Philip Morris International (PMI) has announced exceptional first-quarter results for 2025, with reported diluted earnings per share (EPS) growing 24.6 per cent to $1.72 (£1.29) and adjusted diluted EPS increasing by 12.7 per cent to $1.69.
The tobacco giant has also raised its 2025 full-year adjusted diluted EPS forecast based on favourable currency conditions.
“We achieved exceptionally strong performance in the first quarter, with continued volume growth supporting an excellent top-line performance and very strong margin expansion,” Chief Executive Officer Jacek Olczak, PMI chief executive, said.
The company's smoke-free business continues to drive growth, accounting for 42 per cent of total net revenues and 44 per cent of total gross profit. “Our smoke-free business goes from strength to strength, delivering organic growth of over 20 per cent in net revenues and over 33 per cent in gross profit,” said Olczak.
Total shipment volume increased by 3.9 per cent to 187.8 billion units, with smoke-free products showing particularly strong growth at 14.4 per cent. Net revenues rose by 5.8 per cent to $9.3 billion, while gross profit surged by 11.8 per cent to $6.3 billion.
The company's heat-not-burn product IQOS continues to strengthen its position as the second largest nicotine 'brand' in markets where present, gaining 1.0 percentage point to cross 9 per cent share of combined cigarette and HTU (heated tobacco unit) industry volumes. In Japan, IQOS HTU adjusted market share increased by 3.0 percentage points to a record 32.2 per cent.
In Europe, IQOS market share increased by 1.2pp reaching a record 11.4 per cent.
In the e-vapor category, shipment volumes more than doubled, primarily driven by growth in Europe, with the VEEV product demonstrating increasing importance to PMI's multicategory smoke-free strategy.
The oral smoke-free product category also showed impressive results, with shipment volume increasing by 27.2 per cent in pouches or pouch equivalents, fuelled by ZYN nicotine pouch growth in the U.S., where shipments exceeded 200 million cans, representing 53 per cent growth.
Outside the U.S., nicotine pouch volume in cans also grew by 53 per cent, with a continuation of promising momentum in a number of emerging markets, such as Pakistan and South Africa, as well as recent national launches across Europe, including the UK.
The combustibles segment demonstrated resilience with volume growth and strong pricing, though partially offset by negative geographic mix. This resulted in flat net revenues on a reported basis, but up 3.8 per cent organically, and another quarter of robust gross profit performance with growth of 2.0 per cent (5.3 per cent organically).
PMI's global brands portfolio, spearheaded by Marlboro, achieved further market share gains, and the company's overall cigarette category share increased by 0.4 percentage points to 24.8 per cent.
Despite an “uncertain and volatile global economic environment,” Olczak said PMI remains confident in its ability to deliver superior results and forecast double-digit adjusted diluted EPS growth – between 12.0 per cent to 14.0 per cent versus 2024 – in dollar terms for the full-year 2025.
