PMI's Q1 2025 Earnings Report: Tobacco-Free Business "Racing Ahead", Traditional Business Steadily Rising

On April 23, 2025, Philip Morris International (PMI) released its first-quarter earnings report for 2025. Many of its key indicators exceeded market expectations. The data shows that the company is accelerating its transformation towards tobacco-free products. E-cigarettes, heated tobacco products, and oral tobacco-free products have become the core engines of growth, while its traditional cigarette business remains stable.

I. Impressive Financial Data Demonstrating Strong Strength

• Net Revenue: PMI achieved net revenue of $9.3 billion, a year-on-year increase of 5.8%, with an organic growth rate of 10.2%.
• Operating Profit: It jumped by 16.4% year-on-year to $3.544 billion. The adjusted operating profit margin rose to $3.79 billion, with an organic growth rate of 16.0%.
• Earnings per Share: The reported diluted earnings per share increased by 24.6% to $1.72. The adjusted diluted earnings per share was $1.69, an increase of 12.7%. Excluding the impact of exchange rates, the growth rate reached 17.3%.

II. The Rise of the Tobacco-Free Business Leading the New Growth Trend

(I) A Comprehensive Growth Momentum

(II) Outstanding Performance of Each Sub-category

• Heated Tobacco Products (HTU): IQOS continues to strengthen its overall position as the second-largest nicotine "brand" in existing markets (the combined sales volume of the cigarette and heated tobacco industries increased by 1.0 percentage point, with a market share exceeding 9%). It holds approximately 77% of the global heated tobacco market share. The global shipment volume of HTU increased by 11.9% to 37.1 billion sticks.
  • In Japan: The adjusted IMS of IQOS increased by 9.3%, and its market share grew by 3.0 percentage points, reaching a record high of 32.2%.
  • In Europe: The adjusted market share of IQOS HTU increased by 1.2 percentage points, reaching a record high of 11.4%. The adjusted IMS growth met expectations, with an estimated increase of 7.4%.
  • In other markets: The adjusted IMS continued to grow strongly. The sales share in major global cities increased, including Jakarta, Seoul, and Mexico City.
• E-cigarettes (E-vapor): The shipment volume of e-cigarette products represented by VEEV doubled. The European market served as the main growth driver. The product's gross profit margin further expanded, and its position in the company's multi-category tobacco-free strategy became increasingly important.
• Oral Tobacco-Free Products (Oral SFP): The shipment volume increased by 27.2% (an increase of 31.0% in cans). This was mainly due to the outstanding performance of ZYN nicotine pouches in the US market, with shipments exceeding 200 million cans, a 53% increase, far exceeding expectations. This was attributed to the early expansion of production capacity and strong market demand. Outside the US market, the shipment volume of oral tobacco products in cans also increased by 53%, showing a good development trend in emerging markets such as Pakistan and South Africa, as well as European countries such as the UK and Poland.

III. The Traditional Cigarette Business Steadily Maintaining Its Position

IV. Different Regional Markets with Distinct Development Highlights

• In the European market, the total shipment volume was stable. The share of heated tobacco products rose to 11.4%. There were fluctuations in some countries, but both net revenue and operating profit increased.
• In the Southeast Asia, CIS, and Middle East markets, the total shipment volume increased by 4.6%. The adjusted IMS of heated tobacco products increased by 11.1%. Some countries in the region experienced significant growth, and both net revenue and operating profit improved significantly.
• In the East Asia, Australia, and Global Travel Retail markets, the total shipment volume increased by 5.9%. The adjusted IMS of heated tobacco products increased by 10.7%. The Japanese and travel retail markets made significant contributions, and all indicators were positive.
• In the Americas market, the total shipment volume was stable. The shipment volume of oral tobacco products increased by 42.0%, mainly driven by ZYN nicotine pouches in the US. Net revenue and operating profit increased significantly.

V. Outlook for 2025: Optimistic Prospects and Strong Confidence

• PMI raised its full-year 2025 forecast for adjusted diluted earnings per share (considering only exchange rate factors).
• It is expected that the reported diluted earnings per share will be between $7.01 - $7.14.
• The adjusted diluted earnings per share is expected to be between $7.36 - $7.49, a 12.0% - 14.0% increase compared to 2024. Excluding the favorable exchange rate impact of $0.10, the expected growth is 10.5% - 12.5%.
• The company also expects the full-year net revenue to achieve an organic growth of 6% - 8%, and the operating revenue to achieve an organic growth of 10.5% - 12.5%.

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资料下载：

2022年1月6日电子雾化高峰论坛会议资料分享

2021年第三届电子烟展会论坛PPT分享

第六届电子烟暨低温本草产业论坛资料分享

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