Tobacco company Philip Morris International reported mixed results for the second quarter on Tuesday, as strong gains in smoke-free products were not enough to offset weaker-than-expected cigarette sales and lower ZYN nicotine pouch shipments.
The company’s revenue rose 7.1% to $10.14 billion but missed the average estimate of $10.33 billion. Shares fell about 5% in premarket trading.
Cigarette shipment volumes declined 1.5% during the quarter. In contrast, ZYN shipments increased 23.8% to 190 million cans, though this was below expectations. Despite the shortfall, ZYN remains a key part of PMI’s effort to move away from traditional tobacco.
The company has said it aims to generate two-thirds of its net revenue from smoke-free products by 2030.
Sales of IQOS, PMI’s heated tobacco device, continued to grow in Europe, Japan, Jakarta, Mexico, and Seoul. Earlier this year, the company also launched IQOS in the United States on a limited basis.
Philip Morris posted an adjusted profit of $1.95 per share for the quarter, above its previous forecast of $1.86. The company now expects full-year adjusted earnings between $7.43 and $7.56 per share, raising its outlook from a prior range of $7.36 to $7.49.
