.7% rise in gross revenue. Cargo volumes have been up 14.4%. This section now accounts for 42% of whole revenues and 44% of whole gross revenue. The corporate’s smoke-free merchandise can be found in 95 markets and it has expanded its multi-category smoke-free portfolio to 46 markets.
The smoke-free momentum was pushed by progress in ZYN and IQOS. ZYN nicotine pouches noticed shipments in the US improve by 53% to 202 million cans. Outdoors the US, nicotine pouch quantity in cans additionally grew 53%. Throughout the quarter, shipments virtually trebled outdoors the Nordics and the product is gaining traction in markets like Austria and Switzerland.
IQOS heated tobacco models (HTU) adjusted in-market gross sales (IMS) quantity grew 9.4% in Q1, with robust efficiency in Japan and Europe. The corporate expects double-digit progress for the rest of the 12 months.
Resilience in combustibles
Revenues in the combustibles section remained flat YoY in Q1 2025 however rose 3.8% on an natural foundation, helped by quantity progress and robust pricing, partly offset by adverse geographic combine. Gross revenue grew 2% on a reported foundation and 5.3% organically. Cigarette volumes have been constructive and the corporate continued to see progress in markets the place smoke-free merchandise aren’t permitted. Marlboro continued to realize market share in the quarter and PM’s general cigarette class share elevated to 24.8%.
Raised revenue outlook
Philip Morris raised its earnings outlook for the complete 12 months of 2025 and now expects reported EPS to vary between $7.01-7.14 and adjusted EPS to vary between $7.36-7.49. It continues to count on natural income progress of 6-8% for the 12 months.
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