PMI Reports One-Fifth Revenue Growth in Q2
Philip Morris International announced its results for the second quarter of 2023. Reported net revenue increased by 19%, while adjusted net revenue growth is expected to reach 11.1% including Swedish Match. Net revenue from traditional tobacco rose 6%, wi
Philip Morris International reported its Q2 2023 results.
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Net revenue increased by 19%, with an adjusted net revenue growth rate (including Swedish Match) expected at 11.1%. Traditional tobacco net revenue grew by 6%; driven by pricing over 9%, it increased by 7.4%.<\/span><\/div>
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The market share of heated non-combustible tobacco (HNB) in the IQOS market rose by 1.6 percentage points to 9.2%. Adjusted HNB market volume (excluding the estimated net favorable impact of dealer and wholesaler inventory changes) is estimated to have grown by 16%.<\/span><\/div>
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As of the end of the quarter, the total number of IQOS users is estimated to be around 27.2 million (an increase of 1.4 million since March 2023), of which about 19.4 million have switched to IQOS and quit smoking.<\/span><\/div>
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ZYN nicotine pouches shipped 89.9 million cans in the U.S., a 53.1% increase compared to 58.7 million cans shipped by Swedish Match in Q2 2022.<\/span><\/div>
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CEO Jacek Olczak stated in a statement: “Our business momentum is strong, and the second quarter performed exceptionally well.” “Total shipments of cigarettes and HNB grew by 3.3%, supporting net revenue and double-digit growth in currency-neutral adjusted diluted earnings per share.<\/span><\/div>
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“Driven by Zyn's growth in the U.S., the strong performance of Swedish Match is accelerating our smoke-free transformation and complements IQOS, enhancing our smoke-free leadership while also providing resilient combustible performance through pricing increases.<\/span><\/div>
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“As we enter the second half of the year, particularly with some inflation and operational pressures easing, our strong fundamentals give us further confidence. Therefore, we are raising our full-year 2023 organic net revenue growth forecast to 7.5% to 8.5%, and currency-neutral adjusted diluted earnings per share growth to 8% to 9.5%.<\/span><\/div>
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“In the long term, we are supplementing our smoke-free transformation through further development of our health and healthcare business. Although we initially faced some resistance, we remain committed to health and healthcare and have developed focused strategies targeting several attractive growth opportunities.”<\/span><\/div>
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