On February 6, Philip Morris International (PMI) released its fourth quarter 2024 financial report and full year performance on its official website. The report showed that fourth quarter revenue increased by 7.3% to $9.71 billion, exceeding market expectations of $9.44 billion, compared to $9.05 billion in the same period last year. Organic revenue for the 2024 fiscal year increased by 9.8% to $37.9 billion, higher than the previous fiscal year's $35.25 billion.
In the fourth quarter, total sales increased by 2.9% to 193.1 billion units, with the sales of heated tobacco pods rising by 5.1% to 35.7 billion units, and sales of oral nicotine products increasing by 22.0% to 4.6 billion bags. Non-smoking product revenue accounted for 40% of total revenue, with gross profit accounting for approximately 42% and sales volume making up 20.9%. The total units (units, bags) of non-smoking business achieved quarterly shipments exceeding 40 billion for the first time, and have been launched in 95 markets, with a user base of 38.6 million, an increase of 5.3 million users compared to December 2023.
In the 2024 fiscal year, total sales volume increased by 2.9% to 774 billion units (cigarettes, pods), with heated tobacco products growing by 11.6% and oral nicotine products growing by 24.6%.
PMI emphasizes that IQOS continues to be the second-largest nicotine "brand" in the existing market, driving a 0.7% increase in total sales volume in the cigarette and HTU (heated tobacco unit) industry in the fourth quarter; in Japan, the heated tobacco product ILUMA i is driving growth for IQOS, with sales volume in the domestic market increasing by about 13% in the adjusted fourth quarter and full year of 2024; in Europe, IQOS market share increased by 0.9% to 10.6% in the fourth quarter.
VEEV e-cigarettes ranked among the top three in 13 European markets, with the top spot in five markets including Italy, Romania, Czech Republic, Slovakia, and Finland, with an annual shipment volume of 1.7 billion units (including pods), more than doubling compared to 2023. In terms of oral nicotine products, ZYN's strong performance in the United States drove growth, with a 42% increase in shipment volume in the fourth quarter reaching nearly 165 million cans, with over double the volume of nicotine pouches sold outside the US, with significant contributions from Pakistan, South Africa, UK, and Mexico. PMI's nicotine pouches are now available in 37 markets, including recent launches in Italy, Romania, and Thailand.
PMI's CEO Jacek Olczak stated that,
In 2024, it was an exceptional year for PMI. We achieved strong annual performance, driven by the continued growth of IQOS and ZYN, as well as strong performance in combustibles.
Currently, the FDA has approved all ZYN nicotine pouches that we sell in the United States, further proving the compelling scientific evidence supporting smoke-free products. We hope our other pending FDA applications will be expedited. We also hope other countries will follow suit and implement effective tobacco harm reduction measures. This is especially important in places where smoke-free products are banned because they can lead to the continued presence of combustible cigarette consumption.
With strong momentum across all categories, we believe that our smoke-free transition and brand portfolio will continue to deliver excellent performance in 2025 and beyond, creating value for our shareholders.
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