Skip to content
Search
AI Powered
Latest Stories

Smoke-free products account for 30 per cent of total revenue at Philip Morris

Smoke-free products account for 30 per cent of total revenue at Philip Morris
The research and development campus of Philip Morris International, in Neuchatel, western Switzerland. (FABRICE COFFRINI/AFP via Getty Images/File Photo)
AFP via Getty Images

Philip Morris International (PMI) on Thursday said net revenues from its smoke-free products has accounted for 29.9 per cent of total net revenues in the second quarter of the current fiscal.

The figure rises to 30.5 per cent of total net revenues for the first half of the year, and 29.7 per cent when excluding the company’s operations in Russia and Ukraine.


Market share for heated tobacco units in IQOS markets went up by 1.2 points to 7.5 per cent, excluding Russia and Ukraine, the company added. Total IQOS users at quarter-end is estimated at approximately 19 million, a 20.5 per cent increase versus June 30, 2021.

PMI reported a 6.2 per cent increase in adjusted net revenues, excluding Russia and Ukraine, on an organic basis in the second quarter, reflecting total shipment volume growth of 3 per cent, driven by cigarettes (+2.4%) and heated tobacco units (+7.4%).

Adjusted net revenue per unit increased by 3 per cent on an organic basis, reflecting a further increase in the proportion of heated tobacco units in PMI’s sales mix, albeit at a lower rate than in prior quarters, due to the higher pricing and the timing of shipments to Japan (approximately 2 billion units, which are expected in the second half).

“Our strong underlying performance continued in the second quarter, with top- and bottom-line growth exceeding our initial expectations,” said Jacek Olczak, PMI chief executive.

“This reflected excellent IQOS momentum, including accelerating growth in pro forma (excluding Russia and Ukraine) total IQOS users and heated tobacco unit in-market sales volume, as well as favorable cigarette category trends.”

The company has raised its outlook for the full year and now expects to deliver pro forma adjusted growth in net revenues of 6-8 per cent, on an organic basis.

In the second quarter, the company delivered a 5.6 per cent earnings growth, and targets a currency-neutral growth of 10-12 per cent for 2022 fiscal.

“Building on our excellent financial results in 2021, this year's outlook puts us well on track to comfortably exceed our minimum compound annual net revenue and adjusted diluted EPS growth targets for 2021 to 2023 on a pro forma basis,” Olczak added.

More for you

A woman enters the Selfridges department store

A woman enters the Selfridges department store on December 13, 2024 in London, England

Photo by Leon Neal/Getty Images

Retail faces mixed fortunes in 2025 amid cost pressures, AI opportunities, and high street revival


The UK retail sector is bracing for a challenging but opportunity-filled 2025, according to Jacqui Baker, head of retail at RSM UK. While the industry grapples with rising costs and heightened crime, advancements in artificial intelligence and a revival of the high street offer potential pathways to growth, she said.

Keep ReadingShow less
unsafe soft drinks seized in Southend

Unsafe soft drinks seized in Southend

Photo: Southend-on-Sea City Council

1,100 unsafe soft drinks seized in Southend safety crackdown

Southend-on-Sea City Council officials have secured food condemnation orders from Chelmsford Magistrates Court, resulting in the seizure and destruction of 1,100 unauthorised soft drinks.

The condemned drinks, including Mountain Dew, 7-UP, Mirinda, and G Fuel energy drinks, were found during routine inspections of food businesses across Southend by the council’s environmental health officers.

Keep ReadingShow less
Charity Super.Mkt at Brent Cross Shopping centre in north London

A customer browses clothes inside Charity Super.Mkt at Brent Cross Shopping centre in north London on, December 17, 2024

Photo by JUSTIN TALLIS/AFP via Getty Images

Brits kindle Christmas spirit with second-hand gifts

Bursting with customers one afternoon the week before Christmas, a second-hand charity shop in London's Marylebone High Street looked even busier than the upscale retailers surrounding it.

One man grabbed two puzzle sets and a giant plush toy as a present for friends, another picked out a notebook for his wife.

Keep ReadingShow less
Nothing is more important than your Mental Elf

Nothing is more important than your Mental Elf

Lancashire Mind’s 11th Mental Elf fun run was its biggest and best yet – a sell-out event with more than 400 people running and walking in aid of the mental charity, plus dozens more volunteering to make the day a huge success.

The winter sun shone on Worden Park in Leyland as families gathered for either a 5K course, a 2K run, or a Challenge Yours’Elf distance which saw many people running 10K with the usual running gear replaced with jazzy elf leggings, tinsel and Christmas hats.

Keep ReadingShow less
A woman walks past a window display promoting an ongoing sale

A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.

Photo by Leon Neal/Getty Images

Retail sales disappoint before Christmas

UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.

Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.

Keep ReadingShow less