Latest news with #ZYN
Business Insider
3 days ago
- Business
- Business Insider
Philip Morris (PM) Defies the Naysayers as Smoking Stays Hot in 2025
Imagine a tobacco stock surging 53% in six months—yet that's exactly what Philip Morris International (PM) has achieved, defying the usual stigma attached to sin stocks and a declining global smoker base. Unlike many of its peers, PM's story stands apart: its traditional cigarette business remains stable, heated tobacco products are experiencing rapid growth, and oral nicotine offerings are gaining momentum. Confident Investing Starts Here: Add a weak dollar boosting its predominantly international revenue, and it's clear PM's growth engine is running strong, justifying the rally and potentially signaling more upside ahead. PM's Combustible Division Remains Steady Cigarettes may seem like a dying product, but Philip Morris International's (PM) combustible division is proving otherwise. In Q1, cigarette shipment volumes rose 1.1% to 144.8 billion units, and organic revenue increased 4%, fueled by an 8.3% price hike. Marlboro's enduring brand strength, along with a 0.4% market share gain to 24.8% (excluding the U.S. and China), highlights PM's pricing power and market resilience. Strategic local manufacturing has also helped preserve margins amid rising raw material costs. The results speak for themselves: combustible gross profit rose 5.3% organically, even with some headwinds from a commercial model change in Indonesia. PM's ability to raise prices without sacrificing volume underscores the strength of its brand. While the global cigarette market is shrinking by roughly 2% annually, PM's smart execution keeps the segment profitable, helping fund its transition to next-generation nicotine products. IQOS Ignites Heated Tobacco Business Unit If combustibles are PM's foundation, IQOS is the growth engine. Heated tobacco unit (HTU) shipments surged 14.4% to 37.1 billion units last quarter, while global in-market sales rose 9.4%, including a 9.3% increase in Japan, where IQOS now holds a commanding 32.2% market share. Europe is also a key growth driver, with countries such as Hungary (41.9%) and Greece (34.4%) reporting impressive market penetration. Backed by $14 billion in R&D since 2008, IQOS now delivers higher margins than cigarettes, proving the investment is paying off. The strength lies in PM's efficient scale and relentless innovation. Its multi-category approach—bolstered by launches like IQOS ILUMA in Japan—continues to deepen consumer loyalty. Even amid challenges like the EU flavor ban in Italy, PM has offset losses with strong double-digit growth in Spain and Germany. With 38.6 million adult users globally, IQOS is far from niche—it's a global force driving PM's next phase of growth. ZYN's Meteoric Rise Opens Door to Oral Segment Then there's ZYN, Philip Morris's nicotine pouch brand, which is rapidly gaining traction in the U.S. ZYN shipments soared 53% to 202 million cans last quarter, prompting the company to raise its full-year guidance to 800–840 million cans. International markets also contributed, with 53% growth in countries such as Pakistan and the UK. Thanks to margins exceeding 70%—about five points higher than those of combustibles—ZYN played a key role in helping smoke-free products contribute 44% of the total gross profit. Smart moves, such as early capacity expansions in March, ensured that supply kept up with demand. But ZYN isn't just a U.S. story—it's a global growth play. With 182% volume growth in non-Nordic international markets, PM is leveraging its global distribution muscle and FDA clearances to accelerate expansion. The 27.2% volume growth in Q1 reflects PM's successful pivot toward discreet, high-margin alternatives that resonate with younger consumers and working professionals. It's a textbook example of how to spot and capitalize on shifting consumer preferences. Not Too Pricey for the Growth After an 80% rally, you might expect Philip Morris to be overvalued— but its forward P/E of 23, based on projected 2025 adjusted EPS of $7.36–$7.49, tells a more nuanced story. While that's not cheap for a tobacco stock, PM is far from typical. With 12–14% organic EPS growth forecasted for 2025—driven by 20.4% growth in smoke-free revenue and a weak dollar amplifying its 90%+ international earnings—this valuation appears well-supported. The weak dollar, in particular, is an underappreciated tailwind, boosting earnings in key international markets, such as Japan and Europe. Add to that $180 million in Q1 cost savings and a $2 billion efficiency target by 2026, and PM is positioned to continue expanding margins despite headwinds such as tax pressures in India. Altogether, this creates a strong case for PM to deliver 15%+ EPS growth annually in the coming years, making today's valuation look not just justified, but compelling. Is PM Stock a Buy or Sell? Wall Street remains highly bullish on Philip Morris, with a Strong Buy consensus based on eight Buy and one Hold rating over the past three months, and notably, no Sell ratings. However, PM's average 12-month stock price target of $188.67 suggests a meagre 3.3% upside over the coming year. PM Reinvents Itself as a Smoke-Free Growth Powerhouse Philip Morris is no longer your grandfather's tobacco company. Its recent surge reflects a bold transformation toward smoke-free alternatives, with ZYN and IQOS driving growth while traditional cigarettes continue to generate solid cash flow. A weak dollar is further boosting its international-heavy revenue base, and with 12–14% EPS growth projected, PM's momentum looks far from accidental—it's the mark of a company redefining its future. While its P/E of 23 isn't bargain-basement, it's a reasonable price for a business evolving into a modern, high-margin growth story. In my view, PM still appears to be an attractive option.
Yahoo
3 days ago
- Business
- Yahoo
Can Philip Morris Rely on Pricing to Drive 2025 EPS Growth?
Philip Morris International PM continues to lean on pricing as a key earnings driver. The company delivered a strong first quarter of 2025, with adjusted earnings per share (EPS) rising 12.7% year over year to $1.69. Pricing contributed 6 percentage points to organic revenue growth of 10.2%, supported by an 8.3% increase in combustible pricing and around 3% in smoke-free products, excluding devices. The company has raised its full-year EPS forecast to $7.36-$7.49. The question is whether pricing alone can sustain that pointed to continued pricing strength in markets like Turkey, Poland and Germany. However, it also noted that gross pricing and negative geographic mix are expected to moderate over the remainder of the year. In the smoke-free category, gross margins expanded 670 basis points to surpass 70%, now standing more than five points above combustibles at the current product and geographic mix. ZYN, a key contributor to smoke-free profit growth, saw shipment volumes rise 63% in the quarter, reinforcing the segment's scale and strategic so, Philip Morris delivered a 180-basis-point gross margin boost from pricing alone, reflecting the effectiveness of its pricing strategy. While pricing gains may be less pronounced in the second half, Philip Morris emphasized continued investments behind its smoke-free growth. With volume and mix improvements already visible in the first quarter, the company appears positioned to support earnings growth through a combination of pricing and product performance. Altria Group MO reported a 10.8% rise in net price realization for combustibles, which supported operating income growth despite steep volume declines. Yet, MO is facing consumer pressure, with many smokers trading down to discount brands, limiting pricing flexibility. In oral nicotine, Altria Group's on! posted 18% shipment growth alongside higher retail prices, but category competition and cost-conscious behavior remain visible Point Brands TPB saw explosive growth in its modern oral segment, with pouch sales increasing nearly tenfold year over year. However, this growth came with mix-driven margin pressure. Turning Point Brands' gross margin declined 220 basis points and it acknowledged the need for further investment to scale brands and improve profitability. With rising freight and tariff costs also in play, Turning Point Brands' pricing power remains limited without additional volume leverage. Shares of Philip Morris have gained 4.9% in the past month compared with the industry's growth of 5.1%. Image Source: Zacks Investment Research From a valuation standpoint, PM trades at a forward price-to-earnings ratio of 23.19X, up from the industry's average of 15.64X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for PM's 2025 earnings implies year-over-year growth of 13.7%, whereas its 2026 earnings estimate indicates a year-over-year uptick of 11.7%. Image Source: Zacks Investment Research PM stock currently holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO) : Free Stock Analysis Report Philip Morris International Inc. (PM) : Free Stock Analysis Report Turning Point Brands, Inc. (TPB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Philip Morris International (NYSE:PM) Declares US$1.35 Dividend; Appoints New U.S. Communications Officer
Philip Morris International recently announced a regular quarterly dividend of $1.35 per share and appointed Jody Sunna as the new U.S. Chief Communications Officer, reflecting the company's ongoing commitment to shareholder returns and strategic leadership. Over the last quarter, Philip Morris' stock price increased by 21%, a significant movement that may have been influenced by these affirmations coupled with the company's strong financial performance. During this period, the market faced volatility due to geopolitical tensions affecting broader indices, yet Philip Morris managed to post a positive return amidst these challenges, supporting the stock's resilience. We've spotted 2 warning signs for Philip Morris International you should be aware of. The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The recent boost in Philip Morris International's shares by 21% in the last quarter may reflect investor confidence, partially driven by the announcement of a US$1.35 dividend per share and key leadership appointments. Over a longer five-year period, the company's total return, including dividends, reached a notable 220.66%. This indicates strong returns for investors. In comparison to the one-year U.S. market return of 11.7%, Philip Morris outperformed significantly. However, when viewed against the U.S. Tobacco industry, which posted a 30.8% return, Philip Morris' performance was also strong but not as high as the industry's. This recent news could potentially impact revenue and earnings projections, especially considering the anticipated hurdles and opportunities linked to its smoke-free products like IQOS and ZYN. These developments underscore the importance of these product segments for future growth. Analysts have set a consensus price target of US$177.15 for the stock, slightly above the current share price of US$175.36. This suggests a moderate discount of around 3.77%. The market expectations reflected in these targets might adjust if Philip Morris continues to leverage its pricing strategy and operational efficiencies successfully. Investors should consider the possible variability due to regulatory and market conditions affecting smoke-free product growth. According our valuation report, there's an indication that Philip Morris International's share price might be on the expensive side. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:PM. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Philip Morris International Tech Ecosystem Company Profile 2025: Digital Transformation Strategies and Innovation Programs
Philip Morris International Inc., a leading tobacco company, is committed to becoming a 100% smoke-free entity. By March 2025, 42% of revenue was from smoke-free products like IQOS and ZYN. The firm is advancing digital transformation and tech initiatives to enhance health-focused and prescription products. Dublin, June 13, 2025 (GLOBE NEWSWIRE) -- The "Enterprise Tech Ecosystem Series: Philip Morris International Inc. - 2025" company profile has been added to offering. The report provides insights into the Philip Morris International's tech activities, including its digital transformation strategies, its innovation programs, and its technology initiatives. Philip Morris International Inc. (Philip Morris) is a US-based multinational tobacco company. It produces cigarettes and a variety of smoke-free products, including e-vapor, heated tobacco, and oral smokeless products. Philip Morris aims to become a 100% smoke-free products company in the near future. As of March 31, 2025, smoke-free products accounted for 42% of Philip Morris' overall revenue. The company is also focusing on developing and commercializing oral and inhaled consumer health & wellness products, as well as inhaled prescription products for cardiovascular emergencies and pain management. IQOS and ZYN are the leading smoke-free brands of the company, while Marlboro, Parliament, Chesterfield, L&M and Philip Morris are the leading cigarette report provides information and insights into Philip Morris' tech activities, including: Insights of its digital transformation strategies and innovation programs. Overview of technology initiatives covering partnerships and product launches. Insights on each technology initiative including technology theme, objective, and benefits. Details of estimated ICT budgets. Reasons to Buy Gain insights into Philip Morris' tech operations. Gain insights into its tech strategies and innovation initiatives. Gain insights into its technology themes under focus. Gain insights into various product launches and partnerships. Key Topics Covered: Overview Digital Transformation Strategy Accelerators, Incubators, and other Innovation Programs Technology Focus Technology Initiatives Venture Arm: PM Equity Partner Partnerships Network Map ICT Budget and Contracts Key Executives For more information about this company profile visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
Yahoo
13-06-2025
- Business
- Yahoo
Philip Morris International Tech Ecosystem Company Profile 2025: Digital Transformation Strategies and Innovation Programs
Philip Morris International Inc., a leading tobacco company, is committed to becoming a 100% smoke-free entity. By March 2025, 42% of revenue was from smoke-free products like IQOS and ZYN. The firm is advancing digital transformation and tech initiatives to enhance health-focused and prescription products. Dublin, June 13, 2025 (GLOBE NEWSWIRE) -- The "Enterprise Tech Ecosystem Series: Philip Morris International Inc. - 2025" company profile has been added to offering. The report provides insights into the Philip Morris International's tech activities, including its digital transformation strategies, its innovation programs, and its technology initiatives. Philip Morris International Inc. (Philip Morris) is a US-based multinational tobacco company. It produces cigarettes and a variety of smoke-free products, including e-vapor, heated tobacco, and oral smokeless products. Philip Morris aims to become a 100% smoke-free products company in the near future. As of March 31, 2025, smoke-free products accounted for 42% of Philip Morris' overall revenue. The company is also focusing on developing and commercializing oral and inhaled consumer health & wellness products, as well as inhaled prescription products for cardiovascular emergencies and pain management. IQOS and ZYN are the leading smoke-free brands of the company, while Marlboro, Parliament, Chesterfield, L&M and Philip Morris are the leading cigarette report provides information and insights into Philip Morris' tech activities, including: Insights of its digital transformation strategies and innovation programs. Overview of technology initiatives covering partnerships and product launches. Insights on each technology initiative including technology theme, objective, and benefits. Details of estimated ICT budgets. Reasons to Buy Gain insights into Philip Morris' tech operations. Gain insights into its tech strategies and innovation initiatives. Gain insights into its technology themes under focus. Gain insights into various product launches and partnerships. Key Topics Covered: Overview Digital Transformation Strategy Accelerators, Incubators, and other Innovation Programs Technology Focus Technology Initiatives Venture Arm: PM Equity Partner Partnerships Network Map ICT Budget and Contracts Key Executives For more information about this company profile visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
