PMI Q1 Revenue Hits $9.3B, ZYN US Shipments Jump 53% to 200M Cans

Apr.24
PMI Q1 Revenue Hits $9.3B, ZYN US Shipments Jump 53% to 200M Cans
In Q1 2025, Philip Morris International reported net revenue of $9.301 billion, up 5.8% year-over-year, with operating income rising 16.4% to $3.544 billion. Smoke-free products accounted for 42% of net revenue and 44% of gross profit. Total shipment volume grew 14.4%, with heated tobacco products like IQOS reaching record market shares in Japan and Europe. ZYN nicotine pouch shipments in the U.S. surged 53% year-over-year.

Key Points:

Net income reached $9.301 billion, a year-on-year increase of 5.8%; organic growth reached 10.2%, mainly benefiting from the growth in sales of smoke-free products and price optimization.

Operating profit increased by 16.4% to $3.544 billion, with adjusted profit reaching $3.79 billion and profit margin rising to 40.7%.

Smoke-free products have made a significant contribution, accounting for 42% of total net revenue and 44% of total gross profit. Shipments have increased by 14.4%, with organic growth in gross profit reaching as high as 33.1%.

IQOS continues to expand its market presence, with market share increasing to 32.2% in Japan and 11.4% in Europe. Global shipments of Heat-Not-Burn Tobacco Units (HTU) also grew by 11.9%.

ZYN Nicotine Pouches Shipments Increase by 53%: ZYN shipments in the United States exceed 200 million cans, surpassing expectations, thanks to early capacity improvements and strong demand.


 

On April 23, 2025, Philip Morris International (PMI) released its first quarter financial results for 2025 on its official website. The report showed that net revenue for the first quarter reached $9.301 billion, with a growth rate of 5.8%. Operating profit was $3.544 billion, an increase of 16.4%. Due to the significant growth in Q1, Philip Morris International (PMI) has raised its full-year earnings forecast for 2025.

 

Net income increased by 5.8% to $9.301 billion, while operating profit grew by 16.4% to $3.544 billion

 

·Earnings Per Share (EPS): Diluted earnings per share reported increased by 24.6% to $1.72. Adjusted diluted earnings per share were $1.69, a growth of 12.7%; excluding the impact of exchange rates, the growth rate reached 17.3%.

 

·Net income: Net income reached $9.301 billion, with a reported growth rate of 5.8% and organic growth rate of 10.2%. The growth was primarily driven by favorable pricing factors and a strong sales/product mix, especially an increase in sales of non-smoking products.

 

·Operating profit: The reported operating profit was $3.544 billion, an increase of 16.4%. The adjusted operating profit was $3.79 billion, with an organic growth rate of 16.0%. The adjusted operating profit margin increased from 38.2% in the same period last year to 40.7%.

 

PMI Q1 Revenue Hits $9.3B, ZYN US Shipments Jump 53% to 200M Cans
2025 first quarter financial report | Source: PMI

 

The smoke-free business contributed 42% of the net income, while the revenue from traditional cigarette business remained stable

 

The smoke-free business continues to serve as a growth engine, contributing 42% of the company's net revenue and 44% of total gross profit.

 

Sales of smoke-free products increased by 14.4%. Net revenue reported a growth of 15.0% (organic growth of 20.4%), while gross profit reported a growth of 27.7% (organic growth of 33.1%).

 

Heated Tobacco Products (HTU): IQOS continues to strengthen its market position, increasing its market share in the combined market of cigarettes and heated tobacco devices by 1.0 percentage points, surpassing 9%. The global shipment volume of HTU (pod units) grew by 11.9% to 37.1 billion units.

 

·In Japan, IQOS's adjusted market share increased by 3.0 percentage points to reach a record high of 32.2%. 

·In Europe, IQOS HTU's adjusted market share increased by 1.2 percentage points to reach a record high of 11.4%.

 

The shipment volume of e-cigarette (E-vapor) products such as VEEV has more than doubled, driven primarily by the European market, leading to a further expansion of profit margin.

 

Oral SFP (Oral Smoke-Free Products): Shipments (measured in pouches or equivalent units) increased by 27.2%, reaching 5.3 billion units. In the United States, ZYN nicotine pouch shipments increased by 53%, surpassing 200 million cans, exceeding expectations, thanks to early capacity increases and strong demand.

 

The volume of cigarette shipments increased slightly by 1.1%, reaching 144.8 billion units. Net revenue from cigarette business remained stable (organically increasing by 3.8%), while gross profit realized a 2.0% growth (organically increasing by 5.3%). The global brand portfolio, especially Marlboro, drove overall market share in the cigarette category up by 0.4 percentage points to 24.8%.

 

Outlook for the year 2025

 

·PMI has raised its full-year adjusted diluted earnings per share forecast (excluding currency effects). 

·The diluted earnings per share for the report are expected to range from $7.01 to $7.14. 

·Adjusted diluted earnings per share are expected to range from $7.36 to $7.49, representing an increase of 12.0% to 14.0% from $6.57 in 2024. After excluding the favorable currency impact of $0.10, the expected growth is 10.5% to 12.5%.

 

The CEO of the company, Jacek Olczak, stated, "Despite the uncertain and volatile global economic environment, we remain confident in our ability to achieve outstanding performance and predict double-digit growth in adjusted diluted earnings per share for the full year in US dollars."

 

Notice

1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.

2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.

3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.

Copyright

This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.

This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.

Malaysia Enforces Regulation of Nicotine-containing E-cigarette Products
Malaysia Enforces Regulation of Nicotine-containing E-cigarette Products
Malaysia's Health Minister, Zaliha, defends the implementation of the Poison Act on e-cigarettes containing nicotine liquid and gel.
Regulations
Oct.07 by 2FIRSTS.ai
Call for Stricter E-cigarette Laws to Protect Young Australians
Call for Stricter E-cigarette Laws to Protect Young Australians
Experts urge stricter e-cigarette laws in Australia as vaping reaches record high among young adults.
Oct.24 by 2FIRSTS.ai
Polish Police Arrest Smuggling Ring, Totaling over $50k in Goods
Polish Police Arrest Smuggling Ring, Totaling over $50k in Goods
Three individuals arrested in Poland's Lower Silesia region for smuggling disposable e-cigarettes, causing financial losses of nearly $30,000.
Regulations
Jul.29 by 2FIRSTS.ai
Dr. Mahamudu Bawumia Promises Tax Reforms in Ghana Presidency
Dr. Mahamudu Bawumia Promises Tax Reforms in Ghana Presidency
Dr Mahamudu Bawumia, leader of Ghana's NPP, vows to scrap controversial e-cigarette and betting taxes if elected president in 2024.
Aug.19 by 2FIRSTS.ai
If Hong Kong Reopens E-Cigarette Trans-Shipment Will Enterprises Choose Hong Kong or Shenzhen?
If Hong Kong Reopens E-Cigarette Trans-Shipment Will Enterprises Choose Hong Kong or Shenzhen?
On April 30, 2022, Hong Kong SAR of China announced into effect the ban on the forwarding of e-cigarettes and other heated tobacco products by land and sea transport ("the ban" for short). On October 18, about half a year after the ban took effect, Hong Kong's South China Morning Post reported an insider claim that Hong Kong may be reversing its ban by the end of this year as part of efforts to increase fiscal revenue.
Regulations
Nov.22 by Ellesmere Zhu
The Impact of Smoking on Health: Report Reveals Link
The Impact of Smoking on Health: Report Reveals Link
According to FOX17, the US Centers for Disease Control and Prevention revealed the link between smoking and lung cancer and other serious illnesses.
Industry Insight
Jan.12 by 2FIRSTS.ai