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.

References:

[1] Philip Morris: L'incertitude sur le tabac chauffé éclipse les résultats du troisième trimestre

Also Read:

[1] Philip Morris International Reports Q3 Earnings Growth of 13.8%

[2] Brazilian Senator Proposes Regulations for E-cigarette Industry

[3] Clifford E. Douglas Appointed President and CEO of Smoke-Free World Foundation

[4] PMI Worries About Potential Ban on Heated Tobacco Products at COP10

#PMI

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 | Featuring an ultra-thin metal body and a “Champagne Gold” design, Sikary launches the Sikary Fit in the Middle East

Sikary has listed its new disposable “Fit” on the official site and UAE channels. The device features a 13 mm metal body with a 12 mL e-liquid chamber and is advertised for up to 12,000 puffs, priced at around AED 35 per unit.

Oct.28 by 2FIRSTS.ai

NSW Police Seize About US$1.9 Million in Illegal Tobacco Products, Including 15,000 Vapes

During a recent routine traffic stop, New South Wales police discovered a large quantity of illegal tobacco and vapes hidden inside a rental truck, including approximately 942,000 cigarettes and more than 15,000 e-cigarettes, with an estimated value of nearly AUD 2 million. The 31-year-old driver was arrested at the scene and the case has now entered judicial proceedings.

Dec.01 by 2FIRSTS.ai

Number of Vapers in Britain Surpasses Smokers for the First Time, Government Tightens Nicotine Regulations

For the first time, more people in Britain now vape than smoke. According to the Office for National Statistics (ONS), 10% of adults (5.4 million) regularly use e-cigarettes compared with 9.1% (4.9 million) who smoke cigarettes. The government credits vaping for the decline in smoking but plans tougher rules through the Tobacco and Vapes Bill, including a generational smoking ban and restrictions on nicotine pouch flavours, packaging, and sales.

Nov.05 by 2FIRSTS.ai

South Korea National Assembly Approves Bill to Regulate E-Cigarettes Under Tobacco Law After Nine Years of Debate

South Korea’s National Assembly Legislation and Judiciary Committee passed a long-debated amendment to the Tobacco Business Act on November 26, expanding the legal definition of tobacco to include synthetic nicotine e-cigarettes. The amendment aims to end the regulatory blind spot surrounding such products while ensuring transitional support for vape retailers and a grace period for compliance.