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

Product | Semi-Embedded Display + “Smart Memory System”: OXBAR Launches New Magnetic Vape MAGLINK
Product | Semi-Embedded Display + “Smart Memory System”: OXBAR Launches New Magnetic Vape MAGLINK
OXBAR has launched the MAGLINK vape on its official website, featuring a magnetic structure and a smart memory function. The website lists the device as offering 50,000 puffs, a 1500 mAh battery, and four adjustable power levels. The product has already appeared across multiple Canadian sales channels, where the stated puff count, e-liquid capacity, and other specifications differ notably from those shown on the official site.
Dec.12 by 2FIRSTS.ai
2Firsts Observation | Element Vape Launches “Made in USA” Section as Product Pages Show “Assembled in USA” and “Made in USA” Labels
2Firsts Observation | Element Vape Launches “Made in USA” Section as Product Pages Show “Assembled in USA” and “Made in USA” Labels
Element Vape, a U.S. online vaping retailer, uses origin labels such as “Made in USA” and “Assembled in USA” across disposable vape product pages and a dedicated collection page, grouping items under “Made in USA Disposable Vapes,” but the platform does not disclose on its public pages the applicable standards or evidentiary basis for these different claims.
Jan.20 by 2FIRSTS.ai
British American Tobacco’s Irish unit says VELO pouch sales hit 29m, net revenue climbs to €33.75m
British American Tobacco’s Irish unit says VELO pouch sales hit 29m, net revenue climbs to €33.75m
British American Tobacco’s Irish subsidiary PJ Carroll & Co Ltd reported that sales of its Velo nicotine pouches nearly quintupled in 2024 to 29 million units, driving an 11% year-on-year increase in net revenue to €33.75 million. However, amid a heavy tax burden and declining traditional cigarette volumes, the company’s pre-tax profit fell 8% to €5.69 million.
Dec.01 by 2FIRSTS.ai
Philip Morris International: Over $20 Billion Invested in the U.S. Since 2022; IQOS ILUMA to Launch Pending FDA Authorization
Philip Morris International: Over $20 Billion Invested in the U.S. Since 2022; IQOS ILUMA to Launch Pending FDA Authorization
Philip Morris International (PMI) said its U.S.-related investments have topped $20 billion since 2022, when it entered the U.S. market through its roughly $19 billion acquisition of Swedish Match. The company also said it plans to launch its heated tobacco product IQOS ILUMA in the United States pending authorization from the U.S. Food and Drug Administration (FDA).
Jan.16 by 2FIRSTS.ai
Uruguay Lawmaker Proposes Ban on Smoking and Vaping in Playgrounds and Bus Stops
Uruguay Lawmaker Proposes Ban on Smoking and Vaping in Playgrounds and Bus Stops
A bill introduced by Uruguayan lawmaker Álvaro Dastugue proposes banning smoking and vaping in public spaces that include children’s play areas, as well as at bus stops and nearby waiting zones. The draft legislation aims to reduce involuntary exposure to smoke and aerosols from tobacco, marijuana and electronic vaping devices.
Dec.24 by 2FIRSTS.ai
Survey Shows E-cigarette Use Doubles Among Young Thais
Survey Shows E-cigarette Use Doubles Among Young Thais
Thailand’s latest national health survey shows a sharp increase in e-cigarette use among people under 30, particularly among female adolescents. Researchers found that vaping has not reduced overall tobacco harm and has instead driven growth in new nicotine users, with younger ages of initiation. Public health experts urged sustained enforcement and comprehensive policies centred on banning e-cigarettes, strengthening law enforcement and expanding public awareness to protect children and youth.
Dec.19 by 2FIRSTS.ai