PMI's Annual Profit Forecast Declines due to Lowered Heat Tobacco Shipments

PMI by 2FIRSTS.ai
Oct.20.2023
PMI's Annual Profit Forecast Declines due to Lowered Heat Tobacco Shipments
PMI's lower-than-expected shipments of heated tobacco products dampen profit forecasts and overshadow Q3 performance, according to French media Boursorama.

According to a report from Boursorama, a French media outlet, Philip Morris International (PMI) is expecting lower than anticipated shipments of its heated tobacco products this year. This has led to disappointment in the company's upward profit forecast for the year and its underperformance in the third quarter, which exceeded expectations.


Despite playing a significant role in the global tobacco industry, PMI is currently seeking alternatives to tobacco due to the increasing stringency of tobacco regulations and decreasing demands in certain markets. PMI's heated tobacco product, IQOS, has been the company's flagship product in its transition towards tobacco alternatives. Since 2008, PMI has announced investments of over $10 billion in heated tobacco products.


Philip Morris International (PMI) announced that due to delays in its product launch in the Taiwanese market and limited growth in the Russian and Ukrainian markets, as well as uncertainty surrounding the new regulations on heated tobacco products in Europe and its impact on inventory levels, its annual shipment volume of heated tobacco products will be lower than initially projected. This contradicts the optimistic outlook on heated tobacco products that was presented by the company during its investor day in September, shifting the focus away from profit growth.


PMI has announced that its adjusted earnings per share for the third quarter were $1.67. According to data provided by LSEG, analysts had an average expectation of earnings per share of $1.61. However, due to increased cigarette prices, demand for heated tobacco products, and the rapid growth of their nicotine pouch brand Zyn, the company has raised its full-year profit forecast and has exceeded expectations in the third quarter.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Australian Border Force Deputy Commissioner Meets China Tobacco Regulator as Illicit Tobacco Enforcement Intensifies
Australian Border Force Deputy Commissioner Meets China Tobacco Regulator as Illicit Tobacco Enforcement Intensifies
ABF Deputy Commissioner Tim Fitzgerald visited Beijing for talks with China’s STMA. The meeting follows several exchanges between Australian enforcement agencies and China’s tobacco regulator in recent years. The discussions come as Australia intensifies efforts to combat illicit tobacco and vaping products, including large seizures at the border, while the country’s strict tobacco and vape policies continue to spark debate over their impact on the growth of black markets.
Mar.09
Can hookah go institutional? A hookah company seeking to go public makes its case with capital, technology and regulation
Can hookah go institutional? A hookah company seeking to go public makes its case with capital, technology and regulation
2Firsts explored whether hookah can evolve into a more mature and governable category by interviewing Dubai-based hookah company AIR. AIR argues that strong margins, OOKA’s closed-system model and the prospect of differentiated regulation could support that shift. The larger question is whether this is simply AIR’s capital-markets narrative, or an early sign that competition, regulation and category boundaries in hookah are beginning to change.
Apr.02
BENDSTA Urges Prime Minister to Review Bangladesh’s 2025 Tobacco Control Ordinance
BENDSTA Urges Prime Minister to Review Bangladesh’s 2025 Tobacco Control Ordinance
The Bangladesh Electronic Nicotine Delivery System Traders Association (BENDSTA) has urged the prime minister to initiate a comprehensive parliamentary review of the Smoking and Tobacco Products Use (Control) Ordinance, 2025.
Mar.12 by 2FIRSTS.ai
New York Says Seized Illegal Vape Shipment Had Retail Value of USD 2.2 Million to USD 3.5 Million
New York Says Seized Illegal Vape Shipment Had Retail Value of USD 2.2 Million to USD 3.5 Million
New York state health officials said a joint operation last week involving the State Department of Health, Nassau County police and local health officials intercepted about 14 tons of illegal vape products that were intended for local distributors and smoke shops.
Mar.20 by 2FIRSTS.ai
York Traders Could Face Fines of Up to GBP 200 Under New Illegal Vape Enforcement Plans
York Traders Could Face Fines of Up to GBP 200 Under New Illegal Vape Enforcement Plans
City of York Council is considering new plans that would allow fines of up to GBP 200.00 (approximately USD 260.00) for traders caught selling illegal single-use vapes.
Apr.09 by 2FIRSTS.ai
West Virginia Governor Signs Bill Directing USD 2.9 Million From Juul Settlement to Youth Tobacco Prevention
West Virginia Governor Signs Bill Directing USD 2.9 Million From Juul Settlement to Youth Tobacco Prevention
The American Cancer Society Cancer Action Network said West Virginia Governor Patrick Morrisey has signed House Bill 5691 into law, directing USD 2.9 million from the Juul settlement to youth tobacco prevention and programs that help people quit. The bill is a supplemental appropriation measure, and the Legislature’s bill history shows it passed the House on March 11, passed the Senate on March 13 and was sent to the governor on March 18.
Mar.20 by 2FIRSTS.ai