Shares of Philip Morris Worldwide Inc. (NYSE: PM) gained over 2% on Wednesday, after the corporate delivered stable outcomes for Q1 2025 and raised its outlook for the complete yr. The sturdy quarterly efficiency was pushed by sturdy momentum within the smoke-free enterprise, fueled by ZYN and IQOS.
Higher-than-expected outcomes
Philip Morris’ web revenues elevated 5.8% to $9.3 billion within the first quarter of 2025 in comparison with the identical interval a yr in the past. Natural income progress was 10.2%. Reported earnings per share grew 24.6% year-over-year to $1.72 whereas adjusted EPS rose 12.7% to $1.69. Each the highest and backside line numbers beat expectations.
Stellar smoke-free efficiency
PM’s smoke-free enterprise delivered a stable efficiency in Q1 2025, with a 15% progress in revenues and a 27.7% rise in gross revenue. Cargo volumes had been up 14.4%. This phase now accounts for 42% of whole revenues and 44% of whole gross revenue. The corporate’s smoke-free merchandise can be found in 95 markets and it has expanded its multi-category smoke-free portfolio to 46 markets.
The smoke-free momentum was pushed by progress in ZYN and IQOS. ZYN nicotine pouches noticed shipments within the US improve by 53% to 202 million cans. Outdoors the US, nicotine pouch quantity in cans additionally grew 53%. Through the quarter, shipments nearly trebled outdoors the Nordics and the product is gaining traction in markets like Austria and Switzerland.
IQOS heated tobacco items (HTU) adjusted in-market gross sales (IMS) quantity grew 9.4% in Q1, with sturdy efficiency in Japan and Europe. The corporate expects double-digit progress for the rest of the yr.
Resilience in combustibles
Revenues within the combustibles phase remained flat YoY in Q1 2025 however rose 3.8% on an natural foundation, helped by quantity progress and powerful pricing, partly offset by unfavourable geographic combine. Gross revenue grew 2% on a reported foundation and 5.3% organically. Cigarette volumes had been optimistic and the corporate continued to see progress in markets the place smoke-free merchandise will not be permitted. Marlboro continued to realize market share within the quarter and PM’s total cigarette class share elevated to 24.8%.
Raised revenue outlook
Philip Morris raised its earnings outlook for the complete yr of 2025 and now expects reported EPS to vary between $7.01-7.14 and adjusted EPS to vary between $7.36-7.49. It continues to anticipate natural income progress of 6-8% for the yr.
