Philip Morris International Inc. (PMI) has released its 2024 first-quarter results with reported net revenues up by 9.7 per cent in Q1 compared to the same quarter last year, according to PMI’s press release.

PMI’s smoke-free business (SFB) accounted for 39 per cent of the company’s total net revenues. The path to achieving PMI’s ambition of becoming a smoke-free company is shown by the EA, AU & PMI DF region, where SFB accounted for almost two-thirds of revenue, led by Japan and Korea.
According to the press release, PMI’s SFB continues to deliver superior top-line growth, with net revenues increasing by 21.1 per cent (24.8 per cent organically) as well as a 31.8 per cent (37.5 per cent organic) increase in gross profit.
IQOS continues to strengthen its position as the second largest nicotine ‘brand’ in markets where present, including the #1 position in 11 markets, states the press release. In Europe, IQOS HTU market share exceeded 10 per cent for the first time with adjusted IMS growth of 9.4 per cent, which was influenced, as expected, by the impact from the EU characterizing flavour ban. In Japan, IQOS HTU market share increased by more than 3 percentage points to over 29 per cent, with adjusted IMS growth of 13.3 per cent. Notably, the heat-not-burn category surpassed combustible cigarettes in Tokyo, a demonstration of the vast potential of IQOS around the world, according to the press release.
For the oral category, the shipment volume increased by 40 per cent in cans (35.8 per cent in pouches or pouch equivalents), fuelled by ZYN nicotine pouch growth in the U.S., where shipment volume reached 131.6 million cans, representing growth of 79.7 per cent versus prior year. For combustibles, net revenues grew by 3.5 per cent (organically by 3.7 per cent), fuelled by another quarter of strong pricing across markets.
“The strength of our first-quarter results with excellent top-line growth and significant margin expansion gives us the confidence to raise our 2024 currency-neutral guidance,” said Jacek Olczak, Chief Executive Officer.
“Strong smoke-free momentum continues with rapid underlying volume progression and accelerating organic net revenue and gross profit growth, fuelled by the operating leverage of IQOS and the best-in-class economics of ZYN.”
“We are executing efficiently and effectively in a dynamic operating environment of geopolitical and economic tensions that accentuate currency volatility. We are doing our utmost to mitigate these challenges and deliver robust growth and value creation.”
The full press release can be found on the PMI website.